Major multifamily markets in Texas, beleaguered by an onslaught of supply as developers chased new renters moving to the state during the COVID pandemic, are beginning to see signs of recovery. But it’s one that looks dramatically different not only between cities, but also from one submarket to the next. Rents are roughly flat in Dallas and remain below year-ago levels in Austin, Houston and San Antonio after two to three years of decline, says Patrick Strake, managing director with Franklin Street. And depending on the submarket, apartment renters are jockeying for, and receiving, significant concession packages relative to the rest of the United States, he adds. According to the Federal Reserve Bank of Dallas, those include six to eight weeks of free rent (and as much as 10 to 12 weeks in some submarkets). “Texas is still going to be a great spot for capital for years to come, given its job growth and business-friendly nature,” adds Strake, who is based in Austin and leads Team Texas, the firm’s statewide multifamily investment sales platform. “But right now, equity is being highly selective, because the four big metros are coming out of a supply wave on four different timelines.” Hardest …
