Middle-Market Apartments in Fort Worth Post Big Rent Growth

October 29, 2013 by Gregg Willett 

Fort Worth, which very rarely makes the list of the country’s stronger apartment rent growth performers, is logging impressive numbers right now. Annual price increases for new leases reached 3.9% as of 3Q, topping the national norm of 3.2%.

The key story in Cowtown’s strong momentum lies in middle-market product, particularly the metro’s very large base of 1980s-era units. These communities posted rent growth averaging 5.0% during the past year. In the submarkets where this 1980s-vintage product niche is especially large, rents went up 6.9% in Southwest Fort Worth, 5.3% in Arlington, 4.1% in East Fort Worth, and 4.0% in Hurst/Euless/Bedford.

Healthy employment growth at all wage levels has generated enough apartment demand for the middle-market product sector to reach essentially full occupancy. And the residents of these developments generally don’t make enough to afford home purchase or to lease upper-tier apartment product. For comparison, the metro’s monthly rents of $675 in the 1980s-generation product segment are about $300 under the rates for projects built in the 1990s and almost $400 under the norm for developments built since 2000.

Stellar rent growth in middle-market properties, especially in those located in key suburbs, actually is a pattern seen in almost all of the country’s metros where the individual economies are performing well across many industry categories. The stats stand out a bit more in Fort Worth than in some other metros simply because middle-market product forms a larger share of total inventory in Fort Worth than in lots of other spots.



This entry was posted in 2013, Dallas- Fort Worth, Rents, Texas. Bookmark the permalink.

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