Best Cities in Texas for Multifamily Investments
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 14
- 2 min read
Multifamily real estate remains one of the most resilient and profitable asset classes in Texas. With strong population growth, landlord-friendly laws, and rising rental demand, investors are flocking to the Lone Star State to capitalize on long-term returns.
Here are the best cities in Texas for multifamily investments in 2025, based on market performance, economic growth, and rental demand.
1. Dallas-Fort Worth (DFW)
DFW tops the list 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
Investment 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
Investment Hotspots: The Woodlands, Sugar Land, Midtown
Insurance Tip: Consider flood and windstorm 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
Investment 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
Investment 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.
Wexford Insurance is your go-to source for commercial property insurance in Texas. We provide customized coverage for multifamily properties, including protection against property damage, liability, and loss of rental income. 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?
Apartment buildings, duplexes, townhomes, and mixed-use developments are in high demand.
3. Do I need separate insurance for each property?
Not necessarily. Wexford Insurance can bundle multiple properties under one policy for convenience and savings.
