With the significant growth in the number of homeowners that rent their homes, the demand for apartment assets also increases. According to the Census Bureau Housing data analysis conducted by the Pew Research Center, one out of five Texans rents their homes. Thus, the demand for rental properties will continue to grow, and the rental market needs to cope up and produce more apartments to accommodate this demand. 

Furthermore, it also shows that more household owners are renting today by necessity and not by choice. Some of them can’t afford the down payment or can’t even qualify for a mortgage. While some homeowners are deciding not to purchase single-family homes due to the outrageous prices, fees, and borrowing costs. These are the driving forces of the rental properties market.


With its top score in the economy, infrastructure, and workforce sectors, Texas ranked No. 1 for the fourth time in CNBC’s America’s Top State for Business last 2018.  The state also ranked #2 in the Largest State Economies for the last 50 years. And the Lone Star State also added over 2.1 million net new jobs over the last 13 years, from 2005 to 2018. This data make Texas the nation’s largest civilian labor force. 

Texas also became the top business destination and became the “Best State for Business” for 12 years in a row.  This state became the top exporting state for 14 consecutive years now with exports valued at $251 billion. From petroleum products to computers and electronic products are Texas’ top exports. The state is also known for having a low flat rate of corporate tax levies, has no personal income tax and is considered a right-to-work state. 

texas market
Source: CNBC

Texas Population Growth

    • Texas’ population (as of November 2018): 28, 304, 600 with a 1.3% population growth
    • And 370, 000 were added to the population last 2018
    • One in Texan residents is an immigrant 

Job Growth

    • 2.8% job growth last 2018
    • Added 350, 000 jobs over the past year (Source: businessintexas.com)
    • 102 out of 1,000 largest public and private companies, including giant companies such as 







            (Source: Forbes)

Economic Development

    • There is $2 trillion worth of commodities per year. 
    • Home of over 5,00 life sciences firms, including the world’s largest medical center, Texas Medical Center
    • There are currently 23,701 clinical trials underway

(Source: CNBC)



Since 2004, 506 relocated companies moved to Austin and resulted in having 51, 214 direct jobs within the state. And 81 companies expanded in the region. Some of the companies include:

      • Dropbox
      • Visa
      • Merck
      • Amazon
      • HID
      • Facebook
      • The Home Depot

In 2016, the total revenue of all the companies who moved to Austin was at $1.6B. There are also 112 VC deals made within the region that generated $843 M income.


2019 Investment Outlook in Austin

In the first half of 2019, there’s an increase in workforce housing as the number of high-income earners increases in the metro. Houston’s also growing its reputation as Texas’ tech hub which attracted many well-known companies to expand in the area. Through this, there’s a positive movement with both demand and rent growth. This movement reflects the improvement being experienced within the city. 

Employment forecast rate: 2.4% (or 25, 200 jobs)

Rent growth: 4.2 & ($1, 916 per month)

Vacancy Rate: 6.1%

austin performance index

Source: Institutional Property Advisors (IPA), 2019

Dallas/Fort Worth

The Dallas-Fort Worth region ranked as one of the nation’s fastest-growing areas. With its population of 7, 399, 662 last 2017, there’s a reported 15.1% change from the year 2010 to 2017. With the population growing, the region had to redevelop and re-energize their central business districts. There’s also an emergence of affordable housing compared to other major metropolitan areas. This simply means employees can still enjoy a higher standard of living at lower costs.


2019 Investment Outlook in Dallas-Fort Worth

The rental inventory in the metroplex expanded by 10 percent, or 74, 000 units. Also, the creation of 400,000 jobs and robust in-immigration supported the rental demand. With the consistent strong employment and population growth figures in Dallas/Fort Worth will continue to motivate investors. These factors also keep the region as one of the most active for transactions with above $20 million in the nation.

Employment forecast rate: 2.8% (or 105, 000 jobs)

Rent Growth: 3.8% ($1, 468 per month)

Vacancy Rate: 6.1%

Source: Institutional Property Advisors (IPA), 2019


Houston’s population in 2017 was 6, 892, 427, and the state would’ve been the 15th largest population in the U.S. if it’s a state. The employment rate in the service-providing sector is at an all-time high, 2, 598, 600 jobs as of October 2018. With an increase of 3.9% from 2018 to 2019, Houston led the nation in job growth with 117, 800 jobs made available around 2018. 


There’s also a $192 B in foreign trade that passed the Houston-Galveston Customs District last 2017 making Houston the Seventh Busiest in the U.S. Meanwhile, realtors within the region sold 98, 967 homes in just 12 months ending October 2018.


2019 Investment Outlook in Houston

Houston is one of the top employment markets in the U.S. Located at a prominent center of global trade, Houston has led to employment opportunities. Opportunities such as in the energy, manufacturing, and transportation sectors are in-demand which strengthens the job growth within the city. And job and population is the driving force of multifamily demand in Houston. 

Employment forecast rate: 3.2% (or 101, 000 jobs)

Rent Growth: 3.0% ($1, 576 per month)

Vacancy Rate: 6.8%

Houston performance index

Source: Institutional Property Advisors (IPA), 2019

San Antonio

The number of completed units made in 2018 was around 5, 849 units. The additional households were at 17, 600 which led to net absorption of 4, 265 apartments. And the effective monthly rate was at $947 monthly, a 1.7% year-over-year gain. With the job growth the region is facing, 13, 000 workers were hired, a 1.2% annual increase.


2019 Investment Outlook in San Antonio

San Antonio’s metrics continue to improve to grow within the city. The steady job growth motivates more investors to deploy capital within the city. Also, the city shows an increase in rent growth, from 5 to over 8 over the first half of 2019. The city’s liquidity, which is at 8, shows the high demand for and the availability of properties for acquisition. This just shows that the demand for rental properties remains in place as more jobs are created within San Antonio.

Employment forecast rate: 2.1% (or 22, 000 jobs)

Rent Growth: 5.2% ($1, 284 per month)

Vacancy Rate: 6.6%

san antonio performance index

Source: Institutional Property Advisors (IPA), 2019