Are builders getting ahead of the market for Dallas high-rise living? | Real Estate

Apartment rents are rising at less than half the rate of a year ago. Last summer, average rents for North Texas units were almost 6 percent higher than in 2015.

As of July, Dallas-area rents were up a measly 2.4 percent, according to the latest numbers from apartment researchers at Axiometrics. Rent increases in markets with the most construction — Uptown and Dallas' Oak Lawn neighborhoods — are even smaller in some cases.

While that's good for renters who've seen a spike in monthly costs, it's troublesome for builders who are still seeing expenses soar for everything from land to lumber.

And it's not just the new buildings that could see problems.

Even before the current crop comes to market, high-rise rental units are facing competition from the latest flavor of luxe living that offers everything from private poker rooms to double dog parks to woo away their tenants.

Mike Puls, who's a consultant for new multifamily residential developments and has been tracking the Uptown market for over a decade, says he's already seeing rent declines at some high-rise apartment buildings.