Texas Apartment Supply to Drop Notably in 2025

After dominating for new apartment supply volumes in 2024, Texas is now past its peak and delivery volumes are dropping off.

Nearly 120,000 new apartments delivered across the Lone Star State in calendar 2024, according to data from RealPage Market Analytics. In fact, nearly five out of every 100 existing apartment units in the state delivered in 2024. But delivery volumes for 2025 are set to drop by about half, with 70,000 units scheduled to complete in the coming year. By 2026 and 2027, scheduled supply drops off even more, with roughly 45,000 to 50,000 units expected to complete each year. Those volumes anticipated for 2026 and 2027 will be the smallest annual totals Texas has seen since 2013, which was the last time calendar-year deliveries fell below 50,000 units statewide.

A precursor of supply, multifamily starts also declined notably in recent years in Texas. In calendar 2022, over 114,000 units got off the ground in Texas, a peak volume for the state. After that historic peak, starts dropped to 68,000 units in 2023 and declined even further to about 38,800 units in 2024. At least some of those starts delivered in 2024 and the remaining will most likely come online in 2025.

Major Texas apartment markets that have seen the most severe slowdowns in starts include Houston, Austin and Dallas. Only about 6,000 units started in calendar 2024 in Houston, less than half the 14,600 or so units that got off the ground in calendar 2023. In fact, Houston saw fewer units start in 2024 than in any calendar year since 2010.

Austin saw about 7,500 units start in 2024, also roughly half the 15,700 units that broke ground in 2023. Like in Houston, the volume of units that started in Austin in the past year was the lowest in over a decade. But the story in Austin was a bit different in that starts here are down an incredible 17,000 units from the peak volume seen in 2022.

Dallas – the state’s construction start leader in 2024 with 15,600 units getting under way – was also down notably from the 21,900 units that got off the ground in 2023. Dallas is set to remain the state’s construction leader moving forward, but at a much more reserved pace.

For more information on the state of the Texas apartment market, including forecasts, watch the webcast Market Intelligence: Q1 2025 Texas Region.