New Construction Deliveries Continue Their Torrid Pace
It’s been more than six months since checking in on the Greater Fort Worth new construction pipeline. Deliveries have continued to outpace recent years, and projects continue to be added to the overall pipeline almost at the pace of completions.
Recent Deliveries
About 4,300 units have been delivered across Greater Fort Worth since the start of the year. This level of new supply significantly outpaced both the 2,800 new units delivered in the first eight months of 2020 and the 3,100 new units delivered during the same portion of 2019. Apartment demand has more than made up for the increase in new supply, with net absorption through August nearly triple that from last year and more than double the total from the same period in 2019. That level of demand has pushed average occupancy up by 2.8% to close August at approximately 93%.
10 of 12 Greater Fort Worth submarkets have added units so far in 2021, led by the almost 1,000 new units in the Denton – Corinth submarket. Aside from Denton – Corinth, new development so far this year has predominately been focused in the centrally located submarkets of Fort Worth. North Fort Worth has added roughly 700 new units while the South Fort Worth region of the market has delivered more than 500 new units.
Units Under Construction
Projects identified as being under construction rather than in some other stage of the pipeline are projects that are being built but not yet leasing. Just over 7,700 units ended August in this phase of the pipeline, representing 28% of total pipeline units.
With nearly 2,300 units under construction, South Arlington leads the way in terms of units in this phase of the pipeline. Central Fort Worth, with around 1,600 units currently under construction, and North Fort Worth with about 1,100 units being built round out the top three.
All told, nine of the 12 Greater Fort Worth submarkets ended August with new units under construction, down slightly from earlier this year.
Takeaways
Dallas – Fort Worth has been the most active market in the country over the last handful of years when it comes to new supply, and that dynamic will not be changing any time soon. The Greater Fort Worth side of the metroplex has lagged the Greater Dallas side in volume, but the area continues to ramp up deliveries and add units to the pipeline at almost the pace of deliveries. In total, more than 27,000 units were in the pipeline at the end of August, with about one-third of those units being in a pre-construction phase.
Like many markets around the country, net absorption so far in 2021 has significantly surpassed new deliveries. This, combined with strong population growth and the fact that approximately one-third of pipeline units remain in a pre-construction phase portends well for the Greater Fort Worth multifamily market.
Jordan Brooks
Senior Market Analyst – ALN Apartment Data
Jordan@alndata.com
www.alndata.com
Jordan Brooks is a Senior Market Analyst at ALN Apartment Data. In addition to speaking at affiliates around the country, Jordan writes ALN’s monthly newsletter analyzing various aspects of industry performance and contributes monthly to multiple multifamily publications. He earned a master’s degree from the University of Texas at Dallas in Business Analytics.
