Despite its historical dominance in apartment building, North Texas shows signs of a cooling market, as recent data from the US Census Bureau indicates an estimated 10.8% decrease in new permits within the year ending November 2023. Numbers reflect only 19,711 units permitted, a noteworthy decrease that aligns with national trends of a 21% contraction year-over-year.
The effects have not been localized to North Texas alone – many surrounding areas also experienced this decline. Austin displayed a 10.3% decrease summing to 20,866 permits, and Houston showing the most dramatic reduction at 36.1% with 17,827 permits offered.
The data hint that 2024 is projected to have 20% fewer apartment deliveries compared to the previous year, signaling an overall downturn in the real estate market’s multifamily segment. Nevertheless, these changes signify a unique opportunity for prospective home buyers and real estate investors, as current and forthcoming market conditions may present valuable openings unmatched by previous years.
The Yee-Haw Development Marketing Group continues to keep a close eye on these market trends, and we are committed to providing the latest updates to our valuable clients and readers.