Best Cities in Texas for Buying Multifamily Properties
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 20
- 2 min read
Texas continues to dominate the multifamily real estate market in 2025, thanks to its booming population, landlord-friendly laws, and strong rental demand. Investors are drawn to the Lone Star State for its economic resilience, tax advantages, and diverse property opportunities. Whether you're a seasoned investor or just entering the market, choosing the right city is key to maximizing returns.
Top Cities in Texas for Multifamily Property Investment
1. Dallas-Fort Worth (DFW)
DFW leads the state with over $27.8 billion in multifamily investment volume. The metroplex benefits from:
Rapid population growth (122,000+ new residents annually)
Diverse job sectors: tech, finance, healthcare, logistics
High rental demand across Class A, B, and C properties
Hotspots: Irving, Grand Prairie, Arlington, Fort Worth outskirts
Insurance Tip: Protect against property damage and liability with Wexford’s tailored coverage.
2. Houston
Houston ranks sixth nationally in multifamily investment volume, with $17.2 billion. The city’s strengths include:
Affordable housing
A diversified economy (energy, healthcare, education)
Steady rental income and low vacancy rates
Hotspots: The Woodlands, Sugar Land, Midtown
Insurance Tip: Consider windstorm and flood coverage for Gulf Coast properties.
3. Austin
Austin’s tech boom has made it a magnet for young professionals and investors. With $9.2 billion in multifamily investment volume, it’s a top growth market.
Home to Tesla, Oracle, Google campuses
High rental yields in urban and suburban areas
Strong demand for Class A and mixed-use developments
Hotspots: East Austin, Round Rock, Pflugerville
Insurance Tip: Business interruption coverage is key in high-growth zones.
4. San Antonio
San Antonio offers affordability and consistent population growth. With $6.5 billion in investment volume, it’s ideal for workforce housing and value-add opportunities.
Cost of living 8% below national average
Strong demand for duplexes and small apartment complexes
Growing healthcare and military sectors
Hotspots: Alamo Heights, Leon Valley, Universal City
Insurance Tip: Bundle multiple properties under one policy with Wexford Insurance.
Final Thoughts
Texas is a multifamily investment powerhouse. Whether you're targeting high-yield urban markets or stable suburban communities, cities like Dallas, Houston, Austin, and San Antonio offer strong returns and long-term growth. As you grow your portfolio, Wexford Insurance is here to protect your investment with customized commercial property insurance solutions. From property damage to loss of rental income, we’ve got you covered. Contact now!
FAQs
1. Why is Texas ideal for multifamily investing?
Texas offers population growth, no state income tax, and landlord-friendly laws—making it attractive for investors.
2. What types of multifamily properties are popular in Texas?
Class A apartments, duplexes, mixed-use buildings, and workforce housing are in high demand.
3. How can I protect my multifamily investment?
Partner with Wexford Insurance for tailored coverage including property damage, liability, and rental income protection.