Fort Worth Apartment Rents Moderate
James Syverson, Senior Manager 972.770.1167 | email@example.com
Apartment properties in Fort Worth and across the entire North Texas area have been red hot the past several years. However, rent increases are starting to slow down.
According to a recent report from rent.com, rents for a one-bedroom apartment in Fort Worth are up nearly 10% year-over-year in July. That percentage is low compared to some nearby cities such as Irving, which saw increases of 28%, and Dallas, where rents increased 16% in the same time period.
High Rents Have an Impact
Just like the rest of the state, at least in the major cities, apartment rents in the North Texas area are still going up, but they’re going up at a slower pace, Harold Hunt, a research economist at Texas A&M Real Estate Center told the Fort Worth Report.
“I think rents have gotten to a point where the pig’s kind of squealing here,” Hunt said. “You’ve got people that are doubling up because they can’t afford it, so they get a roommate.”
Hunt points to inflation taking a bigger cut of household income as one reason for the slowdown. “People have a lot more of their paycheck going to other essentials, such as fuel, so it’s hard to justify paying higher rent prices.”
Statistics indicate apartment occupancy is down slightly in the Metroplex. According to a CBRE Report, occupancy fell to 96.2% in the second quarter of 2022, down from 97.4% in the first quarter.
Newer apartments coming online have also seen a drop. Deliveries of new apartments are down to 4,623 units in the second quarter, a decline of 1.3% from the first quarter.
Sales Remain Strong
Despite slowing rents and occupancies, multifamily purchase prices are still strong. As a result, aggressive assessments are chasing those sales.
While increasing interest rates are starting to push people out of purchasing new homes and into renting, they are also making apartment deals less palatable. Analysts anticipate a leveling off of values going forward, especially if interest rates continue to rise.