NVest AnalyticsNVest Analytics
Monthly multifamily market intelligence

The Pierson Report

Monthly multifamily market intelligence for Dallas-Fort Worth, with Texas, national, and global context. Published by NVest Analytics. Every figure is sourced and dated.
August 2026
Dallas-Fort Worth MSA. Multifamily
Get this monthly report by email.
Receive the current Dallas-Fort Worth edition now and one report each month. Unsubscribe or change markets any time.

Request a monthly report for another market

Tell us the metro area. If there is enough interest we will add it as a standing monthly edition.

More markets are added as readers request them.

The Week in Three Parts

How We Got Here

  • DFW absorbed a record 2024 to 2025 delivery wave; vacancy across all inventory reached 12.2% as lease-ups piled up [20].
  • Nationally, construction fell to 3.5% of inventory, the lowest since 2013, as rates rose and rents stalled [28].
  • Agency loan rates bottomed near 5.56% in early June [3] before the 10-year Treasury climbed from about 4.2% to 4.68% [1][14].
  • The Fed committee held rates at 3.50 to 3.75% on Jul 29, but three members voted to raise them, the first three-way split in one direction since 2016 [17][18].
  • Texas job growth returned to its 2% trend in the first half of 2026 after a flat 2025 (0.1%), with wage pressure broadening [8][48].

Where We Are Now

  • Demand now exceeds supply: U.S. absorption of 362K units over the past four quarters vs. 358K delivered, the first crossover since 2022 [27]. In DFW, demand is outpacing new supply [12].
  • Rents still negative: DFW rent growth of minus 1.6% to minus 2.1% year over year, with concessions [22][23]. U.S. minus 1.1%, but rising six straight months [25].
  • Inflation is still above target: CPI 3.4% in July, PCE 3.7% in June against the Fed's 2% goal [36][37]. Short-term rates are steady, with SOFR at 3.65% [35].
  • Pricing gap: DFW average cap rate 5.5% [19] vs. agency 5-year debt at 6.20% [4]. That is negative leverage of about 70 basis points.
  • Population is the offset: DFW is number one in the U.S., adding 100K residents and 47K households in a year [12].
  • Global bond yields are rising in parallel, so nothing abroad is pulling U.S. rates lower [14][15].

Where We're Headed

  • Rates: futures markets price two quarter-point increases (Sep 16 and Dec) [18]. If they happen, agency fixed rates extrapolate to roughly 6.5 to 6.7% by year-end at current spreads [1][4].
  • Supply: 2026 U.S. deliveries projected at 382K units, down 27% from last year [28]. The pipeline thins further into 2027.
  • DFW vacancy is forecast to fall 40 basis points to 6.6% this year with effective rents up 1.8% [12]. National vacancy is expected to peak in 2026 then tighten, with rent recovery lagging [29].
  • Texas employment forecast is 2.0% (range 1.5 to 2.5%) [9]. Texas FAIR Plan insurance rate changes take effect Sep 1 [10].
  • Net: fundamentals improve while financing worsens. Expect cap rates to hold or drift up 25 to 50 basis points if the rate increases land, keeping deal volume selective through Q4 [12][18][19].

What It Means for Dallas

  1. The rate direction has flipped. Three Fed votes to raise rates and a 10-year Treasury at 4.68% mean the "wait for cuts" plan is over for 2026. Owners with loans maturing in 2026 or 2027 should model a refinance at 6.25 to 6.75%, not 5.5% [1][17][18].
  2. Negative leverage is the DFW reality. Average cap rate 5.5% vs. agency debt at 6.20%. Deals only work with conviction on rent growth, low leverage, or a low purchase basis, which is exactly why volume is selective [4][19].
  3. Fundamentals are bottoming, not recovered. Absorption now exceeds deliveries nationally and in DFW, and the pipeline is the thinnest since 2013. But DFW rents are still down 1.6 to 2.1% with concessions. Expect vacancy to peak this year and rent growth to turn positive in late 2026 or 2027 [12][22][27][28].
  4. Texas is the demand engine. Number one U.S. metro for population growth, job growth back to the 2% trend, wages rising. The risk is on the cost side: 2026 apartment appraisals up 19.6% in Dallas County and 23.8% in Tarrant County [49], insurance renewals, wage pressure on payroll, and any Fed-driven jump in floating-rate debt [8][9][10][12].
  5. Global factors point the same way. German, British and Japanese government bond yields are all rising, the European Central Bank is on hold, and oil is elevated. Energy strength is a modest Texas offset [14][15][16].

DFW Multifamily

DFW is rebalancing. Demand now outpaces new supply after the 2024 to 2025 delivery wave, and North Texas leads the nation in absolute population growth. But rents remain negative year over year and concessions are widespread. Sources disagree on vacancy; the range is shown rather than a single figure.

Average cap rate
5.5%
range 4.8% to 6.8% by submarket
NextGen / Colliers / Matthews [19][20][21]
Rent growth, year over year
-1.6 to -2.1%
vs. national -1.1%
CRE Daily / Yardi [22][23]
Occupancy (stabilized)
92.3 to 93.2%
Down 70 basis points year over year (Apr) [23]
Yardi / Northmarq [23][24]
Population growth
+100K
#1 U.S. metro. +47K households
D Magazine, Aug [12]

DFW Cap Rate Range by Asset Class

Where deals are clearing. Hover each range.
4%5%6%7% Class A 4.8 to 5.3% Class B 5.3 to 6.0% Class C 6.0 to 6.8% avg 5.5% debt 6.20%
Cap rate rangeMarket averageAgency loan rate
Sources: NextGen Properties [19]; Colliers Q1 [20]; Matthews Q1 [21]. Class splits interpolated from the published 4.8 to 6.8% range.

DFW vs. National Fundamentals

Hover a bar. Negative means rents are falling.
Rent growth, year over year 0%-2%-4%+2% DFW -1.6 to -2.1% U.S. -1.1% Vacancy 0%5%10%15% DFW 7 to 12.2% U.S. 7.2 to 8.9%
DFWUnited States
Sources: CRE Daily [22]; Yardi Matrix [23]; Colliers [20]; Apartment List [25]; CBRE [26]; Cushman and Wakefield [27].

Supply Pipeline, U.S. and DFW

The delivery wave is ending.
MetricNationalDFWRead-through
Deliveries382,000 projected for 2026 [28]7.3K in Q1 2026; 42K in all of 2024 [21][43]U.S. deliveries down 27% from last year; DFW expected near 21K per year by 2028 to 2029 [43]
Under construction3.5% of inventory [28]30.2K units, from 42.7K entering 2026 [21][43]U.S. lowest since 2013; DFW down 43% from the 2023 peak
Absorption vs. deliveries362K vs 358K, four quarters [27]5.1K to 8.5K absorbed vs. 7.3K to 7.5K delivered, Q1 [21][43]U.S. first positive since early 2022; DFW sources differ on Q1 absorption
2026 vacancy forecastPeak then tighten [29]6.6% (down 40 bp) [12]DFW effective rent +1.8% forecast [12]
Supply pressure by DFW submarketFrisco/Prosper and Allen/McKinney most pressured [21]; Fort Worth 3,793 units under construction [44]North Fort Worth and northern Collin County: 6 to 8 weeks free rent is standard; 60% of DFW communities offer concessions, most since 2020 [43]
Submarket rent trend, trailing 12 monthsUptown Dallas +4%; intown Fort Worth +3%; Denton -6 to -7% [43]Urban core leading; outer suburbs still digesting supply

DFW Submarket Snapshot

The largest cities in the Dallas-Fort Worth-Arlington, TX metro. Rent and rent growth from Apartment List (Jul 2026); multifamily units permitted (buildings of 5+ units) from the Census Building Permits Survey. Permits lead construction by 12 to 24 months. Rows alphabetical; hover a row for detail.
SubmarketMedian rent
Apartment List, Jul 2026 [207]
Rent, year over year
Apartment List [207]
MF units permitted, 2025
Census BPS [208]
MF units permitted, 2026 through Jun
Census BPS [208]
2026 permit pace vs. 2025
annualized
Arlington$1,253-3.1%812684+68%
Carrollton$1,492-0.3%1,1500-100%
Dallas$1,329-1.5%4,8832,033-17%
Denton$1,175-9.5%2,508757-40%
Fort Worth$1,340-1.6%3,3483,357+101%
Frisco$1,730-4.2%4,562660-71%
Garland$1,273-5.0%48358+14x
Grand Prairie$1,383-1.7%240545+354%
Irving$1,412-1.1%300-100%
McKinney$1,514-4.5%1,391677-3%
Mesquite$1,247-2.0%00n/a, no 2025 permits
Plano$1,643-2.4%175350+300%

DFW Transactions and Deal Flow

Large-deal velocity slowed in August; sources attribute it to timing, not demand. Institutional buyers are selective after the oversupply of 2024 and 2025. Q1 2026 DFW sales volume was $43.3 million at about $183K per unit [21]. Activity reported in the last 30 days was construction financing rather than sales.

PropertySubmarketUnitsBuyer / SellerPrice / CapReported
Aura BrookviewFlower Mound300Trinsic Residential Group; $50.1M construction loan from Associated BankFinancingAug 21, 2026 [50]
The LucilleUptown DallasLuxury tower; construction financing secured, completion 2028FinancingJul 15, 2026 [51]
Ardan West VillageUptown Dallas389Knightvest CapitalUndisclosedMay 2026 [32]
Capitol at StonebriarFrisco424Undisclosed buyer, sold by The Bascom Group (Newmark)Undisclosed, 91% occupied, 2017 buildFeb 2026 [30]
The AlbeeFrisco355Bell Partners (Value-Add Fund VIII)UndisclosedDec 2025 [31]
Metro Dallas portfolio450Mesirow FinancialDetails n/a2026 [33]
Luxury development (joint venture)RichardsonTrammell Crow JV, new projectDevelopmentApr 2026 [34]

Multifamily Capital Markets

Agency lending (Fannie Mae and Freddie Mac) remains the workhorse: a combined $176 billion cap for 2026, half of which must go to affordable housing. Low-leverage agency loans price in the mid-to-high 5s as of Aug 24; higher-leverage quotes are in the low 6s. Bank bridge money runs SOFR plus 225 to 325 basis points, debt funds SOFR plus 300 to 450.

Agency Multifamily Rates, 2026 Trend

Freddie Mac indicative 5-year fixed. Hover the points.
6.4% 6.0% 5.6% 5.2% Jun 4 Jul 27 Aug 21 5.56% 5.70% 6.20%
Sources: Select Commercial [3]; Apartment Loan Store [4]. Different quote sources; treat as indicative.

Lending Landscape

Programs, caps, and terms relevant to DFW owners.
ItemCurrentSource
Agency 2026 purchase cap$88B each, $176B totalFHFA [5]
Mission-driven minimum50%FHFA [5]
Freddie Mac 5-year fixed, higher leverage (indicative)6.20%Aug 21 [4]
Fannie Mae 5 / 7 / 10-year, 65% LTV, 1.35x5.45-5.85% / 5.53-5.93% / 5.59-5.99%BWE, Aug 24 [40]
Freddie Mac 5 / 7 / 10-year, 60% LTV, 1.30x5.77-5.92% / 5.83-5.98% / 5.81-5.96%BWE, Aug 24 [40]
Max LTV / min DSCRUp to 80% LTV on small-balance loans; best pricing at 60 to 65% LTV and 1.30 to 1.35xSelect Commercial [3]; BWE [40]
Bridge floating, bank / balance sheetSOFR + 225 to 325 bp (about 5.9 to 6.9%)Crittenden [41]
Bridge floating, debt fundSOFR + 300 to 450 bp (about 6.6 to 8.1%)RRA Capital [42]
Multifamily rate range (all products)5.24% to 12.75%Janover [6]
30-year home mortgage (context)6.65%Freddie Mac PMMS, Aug 20 [7]

Texas

The Texas economy strengthened in the second quarter. Employment grew at a 1.9% annualized pace in the first half after a flat 2025 (0.1%), hiring accelerated in June and July, and the Dallas Fed raised its full-year forecast to 2.0%. Wage pressure is broadening: manufacturers report 4.8% wage growth, the fastest since 2023.

Texas job growth, H1 2026
1.9%
annualized, in line with long-run 2%
Dallas Fed [8][9]
2026 employment forecast
2.0%
Raised Jul 17. Range 1.5 to 2.5%
Dallas Fed [9]
Manufacturing wage growth
4.8%
Fastest since Dec 2023
Dallas Fed [8]
Labor supply
Tightening
Immigration policy cited by employers
Dallas Fed [8]

Texas Job Growth vs. Long-Run Average

Annualized. Hover bars.
0%1%2% Long-run avg 2.0% 2025 0.1% H1 2026 1.9% 2026 fcst 2.0%
Sources: Dallas Fed Texas Economic Indicators [8]; Employment Forecast, Jul 17 [9]; Texas Update, 2026 [48].

State-Level Operating Factors

Costs and policy that hit DFW net operating income directly.
FactorStatusRead-through
Property insuranceTexas FAIR Plan rate changes effective Sep 1 [10]Watch renewals. Multifamily policy quotes $3.2K to $9K per year [11]
Property tax2026 apartment appraisals: Dallas County +19.6% to $81.8B; Tarrant County +23.8% to $45.3B (after +25% in 2025) [49]Effective rates about 2.0% (Dallas) and 2.1% (Tarrant); higher values mean higher bills
Population and migrationDFW #1 in U.S. +100K residents, +47K households, year over year (Mar) [12]Core demand driver for absorption
Energy sectorOil elevated on Hormuz risk [16]Supports Houston and Permian jobs; indirect DFW benefit
Peer metros (Q2 2026)Austin rents +1.3% in Q2, first gain since 2022 [45]. Houston vacancy 7.1%, down 40 bp; rents -2.3% YoY [46]. San Antonio occupancy 93.1% [47]All three Texas metros are turning at the same time as DFW

National Rates and the Fed

The Fed held at 3.50 to 3.75% in July with an unusual three-member vote in favor of raising. Markets are now pricing two quarter-point increases, September and December. The 10-year Treasury finished Aug 14 at 4.68%.

10-Year Treasury
4.68%
Up from about 4.2% earlier in 2026
U.S. Treasury, Aug 14 [1]
Fed Funds Target
3.50 to 3.75%
Held Jul 29. Three votes to raise
Federal Reserve [17]
SOFR
3.65%
Aug 21. Up from 3.61% in June
NY Fed / FRED, Aug 21 [2][35]
Next Fed Meeting
Sep 15 to 16
Market pricing a quarter-point increase
Federal Reserve [17]; CNBC [18]
CPI / PCE
3.4% / 3.7%
Jul CPI 3.4% (core 2.5%). Jun PCE 3.7% (core 3.3%)
BLS, Aug 12 [36]; BEA, Jul 30 [37]

The Rate Stack: How a DFW Loan Gets Priced

Stacked from the Fed's policy rate up to what a borrower actually pays. Hover each layer.
Fed Funds midpoint 3.625% +1.05% +1.52% spread 10-year Treasury 4.68% Agency 5-year 6.20% 0%
Policy rate (Treasury)Term premium (Treasury)Lender spreadAll-in loan rate
Sources: Federal Reserve [17]; U.S. Treasury [1]; Select Commercial / Apartment Loan Store (Aug 21) [3][4]. Decomposition is illustrative; spreads vary by leverage, term, and borrower.

10-Year Treasury vs. 30-Year Mortgage Rate, 1980 to today

Why apartments rent: the mortgage rate sets the cost of buying a house, and the gap between it and the Treasury is the part of that cost the market has added since 2022. Monthly averages, percent. Lower panel: mortgage rate minus Treasury, in percentage points. Hover for any month.
10-Year Treasury
4.70%
Daily close, 2026-08-24
FRED DGS10 [205]
30-Year Mortgage
6.65%
Freddie Mac PMMS, week of 2026-08-20
FRED MORTGAGE30US [206]
Spread, latest month
1.99 pts
1980 to date average 1.84 pts
FRED, monthly averages [205][206]
0%4%8%12%16%024198019841988199219962000200420082012201620202024 Spread, percentage points
30-year fixed mortgage (Freddie Mac)10-year TreasurySpread
Sources: FRED series DGS10 [205] and MORTGAGE30US [206], monthly averages of daily and weekly data, refreshed each build (2026-08-26).

Global Backdrop

Global bond yields moved higher this month as traders scaled back expectations for 2026 rate cuts. Energy prices are elevated on Strait of Hormuz supply risk, which helps Texas producers but adds to inflation.

10-Year Government Bond Yields

Where the U.S. sits vs. peers. Hover a bar for context.
0% 2% 4% 6% United States 4.68% United Kingdom ~4.6% Germany ~2.9% Japan 2.88%
Sources: ETF Trends / U.S. Treasury (Aug 14) [1]; Trading Economics [14]; FXStreet [15]; Euronews (Aug 17) [39]. UK and Germany approximate.

Global Policy and Risk Snapshot

Central-bank posture and macro risks that feed into DFW borrowing costs.
FactorStatusWhy DFW cares
European Central BankOn hold. Virtually no further cuts pricedKeeps global yields anchored higher
Bank of EnglandExpected quarter-point cut to 4.00%Gilt yields still rising, an inflation worry
Bank of JapanJGB 10-year at 2.88%, highest since 1996 [39]Less Japanese demand for Treasuries, so higher U.S. yields
Oil and energyElevated Hormuz supply riskPlus for Texas jobs and royalties; minus for inflation and Fed posture
U.S. dollarIndex 98.55 on Aug 22, lowest since May; down 2.5% over the month [38]A weaker dollar makes U.S. property cheaper for foreign buyers
Sources: Trading Economics [14]; FXStreet [15]; Business Standard / Reuters [16].

Sources

Show the 54 sources cited in this edition
  1. ETF Trends: Treasury Yields Snapshot: August 14, 2026; U.S. Treasury: Daily Par Yield Curve
  2. FRED: Secured Overnight Financing Rate (SOFR); DGS10
  3. Select Commercial: Freddie Mac Multifamily Loan Rates (7/27/2026)
  4. Apartment Loan Store: Multifamily Loan Rates 08/21/2026
  5. FHFA: 2026 Multifamily Loan Purchase Caps
  6. Janover: Multifamily Mortgage Rates
  7. Freddie Mac: Primary Mortgage Market Survey
  8. Federal Reserve Bank of Dallas: Texas Economic Indicators; Momentum builds in the Texas economy; wage pressures broaden
  9. Federal Reserve Bank of Dallas: Texas employment forecast strengthens (Jul 17, 2026)
  10. ReSource Pro: New Texas FAIR Plan Rates Effective Sept. 1, 2026
  11. Wexford Insurance: Multifamily Property Insurance Cost in Texas
  12. D Magazine: DFW Apartment Market Rebalances as Demand Outpaces New Supply (Aug 2026)
  13. Trading Economics: Global Bond Selloff Deepens on 2026 Rate Repricing
  14. FXStreet: EUR/GBP ahead of BoE decision
  15. Business Standard / Reuters: Oil price and bonds
  16. Federal Reserve: FOMC Minutes, July 28 to 29, 2026
  17. CNBC: Divided Fed holds interest rates steady (Jul 29, 2026); Cambridge Currencies: Next FOMC 16 Sept 2026
  18. NextGen Properties: Dallas Multifamily Cap Rates 2026
  19. Colliers: DFW Multifamily Market Report 2026 Q1
  20. Matthews: Dallas-Fort Worth Multifamily Q1 2026
  21. CRE Daily: Dallas Multifamily Rents Slide in 2026
  22. Yardi Matrix: Dallas Multifamily Market Report, July 2026
  23. Northmarq: DFW rents and occupancy climb to open 2026
  24. Apartment List: National Rent Report
  25. CBRE: Q1 2026 U.S. Multifamily Figures
  26. Cushman and Wakefield: U.S. Multifamily MarketBeat
  27. Apartments.com: The Supply Slowdown: 2026 Multifamily Outlook
  28. NAHB: Multifamily Market Expected to Cool in 2026
  29. Bisnow: Bascom Group Sells Multifamily Community in Frisco
  30. Multi-Housing News: MLG Capital Buys DFW Community (Bell Partners / The Albee referenced)
  31. REBusinessOnline: Knightvest Capital Acquires 389-Unit Ardan West Village in Uptown Dallas (May 2026)
  32. Multi-Housing News: Mesirow Financial Buys 450 Units in Metro Dallas
  33. Bisnow: Trammell Crow JV, Richardson, DFW Deal Sheet
  34. Federal Reserve Bank of New York via FRED: SOFR, Aug 21, 2026; global-rates.com: Current SOFR
  35. BLS: Consumer Price Index, July 2026; CNBC: CPI report July 2026
  36. BEA: Personal Income and Outlays, June 2026; Advisor Perspectives: Core PCE 3.3% in June
  37. Vantage Markets: US Dollar Index falls to 98.55 (Aug 22, 2026); Trading Economics: U.S. Dollar
  38. Euronews: Japan's 10-year bond yield hits a 30-year high (Aug 17, 2026); Trading Economics: Japan 10-year yield
  39. BWE: Market Rates, as of Aug 24, 2026 (Fannie Mae DUS and Freddie Mac conventional fixed-rate ranges by term)
  40. The Crittenden Report: Bridge lenders are flocking to multifamily
  41. RRA Capital: The bridge lending market floodgates will open in 2026
  42. REJournals: North Texas multifamily turns the corner as the construction pipeline empties (Aug 17, 2026)
  43. Hoodline: Far North Fort Worth braces for 252 new apartments (Jan 2026)
  44. CRE Daily: Austin multifamily rents rise as supply glut starts to ease
  45. Northmarq: Houston multifamily vacancies trend lower, Q2 2026; Cushman and Wakefield: Houston Multifamily MarketBeat Q2 2026
  46. Colliers: San Antonio Multifamily Market Report Q2 2026
  47. Federal Reserve Bank of Dallas: Texas job growth expected to pick up following flat 2025; Texas Employment Forecast, Dec 2025
  48. O'Connor: Dallas County 2026 values; Tarrant County 2026 values; PropertyTaxes.Law: Texas rates by county
  49. REBusinessOnline: Texas news, Aug 21, 2026: Associated Bank provides $50.1M construction loan for Aura Brookview, Flower Mound
  50. Bisnow: Dallas-Fort Worth news, Jul 15, 2026: The Lucille, Uptown, financing secured
  51. Community Impact: Bryan Planning and Zoning advances two apartment projects (Aug 2026)
  52. FRED (Census data): Resident population, College Station-Bryan MSA; Brazos County
  53. Apartment List Research: Data and rent estimates downloads (city-level rent estimates, rent growth year over year, and vacancy index; monthly)
  54. U.S. Census Bureau: Building Permits Survey, place-level monthly and annual files (units authorized in buildings with 5 or more units)
Disclosures. Compiled Aug 24, 2026 from publicly available sources; figures are as reported by each source on the date shown and have not been independently verified. Where sources conflict, the range is shown. Items marked "Data unavailable" were not published or not captured in the period. Not investment advice.
Privacy. The feedback bar and subscription form are anonymous unless you choose to enter an email. We store an anonymous first-party browser identifier, the issue you rated, your rating, optional comments, scroll depth and time on page, and a coarse referrer category (search, social, email, direct). We do not store IP addresses; a short-lived one-way hash is used only to limit abuse and is discarded daily. Subscriber emails are held in a mailing list separate from any product waitlist and are used only to send this report.
You rated this edition. Update my rating