The small Texas market of Sherman-Denison has recently taken the notice of many, perhaps due to the boom in semiconductor plants, including facilities from Texas Instruments and GlobiTech that promise thousands of jobs in the area. Apartment developers have noticed too. The small market about 70 miles north of Dallas currently has about 6,800 existing apartment units – with another nearly 2,000 on the way, according to recent data from RealPage Market Analytics. As of 2nd quarter 2024, the 1,848 apartment units underway in Sherman-Denison would grow the market’s total existing inventory an astounding 27%. And that’s on top of the 7.3% inventory growth seen in the last year, thanks to the addition of about 460 new units. Apartment fundamentals in Sherman-Denison, meanwhile, remain comparatively stronger than nearby Dallas and Fort Worth. Effective asking rents here inched up a slight 0.2% in the year-ending June, compared to rent cuts in Dallas (-3%) and Fort Worth (-2%). Demographic tailwinds in Sherman are hard to overstate. Total population grew 2.1% in 2022, according to the U.S. Census Bureau, boosting the market’s five-year growth rate to 8.6%, one of the highest rates in the nation.
