September 23, 2024

Source: Costar Group

The Dallas—Fort Worth multifamily market is experiencing a notable slowdown in new construction. Currently, 43,000 units are under development, a significant decline from the peak of 64,000 units reached in 2023. This drop is attributed mainly to rising finance costs following interest rate hikes in 2022 and 2023.

Considering Federal Reserve Chairman Jerome Powell's recent announcement regarding a ½ percent reduction in interest rates, the question now arises: will this shift lead to a reversal of the current downward trend in new construction units? Stay tuned for updates.