The latest delivery data shows that Texas continues to sit at the center of multifamily development activity. Dallas led the country in 2025 with 40,666 units delivered, Austin followed with 30,943, and Houston still landed in the top 10 with 16,339 units completed. Even with that volume, the bigger story is that new construction starts dropped across these major markets, which points to a shift in how supply may build over the next few years.
Texas Still Leads the Pace of New Supply
Dallas remained the top market in the country for multifamily deliveries, finishing 2025 just ahead of its 2024 total. Austin also posted an increase over the prior year, while Houston saw a much sharper decline in completed units. At the start of 2026, Dallas also had the largest number of units under construction among the top markets, which shows that the region still has a strong pipeline even as new starts begin to slow.
Volume Alone Does Not Tell the Whole Story
For owners and operators, a high number of deliveries can create pressure in the short term. More units in the market can mean stronger competition for leases, more pressure on concessions, and a greater need to stand out at the property level. At the same time, construction starts fell across these major metros, including a steep drop in Dallas. That matters because it suggests this wave of supply may not continue at the same pace for long. Many markets are still working through a large pipeline, but fewer new projects are entering it.
Dallas and Austin Show Why Property Positioning Matters
Dallas and Austin continue to attract development because they remain growth markets with deep renter demand. Dallas had 48,859 units under construction at the start of the year, while Austin had 25,931. That means competition will remain active, especially in areas where new product is opening near existing communities. For older assets, this creates a clear challenge. Properties that have not kept up with interior finishes, exterior appearance, common area appeal, or needed repairs may have a harder time competing when residents have new options nearby.
Houston Tells a Different Story
Houston still ranked among the top 10 markets for deliveries, but the metro posted one of the largest year over year declines on the list. Even so, more than 27,000 units were still under construction at the start of 2026. That mix of slower deliveries and a sizable pipeline shows why owners need to pay attention to where their assets sit in the market. In some submarkets, the pressure may already be easing. In others, incoming supply may still shape leasing performance and resident expectations.
Existing Properties Need a Stronger Competitive Edge
When new communities enter the market, they raise the standard for finishes, curb appeal, and shared spaces. That does not mean every property needs a full repositioning effort, but it does mean deferred work becomes more visible. Interior upgrades, exterior repairs, amenity improvements, and restoration work can all play a role in helping a community stay competitive as nearby supply grows. In a market where renters have choices, condition and presentation matter.
Slowing Starts Create a Window for Action
One of the most important takeaways from the report is that starts were down across the top delivery markets. Dallas dropped from 123 starts in 2024 to 76 in 2025, while Austin fell from 61 to 33 and Houston also saw a decline. That points to a potential window for existing owners. While the market is still absorbing units already underway, the next wave may not be as large. Owners who improve their properties now may be better positioned by the time supply pressure begins to settle.
What This Means for Multifamily Owners
For multifamily owners across Texas, the takeaway is not just that deliveries remain high. It is that the market is shifting. Dallas, Austin, and Houston are still active, but the pace of new starts suggests a different supply story could take shape over the next few years. That makes this an important time to evaluate property condition, prioritize the right renovation scopes, and make improvements that help communities compete both now and as the pipeline changes.
At Matrix, we work with multifamily owners and operators to support property improvements that help communities stay ready for the market in front of them. From interiors and exteriors to restoration and targeted upgrades, we help teams move projects forward with clear scopes and reliable execution.