January 2025 Newsletter

Welcome to the January 2025 edition of our newsletter. This month, we share two relevant data points that we are monitoring: new housing supply and job growth trends in Dallas-Fort Worth.

Dallas-Fort Worth Housing Supply

According to an article published by the Dallas Business Journal on January 10th, 2025, North Texas new home starts fell in the final three months of 2024. Finished vacant housing inventory continued to climb during the fourth quarter of 2024. By year-end, there were 11,264 finished empty homes in DFW — a quarterly increase of 1,043 units, or 10.2% up from the end of the third quarter. Elevated interest rates are a likely culprit. As of the date of the article, the average rate of a 30-year fixed mortgage was 6.93% according to Freddie Mac.

This phenomenon may continue to bolster the rental market as an unintended consequence. Although Q4 is historically a slower absorption period for leasing activity, Common Ground Capital's portfolio's occupancy level rose year-over-year.

Dallas-Fort Worth Job Growth

The Dallas Business Journal published an article on January 9th, 2025, stating that Dallas remains the number one city for corporate relocations according to Site Selection Magazine. Rankings by state put Texas 4th after Georgia, North Carolina and South Carolina.

As the cost of living and housing in DFW rises, secondary submarkets surrounding are becoming attractive to the general public. According to an article published by John Burns on January 17th, 2025, 43% of BTR residents said they would move for lower rent. This may be why other states mentioned above are becoming competitive with Texas for relocations.

According to the Bureau of Labor and Statistics, over the 12-month period ending in November of 2024, DFW experienced an increase of 64,500 nonfarm jobs, representing a 1.5% growth rate. Texas added 327,400 nonfarm jobs over the preceding 12 months ending September 2024. Continued job growth in DFW will support future demand for housing.