Dallas area apartment renters are finally getting a break.
Not only are the big rent increases over, but more landlords are offering freebies to fill empty units
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In October almost 46%, of Dallas-area apartment properties were offering some kind of concession — usually a month or two of free rent, according to a new study by Zillow.
That’s one of the highest concession rates in the country where nationwide 30% of apartment landlords are having to provide giveaways to lure new tenants.
The share of Dallas rental properties with freebies has jumped from about 30% a year ago to 45.9% in October, Zillow says. The area saw the country’s largest increase in concessions between September and October.
Periods of free rent are most common at just-opened rental communities looking to attract residents. Stabilized D-FW area rental communities average only about 18% with concessions, according to RealPage.
Average apartment rents in North Texas are stable at just under $1,600 a month. But the newest units go for more.
Rental concessions are growing as a record number of new apartments hit the market across the U.S.
“The pandemic era’s increase in concessions was a direct response to decreased renter demand,” Zillow researcher Anushna Prakash said in the report. “Currently, we’re witnessing a different scenario where the demand for rental housing is high, but there’s been a notable rise in supply.
“To differentiate themselves from newer, potentially more amenity-rich apartment buildings, property managers are stepping up their game, offering more incentives to attract potential renters with a broader range of choices.”
Along with free rent periods, Dallas-area renters are getting other perks including upgrades in services and access to amenities.
The rise in local giveaways comes as more than 26,000 North Texas apartments are being added this year — the most of any U.S. metro area.
Nationwide, a record 400,000 additional rental units are opening.
With the huge increase in Dallas-Fort Worth supply this year, average apartment rents were down about 1% in the third quarter.
During the third quarter, net apartment leasing in North Texas totaled 7,247 units — the best of any U.S. market. But that fell short of the 8,170 apartments completed in the same period, according to RealPage.
More than 70,000 apartment units are under construction in the D-FW area.
Zillow’s new study found that 43 of the nation’s largest 50 metro areas are seeing more rental concessions compared to last year. The highest concession rates were in Salt Lake City, Utah, San Jose and Washington, D.C.
“Concessions in D-FW’s lease-up properties have started to increase in recent months,” said RealPage economist Carl Whitaker. “The past two months have seen the average lease-up concession tick up to one-month free rent.
“It wouldn’t be surprising to see concessions tick up a little more in 2024 as more supply delivers, but even then concessions don’t appear to be approaching all-time high levels that we saw back in 2009 and 2010″ during the Great Recession, he said. “Back then, more than three in four vacant units was offering a concession.”