The multifamily fundamentals in Dallas-Fort Worth remain sluggish — but improvement is expected in the future.
Colliers' first-quarter market report showed a common theme: while positives emerged on a quarterly basis, the trend is opposite from an annual perspective.
That's especially the case with absorption, which saw a negative -817 units in the fourth quarter before surging to a positive 8,494 units in the first quarter. Yet, that number remains down from the 9,986 units posted in the same period a year ago.
Occupancy improved by 10 basis points quarter-over-quarter but dropped 40 basis points year-over-year to 93.2 percent. And average monthly rents increased by $2 to $1,483 per month from the previous three months — but fell $6 from the levels seen in the 12 months prior.
However, one theme was consistent: construction continues to fall, with just 43,194 underway in the first quarter compared with 48,875 in the same period of 2025.
"Consistent with projections from the prior quarter, the first quarter of 2026 reflected early signs of equilibrium in the Dallas–Fort Worth multifamily market," Colliers summed up in its report.
That leads to bullishness that fundamentals will surge in the first quarter of 2027. According to Colliers' forecast, net absorption will surge to 21,668 units in that period, more than double the amount seen this past quarter.
At the same time, occupancy will improve to 93.3 percent, while asking rents will jump to $1,519. That comes as Colliers also projects that construction will fall to 25,660 units, with supply surging to 22,143 units, from the 7,484 units that hit the market this past quarter.
"Altogether, these trends suggest that Dallas and Fort Worth are entering a more balanced phase, supported by stronger demand, rising occupancy, and a slowdown in new construction," Colliers concluded.
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