Texas has added a large number of apartments in recent years, but the resulting supply pressure varies by market. Looking only at statewide totals can hide where the imbalance is most concentrated.
A Spring 2026 analysis from the Texas Real Estate Research Center compared each market’s share of the apartment surplus with its share of total apartment inventory. Dallas–Fort Worth’s shares were close: about 35% of the net surplus compared with 36% of inventory. Houston accounted for about 22% of the surplus and 29% of inventory. Austin stood out in the other direction, representing about 22% of the surplus but 13% of inventory. San Antonio accounted for about 12% of the surplus and 9% of inventory.
Those figures show why local conditions matter. A statewide headline about apartment oversupply does not tell an investor how a specific submarket, property type, or rent range is performing. Competition from new deliveries, population and household growth, and the pace of leasing can differ considerably from one city to another.
For owners, investors, and renters, the practical takeaway is to look closely at the specific market and property. Ask how much new supply is nearby, how quickly comparable units are leasing, and whether rents and concessions are changing. Those details can offer a clearer view of risk than a statewide average.
Apartment markets can rebalance over time as new construction slows and demand absorbs available units. Until then, a careful, local analysis is essential before making a purchase, development, or leasing decision.
Source: Daniel Oney, “The Texas Apartment Surplus Built Up Since 2020 Is Not Evenly Spread Across Markets,” Tierra Grande: The Journal of Texas Real Estate Research, Spring 2026, p. 3.