Market News

Top Texas Markets for Multifamily Development

Time : May 03,2021 Source:

Texas officials deemed construction as essential during the pandemic, prompting developers to build big—albeit at a slower, more cautious pace. And while the health crisis caused a temporary slowdown in deliveries, the Texas multifamily market showed resiliency as no other markets have.

According to Yardi Matrix data, some 6,300 units came online year-to-date through March. Deliveries were concentrated in larger markets such as Dallas-Fort Worth and Houston, which accounted for 67 percent of total completions. The list below highlights the top five Texas markets for multifamily deliveries year-to-date through March, using Yardi Matrix data.


Development activity in the market kicked off the year slowly, with 252 units delivered this year through March. Even so, Central East Texas has more than 1,600 units scheduled for completion in 2021, surpassing last year’s total of 230 units delivered.

Oklahoma-based Case & Associates is behind the 252-unit community that delivered early in January—Bend at New Road broke ground in October 2019. The 12-building property is situated in Waco and encompasses lofts, townhomes, as well as one- and two-bedroom apartments ranging in size from 789 to 1,267 square feet. Located close to Interstate 35, the community provides easy access to key locations such as Austin, San Antonio and the beaches of Corpus Christi.


San Antonio’s rental market showed resilience throughout 2020 thanks to the metro’s strong multifamily fundamentals. Developers added 6,605 apartments to stock in 2020, nearly on par with this year’s estimated deliveries (6,872 units).

Two properties totaling 627 units came online in the first three months of the year—Cypress Real Estate Advisors’ Heritage Plaza was the largest. The 341-unit community is located at 227 Dwyer Ave. in the city’s Southtown/King William submarket and represents the Austin-based developer’s second project in the area. The $57 million market-rate development includes apartments ranging from 365 to 1,120 square feet, as well as 4,650 square feet of retail space. Additionally, it is one of the few incentive-backed housing developments located in San Antonio’s downtown core. 


Despite the pandemic-induced economic contraction, the market powered through due to its diverse economy and the robust presence of tech companies. Planned deliveries for 2021 amount to 26,847 units, double the figure from a year before when 12,708 units came online.

Six projects totaling 1,329 units were delivered in the metro year-to-date, including a 308-unit community developed by a joint venture between Cambridge Development Group and NRP Group. Citadel at Tech Ridge was initially scheduled for completion in December 2020 but welcomed its first residents only in early 2021. The 12-building community includes one- to three-bedroom units averaging 869 square feet. Located on 12 acres at 1127 Pearl Retreat Lane in North Austin’s Tech Ridge, the property is in the vicinity of major employers such as Samsung, General Motors, Amazon and Apple, and is serviced by the nearby Capital Metro Tech Ridge transit center.


It takes more than a global pandemic and a historical drop in oil prices to disrupt Houston’s strong multifamily market. The metro weathered the health crisis better than initially expected, and developers added 13,588 units to inventory in 2020. Six properties totaling 1,840 units came online year-to-date, with another 20,000 scheduled for completion by year-end.

Last February, Trammell Crow Residential completed Alexan Lower Heights, a 375-unit community in Houston’s West End neighborhood. Designed by EDI International, the five-story project includes units ranging between 665 and 1,392 square feet. Greystar was selected to handle property management services.


Developers added 2,172 units across 12 communities to the metro’s inventory in the first three months of 2021, making Dallas-Fort Worth the most active market in Texas from a development perspective. An additional 38,500 units are scheduled for completion by year-end. With 23,975 units completed in 2020, the metro was one of the nation’s best-performing multifamily markets.

The largest delivery year-to-date in the market—and in the state—is One90 Firewheel, a 483-unit premier community in Garland. Constructed by local developer Integrated Real Estate Group, the seven-building project is on a 16-acre site at 1675 W. Campbell Road and includes one- to three-bedroom units ranging between 624 and 1,381 square feet.