Dallas apartment prices rise slightly amid COVID-19, says new report
The pandemic has not put much of dent in Texas rental demand, according to new data from Abodo.
The online apartment marketplace says Texas' median one-bedroom apartment rent fell just $7 from April to June 2020, down to $1,012 from $1,019. Conversely, national one-bedroom median rents rose about 1 percent, growing slightly from $1,088 in April to $1,097 in June.
Dallas' second quarter one- and two-bedroom residential rental markets were up slightly, mirroring the national trend. One-bedroom units rose $15, from a median price of $1,169 in April to $1,284 in June. Two-bedrooms reported some interesting movement during the 90-day period, says Abodo, but they settled at $1,466 — a 1.5 percent increase from the April median price of $1,445.
Dallas is still holding its own, and many are optimistic that the North Texas residential rental market will remain stable even during times of increased COVID-19 infections. As a whole, the Texas residential rental market remains steady for several reasons:
- Amid the pandemic, many people are staying put and have put off moving plans for now.
- Some residents have had to sell homes they could no longer afford and have therefore entered the rental market.
- Landlords are reluctant to raise rents when collecting rent during COVID-19 can be an issue.
- Some new apartment developments have slowed or paused construction.
Overall, property managers and landlords are facing a new normal of life, specifically in this virtual world during the COVID-19 pandemic, Abodo explains.
But decreases in supply have offset instances of falling demand, and therefore, the market is stable right now. If the economy does not improve, construction financing could dry up quickly, and paused apartment construction may stay that way.
In the coming months, we may continue to see lessened demand tempered by smaller apartment supply, pointing to continued market stagnation. However, if the economy improves and apartment demand returns to normal, Abodo says, Dallas could see a more rapid rise in rent prices.