Dallas’ Metro Area Is Building More Apartments Than Houston’s and San Antonio’s Combined: Report

D-FW is once again showing itself to be a powerhouse when it comes to new multifamily construction, with a recent report placing it No. 2 for expected unit delivery in 2025.

Some 28,958 units are anticipated this year in the Metroplex, putting the region only below the New York City metro area when it comes to apartments on deck. Comprising around 35% of Texas’ total multifamily construction, D-FW is expected to add more units than the Houston and San Antonio metro areas combined. It is also slated to produce more than entire states like Arizona and Georgia, according to RentCafe.

Population growth in North Texas has obviously driven the multifamily sector into a building boom, but affordability still manages to remain an issue in the area. New apartments have even been getting smaller as rents climbed over the last several years amid the state’s housing shortage.

Officials at the local and state level have been working to encourage more apartment construction to help meet the growing demand and curb rent hikes. Senate Bill 840, for instance, which goes into effect on September 1, allows developers to build multifamily or mixed-use on land that’s already zoned for commercial or light industrial use. And in Dallas, a new comprehensive land use plan coupled with a push to reform the zoning code seeks to go down the path of increased density as one solution to the housing shortage.

SB 840 Poised To Unleash Multifamily Development in TX’s Biggest Cities

While Dallas has lagged behind its sister cities in terms of population growth — after all, it’s built out to an extent that locales in Collin County and Tarrant County won’t reach for generations — it’s worked its way to the front of the pack this year, at least on the multifamily front. Dallas proper clocked the most units in the metro area expected by the end of 2025 with 5,780. Fort Worth came in with almost 3,800, followed by McKinney at roughly 2,000, and Denton at around 1,700.

D-FW isn’t the only Texas metro up at the top of the list. The Austin area came in right behind it at No.3, clocking 26,715 to rank third for expected unit delivery this year. Interestingly enough, our capital city will be responsible for nearly 15,200 of those new apartments, far more than the Big D. In fact, when ranking by municipality rather than metro, Austin earned the No.1 spot.

Overall, southern states were well represented in RentCafe’s ranking, with metros in Texas, Florida, and Georgia putting up some big numbers.

“Southern metros typically offer streamlined approval processes and fewer regulatory hurdles, making it easier to bring multifamily projects to market,” said Yardi Matrix senior analyst and manager of business intelligence Doug Ressler, according to RentCafe. “At the same time, elevated home prices and a shortage of attainable for-sale housing are pushing more residents toward rentals.”

RentCafe’s ranking was based on data sourced by Yardi Matrix. Some 369 metro areas in the United States were included in the analysis, but only projects containing 50 or more units were considered.