If you own apartment real estate in Dallas, then this is a great time for you. According to statistics, rental units are in incredibly high demand right now. In fact, research shows that the market looks better than it has in nearly a decade. The last time units were this full was 2000. This good news can’t come soon enough after the impressive hits to the real estate market caused by the recession in recent years. North Texas rentals showed a net decline for both 2008 and 2009, after all. Now, suddenly, they’ve recovered and even risen.
The Source of the Boom
Experts say that the foreclosure market is in large part responsible for this newly active rental market. People who were buying homes are no longer doing so and those who lost their homes to foreclosure are not in a position to buy new ones either. This leaves most people with the option of apartment rentals. These renters as a group represent an additional net demand for Dallas apartments. At last count, the market showed a ninety one percent total occupancy and even in the last quarter of 2010, an additional 470 Dallas apartments were rented to new tenants.
The Consequences of the Boom
This boom in the apartment market has had an important effect on the Dallas area. To begin with, it has revitalized interest in the sale and construction of apartment real estate. In the last year 10, 753 new apartment units were built. Insiders say that we can expect that number to rise in 2011. Of course this boom in rentals will also have an effect on potential renters themselves. You can see it already in statistics that show turnover rates are at historic lows. People do not want to give up their apartments without good reason. As the demand rises, so too will the difficulty involved in finding an appropriate unit.