Apartment demand in Dallas surged recently, pushing ahead of long-time absorption leader New York to rank as the nation’s best performer. Dallas absorbed over 32,000 units in the year-ending 3rd quarter, coming in just ahead of the pace in Los Angeles and Houston. In the five years before the COVID-19 pandemic hit, demand in Dallas was averaging at roughly 17,400 units annually. In 2nd quarter 2020, apartment absorption faded as the pandemic prompted residents to shelter in place. Starting in 2nd quarter 2021, demand started ramping up again in Dallas and rates are now at historical highs. Meanwhile, supply in Dallas has stayed about the same as before the pandemic. Roughly 20,550 new units were delivered here in the year-ending 3rd quarter. This was right in line with the annual completion volumes this market has seen since early 2017.
