More than 11% of DFW rental apartment units were vacant at 12/31/2009, the highest level in twenty years. And rental rates in 2009 were down 2.6% from 2008.

The outlook does not look bright for occupancy or rental rates because more than 11,200 apartment units were under construction at year end in North Texas, of which 7,000 should come online by June 30. More than 18,000 units were added in 2009 while net absorption (move ins net of move outs) were down almost 900 units from the prior year. In the fourth quarter 1,500 units were rented but almost 8,000 came online.

For owners of apartment units the declines as of 12/31/09 can be turned to some advantage because appraisal districts base their values primarily on income for the prior year. In Dallas, for example, owners can verify the appraisal method by visiting the District’s website (www.dcad.org), finding their property and viewing Appraisal Method on the first page.