Dallas-Fort Worth's average apartment rent regained some lost value in July, but remains $13 lower than pre-pandemic levels, a new report from ApartmentData.com shows.
The DFW multifamily space saw average local rents rise $2 in July after facing three months of post-pandemic drops. Even still, DFW's average apartment rent is down $13 compared to March, and Class-A specifically is down $37 in four months.
The market's abundance of newer Class-A properties is largely to blame for the decline.
"Housing is essential, but the amount of Class-A new supply in the pipeline will face challenging lease-up times," ApartmentData.com President Bruce McClenny said in a statement. "At the other end of the class spectrum, rent collection looms as a huge problem as Congress painfully crafts a second stimulus package."
In late March, Class-A DFW apartments reported an average monthly rent of $1,510, a figure that has since fallen to $1,473 per month.
Overall, the average DFW market rent was $1,163 in late July, compared to $1,176 in March, ApartmentData.com reports.
Apartment absorption rebounded in a big way in July with 3,241 units leased out, rivaling the best monthly performance in six years, ApartmentData.com showed.
Still, the multifamily sector is vulnerable as the nation continues to battle job losses and questions about government aid and future evictions.
In terms of lost rental values, Class-C and D properties fared the best, with Class-C assets seeing only a $2 price decline on average between March and July, while Class-D DFW apartments actually saw average rents rise by $4 during the four-month period. By the end of July, Class-C reported an average rent of $997, while Class-D came in at $860.
Apartment developers and operators predicted earlier this summer that consumer demand for more space outside denser areas in the wake of the coronavirus pandemic could spark interest in suburban garden-style apartments.
