Texas Multifamily Maturity Wall: What Owners in DFW, Houston, and Austin Face in 2026-2027
Terrydale Capital
Sep 15, 2026 7 Min read
A multifamily owner in Dallas signed a five-year loan in 2021 at 3.4 percent. That loan comes due in the second half of 2026. The same property today, refinanced at a market rate near 6.5 percent, sees its annual debt service on a $10 million loan balance rise from roughly $340,000 to $650,000. That is an extra $310,000 a year the property has to cover, and it has to come from somewhere: higher rents, lower distributions, or a smaller loan amount at closing. This is the maturity wall, and in Texas it does not look the same in every metro.
Dallas-Fort Worth carries the heaviest volume. Transwestern's tracking shows more than $2.0 billion in DFW multifamily loans maturing in the second half of 2026, another $1.69 billion in the first quarter of 2027, and $1.46 billion more in the second quarter of 2027. That is a lot of refinance decisions landing in a short window. The upside for borrowers here is that DFW fundamentals are improving, with occupancy climbing to 93.8 percent in the first half of 2026 and rents rising to about $1,496 a month. A stabilized property maturing into this environment has a real shot at a clean agency refinance. A property still working through lease-up or below-market occupancy is a different conversation, and usually points toward bridge financing until the numbers catch up.
Houston is in the best position of the four major metros for maturities hitting now. Stabilized occupancy is around 92.2 percent and some forecasts put revenue growth as high as 4.9 percent heading into 2027. A borrower with a Houston property maturing this year is generally refinancing into improving rent trends rather than fighting them, which matters when a lender is underwriting trailing income against a new debt service number. Current index rates are worth checking against that trailing income before assuming a number.
Austin is carrying the state's heaviest supply overhang, though the picture is turning. The metro absorbed nearly twice as many units as it delivered in the first quarter of 2026, but Class B and C vacancy is still running near 11.5 percent, and Austin leads Texas metros in rent concessions. An Austin loan maturing into this environment often needs a lender who will look past a soft trailing twelve months and underwrite to where occupancy is heading, not just where it has been. That is usually a bridge-to-agency structure, moving to permanent multifamily financing once occupancy stabilizes rather than trying to force an agency takeout too early.
San Antonio has the weakest near-term outlook of the four. Distress is rising and pricing remains under pressure, but the construction pipeline has also thinned to about 800 units for 2026, the slowest pace since 2011. Less new supply competing for renters is a real tailwind, it just has not shown up in the numbers yet. An owner maturing in San Antonio right now needs an advisory conversation that separates a temporary rough patch from a permanently impaired asset, because those two situations get financed very differently.
None of this changes the basic math a borrower needs to run before a loan comes due. What is the current debt yield at today's net operating income and today's rate. What loan amount does that support. Running those numbers against a refinance calculator is a useful starting point, but the real answer comes from seeing live terms, not modeled ones. That is what Terrydale Live is built for: real-time lender quotes and term sheets so a borrower knows what a maturing loan actually qualifies for today, not what it qualified for in 2021.
We shop maturing multifamily loans across our full range of loan programs and our agency, bank, and bridge lender network so borrowers see everything actually available for their property and their timeline, not just the first term sheet that comes back. For more on refinance timing more broadly, see our guide to refinancing commercial property in Texas. If a loan is maturing anywhere in Texas over the next eighteen months, the right time to start that conversation is now, not the month before it comes due.
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Headquartered in Dallas, Texas, Terrydale Capital is a leader in commercial real estate financing. We have close relationships with the nation’s top banks, lenders & family offices allowing us to provide the most competitive financing solutions in the market.
