Dallas Multifamily Fundamentals Stabilizing

Marcus & Millichap has come out with its Dallas-Fort Worth Multifamily Market Report for Q2 of 2025.  

“Multifamily fundamentals in Dallas-Fort Worth are stabilizing, with tightening vacancies and renewed rent growth signaling improving market conditions,” stated Mark McCoy, vice president and regional manager. 

 More insights include:  

• Deliveries are set to normalize to 25,000 units in 2025, down significantly from the record 43,000 in 2024, rebalancing supply-demand dynamics across many submarkets. 
• Strong renter demand pushed the metro’s vacancy rate down to 6.6 percent in March, with 42 of 48 submarkets recording year-over-year declines, especially in slower-growth areas like Allen-McKinney and Frisco-Prosper. 
• Rent performance showed signs of stabilization, with Class A properties in central locations such as Grand Prairie and South Irving achieving over 3 percent annual growth, even as the metro’s average effective rent reached $1,485 per month. 
• The construction slowdown was more pronounced in Dallas than Fort Worth, with pipeline reductions in areas like Irving and Plano supporting continued tightening in inventory growth.