As new development in Dallas-Fort Worth’s multifamily market continues to cool, investor attention has turned to the region’s stock of older properties. 

For the 12th straight quarter, the metro's development pipeline contracted, and the 12,000 units absorbed in DFW during the second quarter were among the highest totals in the nation. But shifting fundamentals, financing pressure and elevated levels of distress in the region’s pre-1990 properties have created an opportunity for investors. 

“We're this high-growth engine market that essentially is on sale right now,” Colliers Vice Chairman Mark Allen said. “We have a ton of distress, and so investors are starting to notice that from around the country and are really looking at that as a great entry point into Dallas.”

Multifamily sales activity has experienced a big shift over the past year as buyer demand for the upper end of the quality spectrum has cooled amid the conflict in Iran and spiking interest rates. 

Last year, around 60% of the multifamily property sales in DFW were for developments built since 2010. But in 2026, the majority have involved properties built before 1990, Allen said. 

Prices for some of those vintage properties are down as much as 60% depending on the level of distress, but they’re largely being ignored by institutional investors. Allen said a strong contingent of local buyers is interested in these turnaround projects, and the properties are also enticing new investors from around the world. 

"It obviously carries more risk, but it carries more reward for the investors," Allen said. 

DFW’s rapid in-migration and job growth put the region at the top of the roster for apartment investors for several years and pushed the metro’s multifamily pipeline to record heights. The pipeline peaked in 2023 at more than 64,000 units under development but has slowed since then. 

In the second quarter, Colliers reported that DFW had more than 43,000 units under construction, though just over 24,000 are scheduled to be completed over the next 12 months. 

That oversupply of new multifamily units left much of the region’s vintage stock in higher-density areas to fall into distress. 

“You can look in any submarket across Dallas-Fort Worth and probably find some distress," Allen said. 

He cited areas of Lake Highlands as well as pockets in southwest and east Fort Worth as areas that have attracted investor attention. 

Colliers helped facilitate the sale of the 158-unit Bella Vista Park community in East Dallas to an undisclosed investor this month. The nearly 60-year-old multifamily property is a good example of where the market is now, as Allen said buyers need a total cost basis that makes sense and a yield attractive enough to get investors off the sidelines.

Some landlords have had to increase concessions to maintain occupancy, prompting other properties in those areas to do the same. 

"It's kind of a race to the bottom in some of those areas that are high-density multifamily neighborhoods because there's just so much competition," Allen said. 

Many owners who bought properties at high prices several years ago are now struggling because of elevated interest rates and properties not performing as expected. They’re also dealing with escalating expenses due to increasing utility rates, property taxes and rising wages for property-level staff. 

Some lenders are considering foreclosing on properties to create opportunities for new investors who have the cash to buy and renovate them. 

Allen said DFW’s multifamily sector is approaching the bottom of the market cycle, but the opportunity for new investors to pick up properties at a discount may only last another 18 months. 

He saw some green shoots during the spring and summer as concessions have begun to come down in the metro's high-density submarkets. 

"The expectation through next year is that concessions start to burn down," Allen said. "Once the concession burns off … eventually occupancy will increase, and then the asking rents will start to increase over time."