Texas officials have deemed construction essential during the pandemic, urging developers to build big, albeit at a slower and more cautious pace. And while the health crisis has caused a temporary slowdown in deliveries, the Texas multifamily market has shown resilience like no other market has.
According to Yardi Matrix data, some 6,300 units have gone live since the start of the year through March. Deliveries were concentrated in larger markets such as Dallas-Fort Worth and Houston, which accounted for 67% of total completions. The list below highlights the top five Texas markets for multifamily deliveries year-to-date through March, using Yardi Matrix data.
|Rank||Market name||Completions since the beginning of the year|
|5||East Central Texas||252|
Source: Matrix Yardi
5. East Central Texas
Development activity in the market got the year off to a slow start, with 252 units delivered this year through March. Even so, East Central Texas has more than 1,600 units scheduled for completion in 2021, surpassing last year’s total of 230 units delivered.
Oklahoma-based Case & Associates is behind the 252-unit community that was delivered in early January. Bend at New Road opened in October 2019. The 12-building property is located in Waco and includes lofts, townhouses, as well as one- and two-bedroom apartments ranging in size from 789 to 1,267 square feet. Located near Interstate 35, the community offers easy access to key locations such as Austin, San Antonio and the beaches of Corpus Christi.
4. San Antonio
San Antonio’s rental market has shown resilience throughout 2020 thanks to strong multi-family fundamentals in the metro. Developers added 6,605 apartments to inventory in 2020, almost on par with this year’s estimated deliveries (6,872 units).
Two properties totaling 627 units went live in the first three months of the year – Heritage Plaza by Cypress Real Estate Advisors was the largest. The 341-unit community is located at 227 Dwyer Ave. in the city’s Southtown/King William submarket and represents the Austin-based developer’s second project in the area. The $57 million market rate development includes apartments ranging from 365 to 1,120 square feet, as well as 4,650 square feet of retail space. Additionally, it is one of the few incentive developments located in downtown San Antonio.
Despite the pandemic-induced economic contraction, the market has held up thanks to its diversified economy and strong presence of tech companies. Expected deliveries for 2021 stand at 26,847 units, double the previous year’s figure when 12,708 units went live.
Six projects totaling 1,329 units have been delivered on the Metro since the start of the year, including a 308-unit community developed by a joint venture between Cambridge Development Group and NRP Group. Tech Ridge Citadel was originally slated for completion in December 2020, but did not welcome its first residents until early 2021. The 12-building community features one- to three-bedroom units averaging 869 square feet. squares. Located on 12 acres at 1127 Pearl Retreat Lane in North Austin’s Tech Ridge, the property is near major employers such as Samsung, General Motors, Amazon and Apple, and is serviced by the nearby Capital Metro Tech Ridge Transit Center.
It takes more than a global pandemic and a historic drop in oil prices to disrupt Houston’s strong multifamily market. Metro has weathered the health crisis better than originally anticipated, and developers have added 13,588 units to inventory in 2020. Six properties totaling 1,840 units have come online since the start of the year, and 20,000 others should be completed by the end of the year.
Last February, Trammell Crow Residential completed Alexan Lower Heights, a 375-unit community in Houston’s West End neighborhood. Designed by EDI International, the five-story project includes units ranging from 665 to 1,392 square feet. Greystar has been selected to manage property management services.
1. Dallas-Fort Worth
Developers added 2,172 units in 12 communities to Metro inventory in the first three months of 2021, making Dallas-Fort Worth the most active market in Texas from a development perspective. An additional 38,500 units are expected to be completed by the end of the year. With 23,975 units completed in 2020, Metro was one of the best performing multi-family markets in the country.
The biggest year-to-date delivery on the market — and in the state — is One90 Firewheel, a 483-unit premier community in Garland. Built by local developer Integrated Real Estate Group, the seven-building project sits on a 16-acre site at 1675 W. Campbell Road and features one- to three-bedroom units ranging from 624 to 1,381 square feet.
Yardi Matrix covers all multifamily properties over 50 units in 133 markets in the United States. This ranking reflects transactions for properties within this sample group.