Are you searching for information on multifamily investing in Texas? If so, you’ve come to the right place!
Multifamily investing in Texas is hot right now, especially as more people continue to relocate to Texas from states like California.
In today’s article, I will provide you with more information on which are the top markets for multifamily investing in the state of Texas.
Top Markets For Multifamily Investing In Texas
The first markets that you should consider for investing in multifamily properties in Texas is the Dallas-Fort-Worth area.
During the first three months of 2021, developers in the DFW area have added more than 2,000 units across 12 communities in the area and they are not done since the goal is to add close to another 40,000 units to the Dallas-Fort-Worth area this year.
As of today, the developer that’s making the biggest impact in the area is Integrated Real Estate Group since the company is working on a big 16-acre project off W. Campbell Road in Garland, with 1–3-bedroom units.
Development activity in the market kicked off the year slowly, with 252 units delivered this year through March. Even so, Central East 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 delivered early in January—Bend at New Road broke ground in October 2019. The 12-building property is situated in Waco and encompasses lofts, townhomes, as well as one- and two-bedroom apartments ranging in size from 789 to 1,267 square feet. Located close to Interstate 35, the community provides easy access to key locations such as Austin, San Antonio and the beaches of Corpus Christi.
San Antonio’s rental market showed resilience throughout 2020 thanks to the metro’s strong multifamily fundamentals. Developers added 6,605 apartments to stock in 2020, nearly on par with this year’s estimated deliveries (6,872 units).
Two properties totaling 627 units came online in the first three months of the year—Cypress Real Estate Advisors’ Heritage Plaza 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-backed housing developments located in San Antonio’s downtown core.
It takes more than a global pandemic and a historical drop in oil prices to disrupt Houston’s strong multifamily market. The metro weathered the health crisis better than initially expected, and developers added 13,588 units to inventory in 2020. Six properties totaling 1,840 units came online year-to-date, with another 20,000 scheduled for completion by year-end.
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 between 665 and 1,392 square feet. Greystar was selected to handle property management services.
Why Is Texas A Top State For Multifamily Investing?
Texas hasn’t become a top relocation destination overnight, the Lone Star State has been enjoying explosive growth for years thanks to low taxes, jobs and a higher standard of living than most states.
It’s true that Texas does see some of the hottest temperatures each summer but, the reality is that people who relocate to TX are willing to forego the hot temperatures in favor of opportunity and this is also good for multifamily real estate investors as well.
This is the seventh year in a row that Texas has experienced an inflow of more than 500,000 residents, with the majority of them coming from California and Florida. (Travel + Leisure just named Dallas-Fort Worth a top place to retire in 2021, along with four cities in Florida. No place in California made the list.)
California also saw the most residents move out in 2019, meaning about double the number of Californians moved to Texas compared to the migration of Texans to California.
Other top states for people moving to Texas include Louisiana, Illinois, Oklahoma, New Mexico, Georgia, and Arizona.
From 2014 to 2018, the top counties for people moving to Texas from out of state included Harris, Dallas, Tarrant, Bexar, and Travis. Dallas-Fort Worth-Arlington and Houston-The Woodlands-Sugar Land recorded the highest number of incoming residents from out-of-state during the same time frame.
A separate report from real estate brokerage Redfin, released February 4, said Dallas had the second largest net inflow of people in the U.S. in 2020 — ahead of headline-grabbing Austin. And data from job website LinkedIn indicates both DFW and Austin have been magnets for U.S. professionals relocating during the pandemic.
Invest In Multifamily Properties
Are you ready to invest in multifamily properties in 2021 or beyond?
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