New Construction in Greater Fort Worth
Unlike many markets around the country, the Greater Fort Worth area has added more new units so far this year than at the same point last year and has also absorbed more units. Using conventional properties of at least 50 units, let’s take a closer look at both recent deliveries and projects currently under construction.
Just over 4,000 new units were added in the Greater Fort Worth market through July of this year, up from around 3,000 units during the same period in 2019. Net absorption also rose compared to last year, though by about 500 units rather than the 1,000-unit difference on the supply side.
With almost 1,300 new units, Central Fort Worth has been the area with the most new supply delivered so far this year. Average occupancy for the area slid 1.9% to a little below 83%. Another area with a relatively high volume of new units this year has been the Grapevine – Roanoke – Keller region of the market. Just over 700 new units have been delivered there, and average occupancy gained about 1% to just over 84%. One other submarket with notable new supply was the South Fort Worth area, which added almost 650 new units. Average occupancy for the submarket fell by 1.3% to 90%.
Projects identified as under construction rather than some other category are projects that are being built but not yet leasing. There are currently almost 9,000 units under construction across Greater Fort Worth. These units represent about 30% of the overall construction pipeline with the largest category being projects still in a pre-construction phase.
Once again, the Central Fort Worth submarket leads the way here as well with just over 3,000 units currently under construction. The next most active areas are North Arlington and North Fort Worth with around 1,000 units currently being built. Though the largest plurality of current new construction is in the Central Fort Worth area, 80% of Greater Fort Worth submarkets have projects currently under construction.
Dallas – Fort Worth has been extremely active over the last handful of years when it comes to new supply. The Greater Fort Worth side of the metroplex has lagged the Dallas side, but the area continues to ramp up deliveries.
Unlike many markets around the country, Greater Forth Worth has not only added more new units so far this year than in the same period last year, but net absorption has been higher as well. Combined with the fact that almost 40% of the construction pipeline has yet to break ground, the area has more flexibility moving forward through uncertain times than many others.