There's good news and bad news for multifamily in Dallas-Fort Worth. The positive development is that construction continues to slow down, positioning the market for a strong recovery in late 2026. Yet, that doesn't take away from the pain in the fourth quarter, as highlighted in Colliers' latest DFW multifamily report.
For one, demand shifted to negative territory at -301 units in the fourth quarter. That's compared with the positive 14,161 units seen at the end of 2024. The negative demand was most pronounced in the Intown Dallas and Oak Lawn/Park Cities submarkets, with -211 and -231 units, respectively.
Occupancy dropped by 20 basis points year-over-year to 93.1 percent. This marked a decline "across all asset classes for the second straight quarter," according to Colliers.
Additionally, rents trended the wrong way, with the average asking price at $1,482, a $12 drop from the end of 2024. This was a result of the weaker demand and landlords going out of their way to retain tenants, said Colliers.
On the bright side, construction continues to slow down in the market. The 42,702 units underway marked the 13th straight quarter of contraction. Also, new supply dipped to 8,115 units from 10,565 units. Meanwhile, in the fourth quarter of 2026, Colliers forecasts that DFW multifamily deliveries will nearly triple to 22,963 units, while construction will fall to 22,973 units.
Some other projections by Colliers in the fourth quarter of 2026 include rents increasing to $1,517 on average, occupancy improving to 93.5 percent and demand skyrocketing to 25,689 units.
So the hope for DSW is a strong recovery, with Colliers noting that "stability remains the focus" for the market looking ahead.
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