DFW supply vs. demand

Written September 24th, 2014 by

How does DFW supply compare with demand (absorption)?  Are we overbuilding?

Here is an interesting set of articles from MPF Research:

DFW Summary

    • 4.9% of current supply is under construction
    • 2.1% three-year average absorption rate (i.e. rate of additional units being occupied)
    • I.e. would take 2.3 years to absorb new supply that is coming on-line, if absorption stays constant

But, Dallas job growth is anticipated to be ~2.5-3% this year.  Thus, the supply doesn't seem to be very worrisome yet.  However, it depends on how much supply continues to come online.  Population and job growth in Dallas is starting to slow down, so if construction continues to ramp up over the next few years, oversupply could become a concern.

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