Dallas-area home rental costs are through the roof
Dallas-area home rental costs are outpacing the rest of the nation.
The cost of renting a single-family home in Dallas was up almost 15% in the latest survey by researchers at CoreLogic. The median Dallas-area rent for a house was almost $1,900.
Nationwide single-family home rental rates were 11.5% higher than in November 2020, according to the new report. “Annual rent price growth has continued to double and even triple in the last several months,” CoreLogic analysts say.
Dallas area rents for all types of housing have soared in the last year because of severe shortages.
“Improvements in the economy and job market have helped push single-family rent growth to record levels,” Molly Boesel, principal economist at CoreLogic, said in the new report. “However, rapid increases in single-family rents, especially for lower-priced properties, have led to a continued erosion of affordability.”
Single-family rentals have become increasingly popular housing options for many urban residents who have been priced out of homeownership.
Miami had the highest year-over-year single-family rent increases among the 20 major metro areas CoreLogic surveyed. Phoenix had the second-highest annual rent increase of 19.5%, and Las Vegas home rents were 16.7% higher.
Home rents in the Houston area were only 10% higher than they were a year earlier.
While single-family rents are moving up, the cost of renting an apartment in the Dallas-Fort Worth area has increased even more.
A shortage of apartments and higher construction costs fueled a more than 17% increase in average D-FW apartment rents last year — surpassing the nationwide rise of 14.4%, according to RealPage.
Less than 3% of D-FW apartments were vacant at the end of 2021.
Because of the demand for single-family rentals, builders in North Texas are planning dozens of new neighborhoods of rental houses in the suburbs.