Things are looking good for Dallas renters, according to Abodo’s year-end rent report. Dallas' relatively flat rents actually took a bit of a dip in 2018, and no major increases are on the horizon.
The report reveals that in 2018, the average Dallas one-bedroom unit was $1,160, down 0.86 percent, and two-bedroom units averaged $1,529, down 1.11 percent year-over-year. The key factors? A high supply of apartments and a strong economy.
Texas apartment boom
Last year, Texas' average rents increased by only 0.11 percent, mirroring what is happening in Dallas.
In many Texas cities, apartment construction ground to a quick halt in 2009 with new projects shelved as the recession dried up financing possibilities. Beginning in 2011, as credit finally began to loosen, Texas apartment construction was revived, and major areas like Dallas and Austin are now feeling the effects of numerous units appearing on the market at the same time.
Apartment supply spikes naturally take a while to present themselves, but as money is still flowing, we see no sudden decrease in available units, meaning no shortage of supply.
Texas has always been a boom-or-bust oil state, but as of early January, it looks like oil may have steadied itself. From a low of around $42 per barrel, oil has bounced back to around $52 per barrel. Additionally, West Texas producers have continued to cut production costs, and Exxon now says it can make money with oil at $40 per barrel.
With oil flirting with the magic $50 mark, West Texas should be okay, and that translates to a healthy Dallas economy. In fact, Plano was just named the seventh best city for job seekers, with Dallas at No. 26.
With a strong economy and abundant apartment supply, the trend toward rent stability continues in Texas, with the state's average rent increasing by only $4 in January 2019 from the level of $900 in December 2018.
In Dallas, January one-bedroom rent clocks in at $1,094, and a two-bedroom unit runs $1,430. This is a slight increase from December 2018, but the figures are still lower than the city's average rents for 2018.
However, renters should expect to pay a premium in some popular areas. According to Abodo's data, the priciest Dallas neighborhoods for one-bedroom rentals were Preston Hollow East: $2,900; Highland Park: $2,750; Brookshire Park: $2,195; North Oaklawn: $1,885; and Caruth Hills: $1,880.
Those looking for a steal should consider northeast, southern, and southeast Dallas.