In 2022, the rent was too damn high.
It’s almost become standard operating procedure for Dallas’ workforce to not be able to afford rent or a mortgage. Even affordable housing isn’t particularly affordable — and there’s not enough of it to meet the growing needs of the Dallas area.
The national rent index showed the fastest growth in its short history in 2021, as the median rent grew 17.6 percent, from $1,099 to $1,293.
A recent study from ApartmentList.com shows that more rental options came on the market in 2022 with the advent of long-awaited new construction. And 2023 looks even brighter, experts say.
“While the market remained hot heading into the start of [2022], such extreme levels of rent growth were not sustainable,” the report states. “In the first six months of 2022, rents increased by 5.5 percent nationally, a growth rate that represented a notable slowdown from the 2021 pace, but remained well-ahead of the pre-pandemic norm.”
Igor Popov, chief economist for AparmentList.com, said the suburban boom continues, with rent growth in suburban areas outpacing metro downtowns.
“In Apartment List’s final report of the year, we dive into what has driven the market to where it is today and give insight into why renters will have the upper hand in the new year,” Popov said.
Dallas Rentals
Just when it starts to feel like there are no options available for those who choose to rent a home, the Dallas-Fort Worth market shows up in a big way.
We found a one-bedroom, one-bathroom West Dallas rental home at 3706 Bickers St., for an affordable $800 a month.
Several properties are in the $1,500 to $2,000 per month range, including two-bedroom units at the Abstract at Design District and The Whitney.
For higher-end renters, a stunning five-bedroom at 3428 Beverly Drive, Highland Park, is listed for $37,500 a month. The 13,000-square-foot home features a wine cellar, a gourmet kitchen, and a guest house. There’s ample space for up to 100 guests, so entertaining is a must.
More than 5,000 rental properties are currently listed in Dallas — and that’s just in the city limits.
Rent prices are up in the suburbs, but there’s plenty to choose from.
Under Construction
It’s exciting to see the jam-packed agendas at the City Plan Commission and Dallas City Council as new housing projects are reviewed.
At least a dozen housing projects were approved this year that include an affordable component. Alamo Manhattan broke ground on the second phase of luxury condominiums in the Bishop Arts District. Monthly rent starts at about $1,316 in Phase One of the project. City leaders also recently announced the repurposing of Hensley Field, which could house more than 30,000 residents in the next decade.
While those plans are well into the future, there is hope for housing, and particularly for renters.
“Looking ahead to [2023], we expect that the most notable trend in the rental market will be a shift in bargaining power away from property owners and back to renters,” Popov said. “This shift already appears to be underway, as evidenced by the recent declines in the national median rent. The factors that have driven that dip – namely, cooling demand colliding with rising inventory – are likely to persist into [2023}.”
