Will the Dallas-Fort Worth real estate market keep its run in the new year?

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Almost two years after the start of the pandemic, the booming North Texas real estate market will seek an even stronger recovery in 2022.

Home sales and apartment rentals have already reached record levels as the new year approaches. And most commercial real estate sectors are rebounding.

Colliers International has just named Dallas-Fort Worth as the nation’s # 1 real estate market for the New Year. The commercial real estate company said D-FW led the sales volumes of real estate investments in the United States in 2020 and 2021.

“The main factor that has helped our survey respondents choose Dallas-Fort Worth as their top market for 2022 are the many investment opportunities,” said Colliers International research director Aaron Jodka. “D-FW is one of the most important logistics centers in the country and, with the industrial being the main investment target overall, the metroplex stands out. “

Jodka cited investment opportunities in the metropolitan area’s strong multi-family market – “the asset class with the highest overall sales volume nationwide” – as well as the continued growth in population and employment, the engine of office and retail growth.

With the accelerated growth of e-commerce during the pandemic, the construction of warehouses and distribution spaces in D-FW is reaching record levels and is expected to grow in 2022.

Office building activity in North Texas and across the United States is accelerating as more and more employees move from working at home to the office.

Ryan Severino, chief economist at commercial real estate firm Jones Lang LaSalle, said the commercial real estate market is rebounding from the pandemic downturn at a faster pace than after previous declines. The region saw a 60% increase in commercial building starts in November, according to Dodge Data & Analytics.

“The industry continues to push further into expanding territory with record vacancy rates and strong rental growth,” Severino said in his 2022 forecast. “Retail and multi-family housing continue to grow. recover with generally declining vacancy rates and increasing rents.

“The office has yet to achieve stabilization, which is likely to happen in 2022, but the pace of deterioration has slowed, offering hope for the future.”

Even the hotel market – one of the commercial real estate sectors hardest hit by COVID – is heading towards pre-pandemic levels.

According to the latest estimates from Source Strategies, hotel revenues in the Dallas area have nearly doubled from 2020, but are still about 8% lower than they were before the pandemic.

“Many Texas markets saw impressive rebounds in the second and third quarters of 2021, but some business-dependent markets continue to lag,” Source Strategies president Todd Walker said. “Dallas-Fort Worth metro revenue will likely return to 2019 levels by the end of 2022, but the continued addition of new offerings during the pandemic will lead to a drop in occupancy and revenue per available room throughout. of the year.”

Walker said he doesn’t see revenue per available room – an important metric in the hospitality industry – return to 2019 levels in D-FW until 2023.

“Downtown markets that typically rely on business, group and convention travel will be slower to rebound,” Walker said.

The North Texas domestic market is at an all time high, with sales and prices of single-family homes expected to rise further in 2022.

The National Association of Realtors has included D-FW among the US metropolitan areas where home price appreciation is expected to overtake the rest of the country in 2022. San Antonio also made this list.

“The housing industry has performed spectacularly in 2021 in many markets, with huge gains made in places like Austin, Boise and Naples,” Realtors chief economist Lawrence Yun said. “Several markets did reasonably well in 2021, but not as strong as the underlying fundamentals suggested. Hence, in 2022, these hidden gemstone markets have more room for growth. “


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