Dallas-Fort Worth Q2 2026 Market Report

Key Takeaways

• Trailing 12-month absorption of 26,219 units has nearly matched the 28,232 units delivered, with Q2 2026 absorption of 10,243 units marking a significant acceleration from the 5,316 units absorbed in Q1.
• The construction pipeline is contracting decisively—trailing 12-month starts fell to 18,442 units from 28,572 a year ago, and the 30,545 units under construction (3.3% of inventory) are down 27% year over year.
• Effective rents of $1,460 remain 2.8% below year-ago levels, but the 0.6% quarterly gain marks the first positive sequential movement in four quarters, while occupancy of 90.1% reflects a 70 basis point annual decline.

Market Outlook

Dallas-Fort Worth is positioned in the late stages of its supply cycle, with deliveries and starts both declining and absorption gaining momentum. The under-construction pipeline of 30,545 units (3.3% of inventory) will sustain competitive pressure through mid-2027…