Despite what national headlines might suggest, the story in Texas isdifferent.
According to RealPage, Houston justposted one of the strongest demand surpluses in the country, absorbingover 8,000 more units than were delivered in the past year. Dallas wasn’t far behind, outpacing new supplyby 3,500+ units. These are excitingmetrics in today’s market—and they signal something important:
Over the past 18–24 months, Texas led the nation in new multifamilyconstruction. But that construction wave is tapering off—sharply.
The result? Tightening fundamentals in the face of declining newsupply.
These aren’t speculative trends, they’re hard numbers reflecting realleasing velocity and renter demand.
So, what are we doing at Lone Star Capital?
We are leaning into these strong Texas metros with real job growth, notjust headline rent growth. We arepositioning investor capital now, while distress and dislocation still createopportunity. We are also takingadvantage with our strong team that knows how to navigate compressed margins,rising costs, and changing cap rate environments.
Texas multifamily is entering a window of supply constraint and demandstrength and that’s a powerful setup for long-term value creation. At Lone Star Capital, we’re tracking thisclosely and actively acquiring in the markets where demand is outpacingdeliveries.
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