Strange change in North Texas / North Dallas rental demand

[Keith A.]

Any other investors in this area having problems getting their rentals leased? In 15 years I've never had a property take more than 2 weeks to rent. Going over a month with a property that is priced well (although demand may be dropping), and showings are far and few between. MLS shows quite a few other properties in this area with price drops. A year ago this property rented in days for same price it is now. Reassessing my current rental amount, but seems a major cooling off is occurring in the area north of Dallas. Anyone seeing this?

[Bruce Lynn]

I think there are a few dynamics.....investors continuing to buy and putting out more inventory.....STR owners getting crushed and turning to LTR....people who would normally sell, but have 3% interest rate turn it into investment property vs selling....maybe also a bit of declining credit quality ...higher credit card debt, less savings makes people think they won't qualify, so when they normally would have moved, don't want anyone checking credit. Almost every rental I've had this year, the potential tenants call and ask what are the guidelines/criteria to rent. Never had so many ask before. Also might be that they have student loans issues after covid. Also for the first time over the past year have seen more friends and family moving in together to try to save rent....mom and two adult kids....etc...3 incomes contributing towards rent.

Right now we also may have some people worried about jobs.....if they're worried, they don't move.  First time in long time people know people or have seen in their own company people getting laid off.