A new study from M/PF Yieldstar says apartment occupancy in the Dallas-Fort Worth area during the final quarter of 2008 fell enough to negatively counter the area’s significant apartment rental growth the year prior.
M/PF YieldStar, a provider of comprehensive analytics on the multifamily housing sector, said this week the net demand for apartments in the D-FW area hit negative 5,870 units in the period stretching from October to December. Annual apartment demand was similar, down 5,580 units in 2008 as absorption through September had been in positive territory.
The area’s occupancy rate also fell to 91.4 percent in December, M/PF Yieldstar said. Additionally, the area’s occupancy rate fell 1.8 points during the final quarter of 2008 and fell by 2.7 points for the entire year.
“This was one of the worst quarterly demand performances ever recorded in Dallas-Fort Worth,” Greg Willett, vice president of research for M/PF Yieldstar, said. “For move-outs to reach this magnitude, job loss has to be pretty substantial. It looks likely that there will be huge revisions to the current employment statistics that say D-FW is adding jobs at a reasonably healthy pace.”
M/PF YieldStar’s report added that construction on new properties, which added another 4,215 apartments during the fourth quarter, strained the market more by creating a new supply total of 12,148 apartment units.
Monthly rents in the D-FW area hit an average price of $752 per month at the end of 2008, with M/PF YieldStar claiming rents for North Texas apartments fell a slight 0.3 percent in 2008.
M/PF YieldStar, a provider of comprehensive analytics on the multifamily housing sector, said this week the net demand for apartments in the D-FW area hit negative 5,870 units in the period stretching from October to December. Annual apartment demand was similar, down 5,580 units in 2008 as absorption through September had been in positive territory.
The area’s occupancy rate also fell to 91.4 percent in December, M/PF Yieldstar said. Additionally, the area’s occupancy rate fell 1.8 points during the final quarter of 2008 and fell by 2.7 points for the entire year.
“This was one of the worst quarterly demand performances ever recorded in Dallas-Fort Worth,” Greg Willett, vice president of research for M/PF Yieldstar, said. “For move-outs to reach this magnitude, job loss has to be pretty substantial. It looks likely that there will be huge revisions to the current employment statistics that say D-FW is adding jobs at a reasonably healthy pace.”
M/PF YieldStar’s report added that construction on new properties, which added another 4,215 apartments during the fourth quarter, strained the market more by creating a new supply total of 12,148 apartment units.
Monthly rents in the D-FW area hit an average price of $752 per month at the end of 2008, with M/PF YieldStar claiming rents for North Texas apartments fell a slight 0.3 percent in 2008.
