The multifamily sector in major Texas markets remains well-positioned to thrive as the state’s economy expands at a solid pace. It still has 12 to 18 months of solid growth ahead of it, according to multifamily developers, operators and lenders operating in the state.
State employment, year to date, has grown at a 3.6% annualized rate, driven by job creation in the manufacturing sector, according to the Federal Reserve Bank of Dallas’ most recent Beige Book report.
Growth has been broad-based across the state’s major metro areas, with Houston most recently leading the way and Austin and Dallas-Fort Worth with respectable gains, although the Fed noted the apartment market had softened slightly.
“Dallas is the bell cow,” Milestone Management President Steve Lamberti said at Bisnow’s Multifamily Annual Conference South in Dallas Thursday.
The diverse and growing workforce in Dallas-Fort Worth — 120,000 jobs created in the past 12 months — has generally resulted in solid demand for a wide swath of multifamily product from affordable apartments to luxury units, CoStar Group Senior Market Analyst David Kahn said.