Dallas/Ft. Worth Multifamily Housing Market

FOR IMMEDIATE RELEASE

Contact:
Kathryn Koepke
Manager, Market Research
koepke@poconnor.com
713-375-4239

Scott Sherrill
Director of Marketing 
ssherrill@poconnor.com
713-375-4264 

Houston, TX (August 2, 2007)- While homeowners lose their homes to foreclosure at the highest rate in recent history, the multifamily housing market is reaping the benefits. In particular, Class B and C properties are seeing higher occupancy levels in the past two quarters in the Dallas/Ft. Worth metroplex.

This is according to the second-quarter Dallas/Ft. Worth Apartment Market Update report by O'Connor & Associates, the Houston-based real estate consulting firm and leader in apartment market research data in Texas. The report tracks the growth of apartment living in the Dallas/Fort Worth metroplex.

Dallas/Fort Worth area apartment second-quarter occupancy finally rose to above 90 percent for the first time since the third quarter of 2006, finishing at 90.02 percent. All classes posted quarterly occupancy increases, with Classes A and D seeing the most improvement. At 92.24 percent, Class A occupancy is up 0.27 points over the quarter and 0.26 points over the year. Class B occupancy gained 0.02 points over the quarter to 91.61 percent, but is down 0.35 points over the last 12 months. Class C market reported a 0.13-point quarterly gain to 87.39 percent, which is 0.45 points below last year's figure. The Class D market recorded the largest quarterly gain in occupancy, increasing 0.94 points to 85.58 percent. The highest occupancy levels were in Azle at 98.23 percent, followed by Granbury at 95.00 percent. Downtown had the lowest occupancy rate again at 77.56 percent.

Overall absorption during the quarter totaled 2,628 units, the highest quarterly figure since the third quarter of 2005. All classes of property posted positive absorption numbers this quarter. Class A properties absorbed 1,597 units, up from last quarter but still down for the year. Class B properties absorbed 519 units, up from last quarter and for the year. Class C properties absorbed 107 units and Class D properties absorbed 405 units.

Rental rates continued to rise for the second straight quarter. At $0.877 per square foot (psf), overall rental rates were up $0.004 psf over the quarter. Class A properties showed a $0.007 increase and averaged $1.079 per square foot; Class B rent rose $0.002 psf to $0.857 psf; Class C increased another $0.001 psf to $0.774 psf; Class D rents gained another $0.003 psf to $0.713 psf.

Dallas/Ft. Worth has a total of 2,503 operating or under-construction projects greater than 25 units with a total of 562,899 units. Class A properties make up 29 percent, Class B make up 35 percent, Class C make up 28 percent and Class D make up eight percent.

For a complete report on the Dallas/Fort Worth apartment market, visit http://www.poconnor.com/apartment_market_update/dallas_2Q_2007.html. The report measures demand (absorption), occupancy, rates and apartment inventory.

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ApartmentLink is your best source for apartment market data in Houston, Dallas/Ft. Worth, Austin and San Antonio. With information on owners, occupancy, rent, ammenities, detailed property information, comparable information, and much more, ApartmentLink provides vital apartment information for on-site managers, vendors, brokers, owners and investors. The database is available online at oconnordata.com.

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About O'Connor & Associates
O'Connor & Associates, a Texas-based national real estate service firm providing appraisals, market research, cost segregation studies and federal and ad valorem tax reduction services, has been in business since 1974 and has more than 40,000 clients. Patrick O'Connor, MAI, president of O'Connor & Associates since 1983, is frequently acknowledged by national publications as a respected source of information on real estate trends. Visit www.poconnor.com.

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