Multifamily Supply Issues on Panelists Minds at Recent Connect Dallas Multifamily Event

At a recent Connect Multifamily event in Dallas, an experienced panel weighed in on how they assess the current market environment.

Tower Capital’s George Maravilla expressed a common belief about supply: “Yes, we’re overbuilt. The Sunbelt is oversupplied…but it feels like a temporary situation. There are a lot of vacancies, but the light at the end of the tunnel is that starts are way down.”

Bryan McNally, from Legacy Partners, agreed, saying, “While things are slow, they will ease in 2025 thanks to population growth, job growth and fewer buildings in the pipeline.”

Jason Haun, from ZOM Living, thinks there is one market niche that is doing better than others. “Workforce housing is popular in suburban towns that have seen the development of large employers. Sherman has TI, and there has been some success building there, as has El Paso, and Taylor with Samsung. San Marcos seems to be another good opportunity. You leave out some of the high-sheen extras to keep rents down and these areas should do well.”

Madera Residential Analyst Jay Parsons says that while things have slowed, “Dallas and Houston are the fastest growing areas of 20-34 year olds, the ones who rent apartments. As long as the premium to buy a house in DFW versus paying rent on an apartment stays at these levels, multifamily development in Dallas should outperform nearly every other metro area.”