By Scott Ferguson, Westmount Capital
The Dallas-Fort Worth (DFW) multifamily real estate market remains one of the most dynamic and resilient in the nation. Driven by strong job creation, population growth and a business-friendly environment, DFW continues to attract investors and developers alike.
As demand for rental housing evolves, it is essential to assess current trends and anticipate future opportunities. At Westmount Realty Capital, we have been actively engaged in the DFW multifamily sector, leveraging our four decades of experience to identify high-potential assets and execute strategic value-add initiatives. Our commitment to adaptability and long-term growth positions us well in today’s evolving landscape. Here’s what we’ve learned about the DFW market through the years.
Population Growth Affects Most Sub-Markets
DFW’s economic expansion remains a primary driver of multifamily demand. The metroplex led the nation in population growth between 2022 and 2023, adding approximately 152,000 residents, according to CBRE. This surge is fueled by corporate relocations, business expansions and a diverse employment base, with major players including Toyota, JPMorgan Chase and Goldman Sachs. These expanding employers are strengthening the region’s job market. With a high influx of new residents, rental demand continues to rise, particularly in suburban markets.
The Market is Still Playing Catch-Up After COVID
While renter demand has been strong, it has not been sufficient to keep up with the area’s robust development pipeline. The exceptionally strong rent growth from 2021 to 2022 prompted developers to plan and break ground on many new sites. This new supply, which totaled 38,000 units between March 2024 and March 2025, was the highest on record for DFW, according to CoStar Group. The elevated supply has pushed the market vacancy rate up 0.9 percent to 11.4 percent today. As new supply begins to wane, the market is poised to stabilize during the second half of 2025.
According to CoStar, renter demand in Dallas-Fort Worth surged in the first few months of 2025, with net absorption reaching 29,000 units as of March. This growth, fueled by easing inflation and improving consumer confidence, highlights a strengthening market and signals ongoing stabilization.
Value-Add Opportunities Abound
Westmount has deployed a range of investment strategies, including value-add acquisitions and repositioning efforts. Westmount takes an active role in overseeing renovations, property management and operational efficiencies to drive long-term value. Several properties across the metroplex show how we’re adapting to market shifts through targeted improvements and strategic location selection. Here are three examples.
Premier at Prestonwood is a strategically located property in North Dallas. With its unique townhome design, the property features direct-access garages attached to each unit, setting it apart from most competitor properties. Westmount has completed selective upgrades to the unit interiors, further enhancing the desirability of the property.
Located near downtown Dallas, Skyline at Kessler has undergone a comprehensive renovation plan that includes extensive unit interior upgrades, tenant amenity enhancements and improved management and operational processes. At the time of acquisition, rents were well below the area’s average, providing an opportunity for excellent post-renovation premiums.
Forest Oaks represents a successful repositioning effort, with strategic renovations and rental adjustments driving significant value appreciation. Having completed our repositioning of the property, Forest Oaks is now under contract to be sold, delivering solid returns to our investors.
The Future of Multifamily in DFW
Looking ahead, DFW’s multifamily market is expected to remain robust, driven by ongoing job growth and a steady population influx. The DFW metroplex is also projected to surpass the size of Chicago’s metro area sometime in the 2030s, making it the third-largest metro in the nation. This growth will sustain rental demand, particularly in suburban submarkets where affordability and quality of life are key factors.
While excess supply has hindered rent and occupancy growth in the short term, the market is projected to stabilize over the next year as new multifamily deliveries are projected to decline dramatically. As the multifamily sector begins its recovery, current conditions present an attractive window for investors to acquire assets at favorable prices, ahead of increasing demand and competition in the coming months.
— Scott Ferguson is senior director of multifamily acquisitions at Westmount Realty Capital LLC. He specializes in multifamily acquisitions and asset management, leveraging expertise in market trends and economic cycles to execute strategic investments across high-growth markets, including Dallas- Fort Worth along with other major Texas metros.