North Fort Worth, TX Multifamily Market Report
Dallas Fort Worth
By the Numbers
- Vacancy Rate: 10.8%
- Rent Growth: -1.2%
- Delivered Units: 40,713
- Sales Volume: $949M | Last 12 Months | Source: CoStar Group
Market Overview
Dallas-Fort Worth’s central location and low cost of business make it a hub for demographic metrics. Residents are drawn to the metro for its strong presence in the financial services and manufacturing industries. As of the 12 months ending August 2024, the metro’s employment metrics grew 1.4%, with construction jobs leading employment gains. The metro also saw an influx of 153,000 residents from 2022 through 2023, which made the metro stand out as the top spot for population growth nationally.
Market Performance
Absorption for multifamily units has begun to stabilize, with around 15,200 units absorbed during the first half of 2024. Three of the metro’s submarkets—Frisco/Prosper, Allen/McKinney, and North Fort Worth—notched one-third of apartment demand during the past year. Current absorption metrics outpace pre-pandemic levels, but high levels of construction are making it difficult for absorption to align with new supply. There are currently about 42,000 units under construction, which makes up 4.9% of the metro’s inventory. Most properties underway are Class A or B, with the metro’s northern submarkets seeing the most development activity.
Over the past 12 months, deal velocity has begun to slow, noting a total of $6.5 billion in sales volume. Similar to ongoing construction, several sales occurred in the metro’s northern submarkets. The largest sale this year occurred in February, with the James at Canyon Creek trading for $99 million, or $251 per square foot. This is a Class A property with 415 units located in the Plano submarket.
East Fort Worth
By the Numbers
- Vacancy Rate: 16.1%
- Rent Growth: 0.5%
- Sales Volume: $65.3M | Last 12 Months | Source: CoStar Group
Market Overview
This Fort Worth submarket is home to several blue-collar employees. Around 50% of households in the area are renter-occupied. However, with increased inflation metrics, demand has been weak here, leading to the current vacancy rate of 16.1%
Market Performance
Along with an increase in vacancy, the East Fort Worth submarket is seeing upticks in its supply levels. There are 670 units underway, which is the highest level the market has seen in 20 years. Two Class A apartment building are underway, with completion dates scheduled for 2025 and 2026.
Sales activity has also decreased in the submarket, with the majority of transactions over the past 12 months being repeat sales. During this timeframe, there have been five notable sales. The largest transaction for 2024 was Cobble Hill, a Class C complex that transacted for $12.5 million.
Hurst-Euless-Bedford
By the Numbers
- Vacancy Rate: 6.7%
- Rent Growth: 0.4%
- Sales Volume: $39.1M | Last 12 Months | Source: CoStar Group
Market Overview
With a convenient location near Dallas-Fort Worth International Airport and proximity to Dallas, Fort Worth, and Las Colinas, this submarket sees high levels of renter demand. Rents here are also lower than other DFW submarkets, with rents 20% below those in nearby Plano.
Market Performance
Due to the submarket’s popularity among renters, the area boasts vacancy at 6.7%, which is lower than DFW’s overall vacancy rate of 10.8%. There are also no units underway, aiding the balance between new supply and absorption. However, there have been 1,600 units delivered here in the past decade, but they were quickly taken up by renters. Sales activity has slowed down here also, with only five sales recorded in the past year. Class B properties have noted the most popularity as three of these transactions were for that class type.
Grapevine
By the Numbers
- Vacancy Rate: 6.1%
- Rent Growth: -3.5% | Last 12 Months | Source: CoStar Group
Market Overview
Many of DFW’s higher-earning residents reside in Grapevine, and the area also provides a strong location to many employers. Around 60,000 residents in Grapevine are employed by the airport, and the area also boasts many many attractions, such as Legoland Discovery Center. The Gaylord Texan also just expanded its hotel and convention center here, which will further attract visitors to the submarket.
Market Performance
There have been 97 units absorbed over the past 12 months, which is lower than the historical average of 219 units. Construction in Grapevine has begun to slow down, with new developments being sought out near the new TEX rail station and the nearby Grapevine Mills Mall. The Class B 3111 Sunset apartment complex is one example of construction targeting this area, with the property set for completion in January 2025.
Sales activity has also slowed here, due to the financing environment. There has only been one sale in 2024, with Equity Residential purchasing the Tailwinds Grapevine property from Greystar. The sale price was not disclosed, but the apartment facility is in the Class A sector, and is made up of 324 units.
North Richland Hills/Haltom City
By the Numbers
- Vacancy Rate: 8.5%
- Rent Growth: -0.4% | Last 12 Months | Source: CoStar Group
Market Overview
Employment opportunities in this submarket are driven by the retail, healthcare, and manufacturing industries. Some major employers for residents here include Birdville Independent School District, Walmart, and Medical City North Hills. The NRH20 Family Water Park is also located here, attracting visitors to the submarket.
Market Performance
Class A properties have noted the highest levels of absorption, with 151 out of 300 absorbed units over the past 12 months belonging to this class. While there is no construction underway, future supply is expected to target the western areas of the submarket. The most recent delivery of the Delegate at City Point also contributes to demand for Class A properties, with this property adding 352 Class A units to the market.
North Fort Worth
By the Numbers
- Vacancy Rate: 11.4%
- Rent Growth: -1.2%
- 12-Month Absorbed Units: 1,723 | Last 12 Months | Source: CoStar Group
Market Overview
North Fort Worth’s economy is driven by its high amount of industrial space. Alliance has a strong presence in distribution and logistics here, drawing employees to this segment. Retail properties are also prevalent, and the most recent retail delivery added 1 million square feet at Alliance Town Center.
Marker Performance
Although the market has absorbed 1,700 units over the past 12 months, the absorbed units have not been able to keep up with new supply. There were 1,900 units delivered, which led to the current vacancy rate of 11.4%. Most absorption has occurred in northern parts of the submarket, due to the high levels of residents moving here.
Despite recent deliveries, construction activity is cooling. There are currently 1,100 units underway, and the low levels are due to financing struggles for the cost of new construction. Sales volume has also slowed down, with only four trades over the past year. Mid-tier properties and below traded most frequently, due to the higher pricing of Class A assets here.
Lewisville/Flower Mound
By the Numbers
- Vacancy Rate: 9.0%
- Rent Growth: -0.7%
- Sales Volume: $105M | Last 12 Months | Source: CoStar Group
Market Overview
The Lewisville/Flower Mound submarket draws residents for its education opportunities and convenient location near many highways. There are also two light rail stations in the area that connect Lewisville to areas like Denton and Carrollton. The ease of commuting from the submarket makes it popular among residents.
Market Performance
With 1,300 units absorbed over the past year, vacancy has stabilized, but new supply is still greater than absorption levels. There have been 1,805 units delivered during the timeframe; yet, absorption is expected to balance with new supply as strong renter demand continues in the submarket.
Once new supply resumes, it will target the area surrounding Old Town Station. The City of Lewisville is seeking new developments here as part of an initiative to make this area walkable. The Whitlow, which is currently underway in this location, will add 420 units upon completion.
Northwest Fort Worth
By the Numbers
- Vacancy Rate: 15.0%
- Rent Growth: -1.0%
- 12-Month Absorbed Units: 1,798 | Last 12 Months | Source: CoStar Group
Market Overview
The submarket stands out with its access to areas like West 7th, the Cultural District, and Sundance Square. Many employers are also located here, with Lockheed Martin adding 2,000 jobs to the market in recent years.
Market Performance
New supply has not balanced with absorption, with 2,200 units delivered over the past 12 months and 1,800 units absorbed during that timeframe. The pressure on absorption is expected to continue as there are still 2,800 units underway. Most recent deliveries have occurred in Downtown Fort Worth, but new deliveries are targeting areas beyond Loop 820.
Sales activity has slowed here, with 11 trades noted over the past year. These trades have been made up of a mix of class types, but the majority of transactions have been for Class B and C properties.
Downtown Fort Worth
By the Numbers
- Vacancy Rate: 13.3%
- Rent Growth: 0.9%
- 12-Month Absorbed Units: 232 | Last 12 Months | Source: CoStar Group
Market Overview
With attractions like Sundance Square and Bass Performance Hall, this submarket provides residents with various entertainment options. While this is a relatively small area compared to other submarkets, residents are still drawn here by its attractive location to other submarkets.
Market Performance
Vacancy remains high here, due to new supply outpacing absorption. There were 300 units added here over the past year, while 230 were absorbed. However, development activity has begun slowing down. The latest development, Deco 969, was completed in April. This added to the Class A supply in the submarket, with 302 new units.
Denton
By the Numbers
- Vacancy Rate: 12.5%
- Rent Growth: -1.6%
- 12-Month Absorbed Units: 1,396 | Last 12 Months | Source: CoStar Group
Market Overview
Denton’s strong university presence is a boost for renter demand. With two universities here—the University of North Texas and Texas Woman’s University—many students rely on the multifamily market for housing instead of living on campus. Also, Denton County has ranked among the fastest-growing counties in the Metroplex over the past decade.
Market Performance
Deliveries have risen over the past two years, which has led to the current vacancy rate of 12.5%. Demand has struggled to balance with the new inventory, as 1,400 units were absorbed while 2,100 units were delivered. This imbalance is expected to continue with 2,900 units still underway. Most of the new developments are targeting areas near Interstate 35E and eastbound Highway 380.
There have been 10 sales throughout the past 12 months, with six trading so far in 2024. Smaller properties are favored in the area as trades have most frequently targeted smaller complexes.
