411 for renters

2 North Texas cities rank among best places to find new apartments in 2023

Every apartment complex must have a great pool.

Photo by Flood Photography, courtesy of Greystar Properties

Renters seeking new apartments could have the best luck finding their new home in two Dallas suburbs, a new study says.

RentCafe has named Frisco and McKinney as the fourth and fifth best cities for finding new apartments in 2023, respectively. The apartment listing service ranked the top 50 U.S. cities for finding new apartments by analyzing the number of new apartments opened in the last 10 years, how large they are, the most recent occupancy rate, and the quality of neighborhoods where they are located.

The RentCafe report notes that apartment buildings are almost full in every metro area across the U.S., meaning renters have a higher chance of finding available apartments in newly built communities.

So, what made Frisco and McKinney stand out?

Over the last 10 years, Frisco has seen a 194.7% increase in new apartments, according to the study. The city also boasts a 92.9% share of new apartments in top locations and an occupancy rate of 95.1%. The average apartment size in Frisco is 933 square feet.

Frisco is also one of the fastest growing cities in the U.S., thanks to its “booming economy, amazing sports scene, countless entertainment options, proximity to the great outdoors and high safety rating,” the study says.

As for McKinney, the city has increased its new apartments by 111% in the last 10 years and has 90.5% of its apartments in top locations. The average apartment size is 918 square feet, and 94.1% of McKinney apartments are occupied.

Much like Frisco, McKinney has “a thriving economy, great quality of life and high-paying job opportunities in various industries,” the study says.

Texas cities dominated the ranking with 12 cities in the top 50, six of which made it into the top 10. In addition to Frisco and McKinney, the cities of Midland (No. 2), Humble (No. 3), Spring (No. 8), and Katy (No. 10) also made it to the top 10.

Boca Raton, Florida took the No. 1 spot in the survey.

No. 2-ranked Midland, which is part of the Permian Basin area, saw a 56.8% increase in new apartments. About 40.7% of the city’s apartments are in top locations, and the average size of new apartments is 913 square feet. Meanwhile, about 81.8% of the apartments are occupied.

In the Houston suburb of Humble, which ranks No. 3, there has been a 45.2% increase in new apartments over the past decade. The occupancy rate is 91.1%, and the average size of new apartments is 925 square feet. About 78% of new apartments are in top locations.

Humble’s suburban location and proximity to Houston could be what entices renters to move to the “hidden gem,” the study says.

Also a Houston suburb, No. 8-ranking Spring boasts an occupancy rate of 94.5% and an average apartment size of 947 square feet. New apartments have increased 112.4%, and 48% of new apartments are in top locations.

Spring has seen substantial growth, mostly thanks to ExxonMobil’s 2011 decision to build a campus there and expand its operations in Texas. While the campus was being built, many ExxonMobil employees relocated from Irving to Spring.

The tenth best city and another Houston suburb, Katy, has seen a 123.2% increase in new apartments. About 44.9% of those apartments are in top locations, and the average occupancy is 94.9%. The average size of new apartments is 951 square feet.

Katy offers “the best of both worlds” to many renters: small-town charm and big-city amenities. The city’s highly rated schools and major employers contribute to its success. Also, Katy is a popular retirement spot because of its health care facilities and recreation centers.

Elsewhere in Texas, the top 50 included a mix of bigger cities, college towns, and suburbs:

Round Rock, No. 22
Increase in new apartments: 36%
Share of new apartments in top locations: 91%
Occupancy: 92.6%
Average size of new apartments: 895 square feet

Richardson, No. 25
Increase in new apartments: 79.5%
Share of new apartments in top locations: 96.5%
Occupancy: 95.7%
Average size of new apartments: 877

College Station, No. 31
Increase in new apartments: 49.6%
Share of new apartments in top locations: 19.9%
Occupancy: 94.4%
Average size of new apartments: 1,039 square feet

Houston, No. 35
Increase in new apartments: 20%
Share of new apartments in top locations: 63.9%
Occupancy: 89.9%
Average size of new apartments: 929 square feet

Conroe, No. 36
Increase in new apartments: 85.4%
Share of new apartments in top locations: 30%
Occupancy: 95.1%
Average size of new apartments: 935 square feet

Plano, No. 42
Increase in new apartments: 27.4%
Share of new apartments in top locations: 92.7%
Occupancy: 93.3%
Average size of new apartments: 905 square feet

REAL ESTATE NEWS

Nearly half of Dallas home sellers are slashing prices amid buyer’s market

Photo by Dillon Kydd on Unsplash

Nearly 58 percent of San Antonio home sellers dropped their list price in February

Prospective home buyers in Dallas may want to seal the deal this spring. According to a new Redfin report, nearly 47.3 percent of home sellers in the city dropped their list price in February.

Two other Texas cities clocked ahead of Dallas: In Austin, the number was 55.2 percent, and in San Antonio, it was an eye-popping 57.9 percent — the highest share among the 50 most populous regions in the U.S.

According to the real estate marketplace, Texas’ dominance on this list isn't coincidental. Along with Florida, the state has been building more homes than anywhere in the nation, giving prospective buyers more options and bargaining power.

Nationwide, 34.2 percent of February home sellers cut their asking price, a 31.5 percent rise from a year earlier and the highest share ever since Redfin began tracking markets in 2012. The average cut was $40,915, approximately 7 percent of the original sticker price.

Redfin attributes the discounts to a classic supply-and-demand imbalance. High mortgage rates combined with economic uncertainty have kept buyers on the fence while sellers continued to flood the market with new homes. The company speculates that the real rate of cuts may be higher since it does not account for delisted properties.

“A lot of people who couldn’t sell their homes last year opted to delist instead of reducing the price, with a plan to relist this spring because they knew that would give them a better chance of selling,” says Redfin real estate agent Aditi Jain, via a release “Some homeowners need to move immediately, but those who can afford to time the market may get a better price.”

Redfin says that spring consistently produces the lowest share of price cuts, with May having the lowest share in six of the past 10 years, and April taking the title in three others.

Sellers who closed in December faced the highest likelihood of cutting their price. Sellers who have owned their homes longest are also better protected from market fluctuations.

Owners who have lived in their homes for at least seven years cut prices at a rate of 31.8 percent, compared to 37.4 percent for those who have owned for two years or less. More recent buyers who purchased their homes at the height of the pandemic boom are now reluctant to accept what the market will actually bear.

The five U.S. cities with the highest shares of cut listing prices are:

No. 1 — San Antonio, Texas (57.9%)
No. 2 — Austin, Texas (55.2%)
No. 3 — Dallas, Texas (47.3%)
No. 4 — Tampa, Florida (45.9%)
No. 5 — Fort Lauderdale, Florida (44.9%)

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