DFW Market Pulse (Q2–Q3 2025): Deliveries Down, Demand Up

Dallas–Fort Worth’s wave of new supply is finally cresting. CBRE’s Q2 2025 figures recorded 94.3% occupancy, 8,691 units absorbed (vs. 7,318 in Q1), and 5,336 deliveries—a sequential drop in new completions. Average rents rose 0.4% QoQ to $1,551 and sales volumes accelerated.

Yardi Matrix’s July 2025 local snapshot shows a modest rent uptick after an extended lull, with stabilized occupancy ~92.6% in April, evidence of competitive pressure in submarkets with concentrated deliveries. Employment growth remained above U.S. averages, reinforcing long-run renter demand.

On the pipeline, Colliers notes 10 straight quarters of construction slowdown, with ~48,000 units in progress and ~8,700 expected over the next 12 months—consistent with a return to “normal” supply and better balance ahead.

Takeaways for operators and investors:

• Northern corridors (Frisco/McKinney/Denton) remain supply-heavy, requiring disciplined pricing and targeted concessions; inner-ring suburbs show faster rebalancing.

• Expect ongoing occupancy improvement as deliveries decline through 2025, setting the foundation for firmer rent growth in 2026.