Dallas continues to lead as a top market for long-term, sustainable multifamily investment, underpinned by strong economic fundamentals and demographic shifts that support enduring demand. Ranked the #1 U.S. real estate market to watch in PwC’s 2025 Emerging Trends in Real Estate Report, Dallas benefits from a diversified economy, consistent population growth, and relatively affordable housing.1 These factors contribute to its resilience and appeal to institutional investors in tandem with forecasted rent growth amid tightening market conditions.
Nationally, barriers to homeownership remain elevated due to rising prices and high interest rates, prompting a broader shift toward rental housing among demographics that have traditionally pursued ownership.2 In this evolving landscape, Dallas is uniquely positioned to support sustained multifamily demand, driven by its affordability, economic vitality, and capacity to attract and retain a growing renter population.
Chart 1: Dallas-Fort Worth Population Growth* Outpaces U.S. Average
* Annual % Growth Year-Over-Year
Source: CoStar3, Peakhill Capital
Home to the headquarters of numerous Fortune 500 companies, including American Airlines, Texas Instruments, and AT&T, with recent additions such as CBRE and McKesson, Dallas has continued to attract young professionals. Employment in Dallas is projected to continue to grow, increasing by 1.9% in the coming year, leading the nation in hiring projections.4 Fueled by Dallas’ fast-growing, diverse economy and a lower cost of living, the population is projected to continue to outpace the national average (Chart 1). As demographics continue to shift toward renting, Dallas’ incoming population is expected to continue to prioritize multifamily assets for housing.
On the supply side of the market, absorption began to lag slightly behind new deliveries in 2025, resulting in softer market conditions and a slowdown in construction activity. As of now, there are 28,000 units under construction, down from the peak of 64,000 units in mid-2022, the lowest level since 2015.3
Chart 2: Dallas-Fort Worth Multifamily Market Forecasted to Rebalance
Source: CoStar3, Peakhill Capital
In response to the anticipated demand and slowdown in new supply, U.S. asset management firm Lument forecasts that the current oversupply will be absorbed within the next 12 months.5 This recovery is expected to create favorable conditions for new development and acquisition opportunities as the market continues to tighten promoting continued rent growth (Charts 2 and 3).
Chart 3: Dallas-Fort Worth Rents Set to Rise
Source: CoStar3, Peakhill Capital
While demand is broad-based, most 2025 multifamily deliveries are concentrated in the high-growth northern submarkets of McKinney, Plano, and Frisco.4 Located in Collin County, the third-fastest-growing county in the U.S. from 2020 to 2024, characterized by its employment opportunities, affordability, and good public schools.6 These areas offer investors a strategic entry point into some of the nation’s most dynamic rental markets.
For investors, McKinney offers a compelling mix of growth, affordability, and infrastructure investment. A high-growth suburb approximately 30 miles north of Dallas, McKinney, is poised to receive the bulk of new apartment deliveries in 2025.4 With a cost of living below the national average, McKinney remains an attractive option for renters, amidst continued inflation, and housing affordability concerns across the country.7 Annual population growth in McKinney is significantly outpacing the U.S., indicating the strong absorption potential of current vacancies and incoming deliveries (Chart 4). Further boosting the area’s outlook is a recently approved airport project, which is expected to drive job creation and increase long-term rental demand.8
Chart 4: McKinney Population Growth* Outpaces U.S. Average
* Annual % Growth Year Over Year
Source: World Population Review9, Census Government Data10, Peakhill Capital
Located just 30 minutes from downtown Dallas, Plano is a popular suburb for young families. Ranked 4th among 180 U.S. cities for raising a family, driven by its high-rated schools, quality healthcare access, and affordable cost of living, Plano’s population has continued to grow, expanding by 2.7% between 2020 and 2024.11,12 Notably, Plano’s tech sector is projected to grow by 12% in 2025, primarily supported by data center projects, such as Lambda Inc., which plans to occupy a $700 million data center currently under construction.13,14 Collectively, these factors position Plano as a thriving hub for both families and young professionals, driving long-term multifamily demand.
Nearby, the City of Frisco shares many of the same strengths as Plano and McKinney. Also located approximately 30 minutes north of Uptown Dallas, Frisco’s average rent price is 6% lower than the national average.15 In tandem with the lower cost of living, families and young professionals are drawn by strong public schools, growing job options, and active community life. With steady population growth, the market is well-positioned to absorb new multifamily supply.16
In summary, Dallas continues to stand out as a top multifamily investment market in 2025, fueled by job growth, affordability, and booming population pockets, especially in northern suburbs like McKinney, Plano, and Frisco. The opportunities remain tightly concentrated in these high-demand submarkets, where rental demand is projected to outpace supply. For Peakhill, focusing on these localized submarkets is key to capturing strong returns in an otherwise competitive landscape.
Key Insights
- Investors remain drawn to Dallas’ multifamily market as population growth remains strong, fueled by economic fundamentals and relative affordability.
- Multifamily demand looks to outpace supply in the next year, creating optimal investment conditions for acquisitions and new developments in Dallas.
- Peakhill is targeting northern suburbs like McKinney, Plano, and Frisco, which stand out as high-demand submarkets, driven by affordability, strong employment, and quality schools.
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Footnotes
- PwC. (2025). Emerging Trends in Real Estate. Retrieved May 10. ↩︎
- Cilluffo, A., Geiger, A. W., & Fry, R. (2017, July 19). More U.S. households are renting than at any point in 50 years. Pew Research Center. ↩︎
- CoStar (2025). Dallas-Fort Worth Multi-Family Market Report. Retrieved May 29. ↩︎
- Marcus & Millichap. (2025). Dallas-Fort Worth Multifamily Market Report. Retrieved May 9, 2025. ↩︎
- Beltran, S. (2025, March 2). Dallas multifamily market: Ready for a rebound. Lument. ↩︎
- O’Brien, K. (2024, October 23). Large submarkets with big inventory growth. RealPage. ↩︎
- Apartments.com. (n.d.). Rental market trends in McKinney, TX. Apartments.com. Retrieved May 12, 2025. ↩︎
- Preisendorf, M. (2025, May 7). Major milestone: McKinney moves closer to commercial flights with new airport construction deal. Local Profile. ↩︎
- World Population Review. (n.d.). McKinney, Texas population 2025. World Population Review. Retrieved May 12, 2025. ↩︎
- U.S. Census Bureau. (2023). 2023 National population projections summary tables. U.S. Census Bureau. Retrieved May 12, 2025. ↩︎
- Taylor, D. (2024, May 28). Plano named fourth best US city for raising a family. NBC 5 Dallas-Fort Worth. ↩︎
- U.S. Census Bureau. (n.d.). QuickFacts: Plano city, Texas. U.S. Department of Commerce. Retrieved May 23, 2025. ↩︎
- Zbirak, K. (2024, November 6). Plano Texas small business growth forecast 2025. Connexion Solutions. ↩︎
- WFAA. (2025, May 7). Nvidia-backed AI computing firm has plans for $700M Plano data center. ↩︎
- Apartments.com. (n.d.). Frisco, TX rent market trends. Retrieved May 14, 2025. ↩︎
- Dodd, A. (2025, January 6). The 15 best long-term U.S. rental markets in 2025. Minut. ↩︎
