Dallas Market Long Term Forecast

[Nicolas Uribe]

Hi all.

I cant quite  understand the DFW  market. In demographic terms,  Uhaul data showed DFW as #1 destination, job growth, right after NV..  Data says - a bullish market, however, when I look at properties and rents, cap rates are so low, and  a lot of rental inventory.. Can someone explain this dichotomy ?   Is supply overpassing demand ? 

[Jacob V.]

Cap rates are going to take longer to correct and rents are flat to slightly lower YoY.

Too much goes into rents and cap rates to be able to point to one thing - but if you compare it to somewhere like Austin (or any recently booming city) it's not seeing the big dip in prices or rents afflicting other markets where tons of supply is coming on AND demand is slowing.

I would call it a leveling currently as opposed to supply outpacing.