Demand is pushing rents upward in Texas, and renters in Dallas are feeling the burn in their wallets. According to a recent analysis from ApartmentList, Dallas is the most expensive metro area in Texas for renters, with the median price for a two-bedroom apartment clocking in at $1,560 per month. That’s $90 higher than Austin, which is often decried for its astronomical real estate prices, though the state capital saw a 7.8 percent year-over-year increase in rent prices. Rents are up 4.8 percent for Dallas year-over-year, while Plano has seen a 5.9 percent year-over-year increase in rents — the second highest in the state. Look for that number to inch skyward as more luxury multifamily developments come online in Plano and along the northern corridors of Dallas.
Statewide numbers show a year-over-year increase in prices for an average one-bedroom apartment by 3.5 percent. That’s two percentage points higher than the national average. The reason? Scarcity. Why do you think developers are working like madmen, trying to get all of these multifamily developments built? There’s a huge market for apartments in Texas, with all these corporate relocations and a robust job market. More people are moving from rural areas and into more densely populated metros, too. Apartment renters want a great location more than anything, studies have shown.
“Rents in Plano ran a median price of $1,410 for a 2-bedroom and $1,030 for a 1-bedroom in January,” the report said. It’s the second-fastest city in terms of rent price growth, too. Interesting, though, that of Texas communities, The Woodlands has the highest rents in the state, with the median two-bedroom apartment leasing for $1,810 as of February 2016.
What are you seeing in your area when it comes to rental values?