Texas markets lead downshift in multifamily construction

“Multifamily construction is experiencing a sharp decline across Texas, with Austin, Dallas-Fort Worth and Houston leading the slowdown nationally in the past year in terms of overall units. Meanwhile, on a percentage basis, San Antonio has seen the most dramatic slowdown.

High interest rates, construction costs and tightening lending standards have contributed to reduced development. The current slowdown should allow supply to shift closer to equilibrium to demand over the next year.“