People have been moving to North Texas in droves as companies seek to harness the gains of the state’s relative affordability and business-friendly environment. DFW’s real estate market, named by StorageCafe as the most active in the nation, is a testament to the Metroplex’s success despite challenges posed by the pandemic.
Between 2012 and 2021, DFW outpaced 50 other major U.S. metros in terms of combined new construction across all major real estate sectors, StorageCafe’s analysis found. In total, the Metroplex saw more than 556,000 permits issued for residential construction and close to 331M SF of new industrial, office and retail space.
Metros trailing DFW in the top five were Houston, New York, Phoenix and Atlanta. The report pointed to Dallas’ strong job market and healthy economy as major propellants.
“Not only did the pandemic not slow the market, but 2020 and 2021 saw the highest numbers of permits issued for new single-family homes in the entire decade — 44,000 and almost 50,000, respectively,” the report read.
DFW was not immune to the coronavirus pandemic, but it fared relatively well compared to other U.S. metros. According to the state’s comptroller, more than 1.4 million Texans lost their jobs during the pandemic, and sales tax collections declined across several major categories. Still, the state’s economy bounced back faster than others, in part due to the early loosening of restrictions. Earlier this year, the Texas Tribune reported that the state’s job market had rebounded from the pandemic and was now outpacing the rest of the country.
Multifamily construction is driving much of DFW’s growth. According to StorageCafe’s report, 27,000 new apartments were permitted in 2021, which is just below the Metroplex’s record of 28,000 multifamily permits issued in 2015.
DFW also topped the list for new industrial and self-storage construction in the nation, with about 228M SF and 23M SF delivered over the decade, respectively.
The population of North Texas is expected to more than double to 16.8 million people over the next 30 years, according to the North Texas Commission. David Eyzenberg, adjunct assistant professor at New York University, said states like Texas that have a track record of attracting new residents will be the biggest beneficiaries of new development.
“Development is usually fueled by population growth, which recently has been more about migration patterns versus immigration or birth rate,” Eyzenberg told StorageCafe. “States with pro-business regimes and less draconian lockdown rules will benefit from an influx of mobile workers, and development will follow.”
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