Sticker shock

Apartment rents increase dramatically in 2 DFW cities

Apartment rents increase dramatically in 2 DFW cities

Dallas apartment building
Median two-bedroom rent in Fort Worth and Dallas both are below the national average. Photo courtesy of Abodo

Across the Dallas-Fort Worth area, apartment rents are going up, with Arlington and Mesquite seeing price hikes of least 5 percent from 2017 to 2018, a new report shows.

Meanwhile, Plano had the highest DFW apartment rents in March, whereas Dallas had the lowest, according to the report, released by rental marketplace Apartment List.

Of the 10 major DFW cities tracked by Apartment List, only McKinney experienced a decline (0.3 percent) in apartment rents from March 2017 to March 2018.

As apartment rents climb in DFW, thousands of apartments are under construction, which likely will lead to more competitive pricing.

In March, The Washington Post reported that about 38,000 apartments currently are being built in DFW. That’s the second highest number of apartments under construction among U.S. markets, behind only New York City (about 60,000).

“In Dallas and other Sun Belt cities, the job growth is enormous and the cost of living is lower than in D.C. and New York, so more apartments are needed,” Julian Spiker, a market analyst with CoStar Group in Washington, D.C., told the Post.

Here’s a rundown of the rental rates for the 10 DFW markets monitored by Apartment List:

  • Arlington. Median rent for two-bedroom apartment: $1,200. Increase: 5.4 percent from March 2017 to March 2018.
  • Mesquite. Median rent for two-bedroom apartment: $1,310. Increase: 5.1 percent from March 2017 to March 2018.
  • Carrollton. Median rent for two-bedroom apartment: $1,080. Increase: 3.2 percent from March 2017 to March 2018.
  • Garland. Median rent for two-bedroom apartment: $1,220. Increase: 2.9 percent from March 2017 to March 2018.
  • Irving. Median rent for two-bedroom apartment: $1,190. Increase: 2.9 percent from March 2017 to March 2018.
  • Plano. Median rent for two-bedroom apartment: $1,410. Increase: 2.3 percent from March 2017 to March 2018.
  • Grand Prairie. Median rent for two-bedroom apartment: $1,220. Increase: 2.1 percent from March 2017 to March 2018.
  • Fort Worth. Median rent for two-bedroom apartment: $1,120. Increase: 2.1 percent from March 2017 to March 2018.
  • Dallas. Median rent for two-bedroom apartment: $1,100. Increase: 1.8 percent from March 2017 to March 2018.
  • McKinney. Median rent for two-bedroom apartment: $1,380. Decrease: 0.3 percent from March 2017 to March 2018.

While rents in the city of Dallas and Fort Worth rose 1.8 percent and 2.1 percent, respectively, from 2017 to 2018, they jumped even more in Houston during the same period — 2.8 percent. Year-over-year rent increases were lower in San Antonio (1.2 percent) and Austin (0.1 percent), according to Apartment List.

Fort Worth's median two-bedroom rent of $1,120 is below the national average of $1,170. Nationwide, rents grew 2 percent from 2017 to 2018, Apartment List says.