George Smith Partners’ Matt Hiller Assesses Growth Outlook at Connect’s Upcoming Texas Multifamily Event in Dallas

Texas is still in the midst of a population boom, with the state adding over 2 million new residents since 2020. Those new residents are going to need a place to live. And that fact is not lost on investors and developers of multifamily communities. At the upcoming Connect Texas Multifamily event (Thursday, August 28th), leading industry names will explore the key economic indicators facing the market and discuss strategies for navigating those changes.

As a panelist at the upcoming conference, Matt Hiller, Director at George Smith Partners, shared a preview of what attendees will learn during the Texas Market Outlook: Economic Drivers & Regional Dynamics discussion.

• Texas multifamily growth has been driven in recent years by certain macroeconomic trends driving demand, such as in-migration of residents as well as corporations. Are we seeing any shifts occurring now in these trends?
• It’s still early, but Texas is at the forefront of the U.S. reshoring efforts with 40k net new jobs to the state. While this is just a minor figure to the overall economy, this has much bigger impacts within the communities benefitting from the new jobs and capital investments. This is a very positive trend that will hopefully continue as the reshoring efforts continue. Another emerging trend is the large-scale data center investment to meet the power demands of AI. These data centers are highly capital intensive and draw in some of the largest investors and most advanced tech companies from across the globe to invest in Texas.  
• What industries are driving economic growth in Texas in 2025? Are these concentrated in a few metro areas or are they facilitating growth across the state?
• Energy will always be the leading industry in Texas, but finance has emerged as a growing driver making a significant impact. Major companies are setting plans to move their HQ2’s into the Dallas market. Goldman Sachs, JP Morgan, and Wells Fargo have committed to large developments and thousands of jobs each within DFW. In addition, Nasdaq is relocating its second-largest U.S. presence from Chicago to Dallas. In addition, Texas is launching its own stock exchange (the TXSE) which will further elevate the state’s financial profile.
• Are we seeing regions or metro areas gaining ground in terms of multifamily investment? Conversely, are there regions of Texas where demand has begun to taper off?
• Certain submarkets in Fort Worth have been gaining momentum relative to the broader Texas investment and select pockets in Dallas and Houston remain attractive. On the flip side, Austin has been the poster child for oversupply, which has led to declining rents, increased vacancy and concessions as the market continues to absorb the influx of recent deliveries. San Antonio has also faced headwinds, with flat to declining rents over the past couple of years.
• What multifamily investment strategy is lowest-risk at the moment?
• Newer assets in established neighborhoods with strong school districts remain the lowest-risk play. Infill locations are especially attractive, as they are less at risk for competing supply being developed nearby.

Curious how Texas’ surging economy, escalating costs, population growth, and shifting demand are shaping multifamily development and investment in 2025? Be there for the Texas Market Outlook discussion at Connect Texas Multifamily, when the industry’s experts break down regional trends, key indicators, and actionable strategies—Register now to gain the edge: www.ConnectTXMF2025.com | EVENT DATE: Thursday, August 28th | VENUE: The Joule, Dallas