Multifamily Market Spotlight: Dallas, TX

As the CEO of Blue Lake Capital, I am constantly seeking markets that offer robust growth potential and strong economic fundamentals. Based on the 2024 Market Intelligence Report by Marcus & Millichap there are a number of compelling insights into why Dallas is an exceptional market for multifamily investments.

Why Dallas Stands Out

The Dallas market continues to impress me with its dynamic and resilient economy. The city’s consistent job growth and the influx of businesses relocating to the area create a fertile ground for multifamily investments. This economic vitality translates into a steady demand for rental housing, which is crucial for sustaining long-term investment returns.

Key Trends Driving the Dallas Market

1. Rapid Population Growth: Dallas is one of the fastest-growing metropolitan areas in the United States, with a population increase of 2.3% over the past year. This growth is driven by young professionals and families attracted to the city's vibrant job market and high quality of life. This sustained population influx supports strong rental demand.

2. High Demand and Absorption Rates: The Dallas-Fort Worth (DFW) area led the nation in apartment completions over the past 12 months, delivering 33,127 units. Despite the high volume of new units, the demand remains robust, with 7,260 units absorbed in Q1 2024 alone. This high absorption rate is a testament to the strong demand for multifamily housing in Dallas.

3. Stable Occupancy Rates: Occupancy rates in Dallas are stabilizing. As of Q1 2024, the occupancy rate stood at 92.6%, with Class A properties maintaining the highest occupancy rates at 93.3%. These figures indicate a healthy rental market with sustained demand for high-quality properties.

4. Positive Rental Outlook: Although there was a slight decline in average monthly rent from $1,526 in Q4 2023 to $1,515 in Q1 2024, the rental outlook for Dallas-Fort Worth anticipates a recovery. Rents are expected to increase slightly above 1% by the end of 2024 and near 3% by 2025. This expected growth in rental rates makes Dallas an attractive market for long-term investments.

5. Promising Submarkets: Areas such as Frisco/Prosper and Allen/McKinney are experiencing rapid growth due to the ongoing population boom in Collin and Denton Counties. These submarkets have absorbed a significant share of market demand, presenting lucrative opportunities for investors both in and near these respective markets.

6. Decreasing Construction Activity: The report notes a decrease in construction activity, with 68,418 units under construction as of Q1 2024, down from previous years. This tapering of new supply is expected to aid in the recovery of vacancy rates and rent stabilization in the coming years.

Our New Deal in Addison/Plano

At Blue Lake Capital, we are always looking for opportunities to leverage these market dynamics. I am excited to announce our latest deal in the thriving Addison/Plano area of Dallas. This region is known for its strong economic growth, excellent infrastructure, and high quality of life, making it a prime location for multifamily investments. To learn more about this offering, or investing with Blue Lake, schedule a call with us here.

Final Thoughts

Dallas continues to be a standout market for multifamily investments. Its robust economic fundamentals, high demand, and promising rental outlook make it an ideal location for long-term investment. As the CEO of Blue Lake Capital, I am committed to capitalizing on these opportunities to deliver value to our investors.

For those interested in learning more about our new deal in Addison/Plano or exploring other investment opportunities in Dallas, please feel free to reach out. We are here to help you navigate and succeed in this dynamic market.

P.S. If one of your priorities, like mine, is building and preserving your wealth through multifamily real estate investments, click here to download my new eBook: The Ultimate Guide to Creating & Preserving Your Wealth.

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Invest With Blue Lake Capital

If you are an accredited investor interested in learning more about passively investing in multifamily properties, click here to complete our investor form and schedule a call with our Investor Relations team.

About Ellie Perlman

Ellie Perlman is the founder of Blue Lake Capital, a commercial real estate investment firm specializing in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.

A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificial intelligence throughout the course of all acquisitions and asset management. This advanced technology enables the company to produce accurate and data-driven forecasting for all assets on a market, property, and even tenant basis. In doing so, Blue Lake is able to lead commercial investments with the full capabilities of today’s technology.

Ellie is the founding host of REady2Scale, a podcast that highlights the assets, processes, and strategies for the multiple approaches to successful real estate investing.

She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.

Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.

You can read more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.

*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.