Occupancy is Tight in D/FW’s Class C Apartments

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Occupancy in Dallas-Fort Worth’s lesser-quality Class C apartments has climbed to 95.2%. That performance tops the rates of 94.3% seen in the Class B stock and 93.6% recorded for Class A properties. Essentially full occupancy in the lower-tier product segment in North Texas is unusual, with today’s rate topping the long-term norm by a whopping 350 basis points. Available product is hard to find in traditionally less-desirable neighborhoods that have had chronic vacancy issues historically. These spots include the Bachman Lake area in Northwest Dallas, the Five Points area in Northeast Dallas, the Fair Park area in South Dallas, and portions of East Fort Worth. Tight occupancy in Class C product is helping support solid annual rent growth of 3.4% in that product niche.