- Investors are targeting Dallas-Fort Worth’s pre-1990 apartment stock as distress deepens, with prices down as much as 60% while institutional buyers largely stay on the sidelines.
- DFW’s multifamily pipeline has contracted for 12 straight quarters after peaking above 64,000 units in 2023, even as the metro absorbed roughly 12,000 units in the second quarter, among the nation’s highest totals.
- Brokers say the discount window may only last about 18 months before concessions burn off, occupancy recovers, and rents in the region’s high-density submarkets start climbing again.
DFW multifamily distress in pre-1990 buildings is creating a rare entry point for investors even as the region posts some of the strongest absorption numbers in the country. Prices for these vintage properties have fallen by as much as 60%, depending on the level of distress, as owners who bought near the top of the market run into refinancing walls, according to Bisnow. For investors willing to take on turnaround risk, brokers say the region’s aging stock has rarely looked cheaper.
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Where DFW’s Distress Is Concentrated
DFW’s multifamily boom followed rapid in-migration and job growth. Developers responded by adding units at a record pace.
The region’s construction pipeline peaked at more than 64,000 units under development in 2023. That surge flooded high-density submarkets with new competition.
Older properties in those same corridors have absorbed much of the fallout. “We’re this high-growth engine market that essentially is on sale right now,” Colliers Vice Chairman Mark Allen said.
“We have a ton of distress, and so investors are starting to notice that from around the country and are really looking at that as a great entry point into Dallas.”
The Details
The metro’s development pipeline has contracted for 12 straight quarters. Colliers reported more than 43,000 units under construction in the second quarter.
Just over 24,000 units should deliver over the next 12 months. Even with that supply overhang, DFW absorbed roughly 12,000 units in the second quarter.
That ranked among the highest totals of any U.S. market.
Last year, properties built since 2010 accounted for roughly 60% of DFW multifamily sales. In 2026, older properties have made up the majority of sales.
Most of those buildings date to before 1990. This month, Colliers helped sell the 158-unit Bella Vista Park community in East Dallas.
The property is nearly 60 years old. An undisclosed investor purchased the community.
The Buyer Shift
That reversal marks a sharp change from the flight-to-quality buying that drove much of DFW’s earlier multifamily absorption boom.
Rise48 Equity offers one example. The firm acquired the 40-plus-year-old Rise Apollo Heights community in Garland last year.
The purchase came at a discount of more than 30%.
Institutional capital has largely stayed on the sidelines for these turnaround deals, Allen said. Local buyers have filled much of that gap.
A growing pool of investors from outside the U.S. has also entered the market. “It obviously carries more risk,” Allen said, “but it carries more reward for the investors.”
Why It Matters
Distress is not limited to one submarket. Allen said investors can find stressed properties across nearly every corner of Dallas-Fort Worth.
He pointed to Lake Highlands and parts of southwest and east Fort Worth as areas attracting attention.
Some landlords have offered deeper concessions to retain tenants. Nearby competitors have followed suit.
Allen called the resulting competition “a race to the bottom” in high-density neighborhoods.
Higher interest rates have added to the pressure. So have rising utility costs and property taxes.
These costs have hit owners who bought when property prices stood much higher. The trend echoes recent Dallas foreclosure activity elsewhere in the metro.
Some lenders are now considering foreclosure themselves. Their goal is to transfer distressed properties to buyers with the cash needed for renovations.
What’s Next
Allen said DFW’s multifamily market is approaching the bottom of its cycle. However, the window to buy at a discount may last only another 18 months.
He pointed to early green shoots across the market. Concessions have started to ease in high-density submarkets during the spring and summer.
If that trend continues, Allen expects concessions to decline further next year. That would give occupancy room to recover.
Eventually, he expects asking rents to start climbing again.
