Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

The Texas Multifamily Crash

13 Oct 2026 · 1 min

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1:24

In this discussion, speakers highlight a looming crisis in Texas multifamily real estate, noting that $778 million in apartment loans are slated for foreclosure auction this month, concentrated in the Texas Triangle submarkets of Dallas, Houston, San Antonio, and Austin. They trace the problem to a 2020‑2021 boom when investors over‑purchased and over‑built in these hot markets. Christian Osgood frames the situation as a typical market‑cycle correction, explaining that owners who bought at peak prices now face refinancing pain, while the current downturn presents a buying opportunity for investors willing to scale through the dip. He emphasizes that despite the foreclosure wave, Texas continues to attract residents and businesses, underscoring that the distress stems from overinvestment rather than a lack of demand.

Texas may be in trouble. $778 million in apartment loans are scheduled for foreclosure auction in Texas this month. Holy crap, Mikey, what is going on?
What you're seeing is a concentration inside of the Texas Triangle. So you're talking about the submarkets of Dallas, Houston, San Antonio, and then obviously Austin.
So these are, at least over the last 6 years, the hot markets
These are the markets that, yeah, in 2020, 2021, everybody was wanting to put money into these markets.
This happens in every market cycle, including the stock market. When everything is hot, everyone dives in. A bunch of people overpurchased in Dallas, in Florida, in the Carolinas, Arizona, everywhere that is really popular and everyone's rushing to. People think, oh, this is the new hot thing. We're going to overinvest. You buy low, you sell high. What this means, it is a buying opportunity right now in Texas. If you're a seller, you might be in a little bit of pain. If you bought in 2020 and you're trying to refinance, that's going to be really rough. If you are getting in right now or you're scaling your portfolio, scale through the downturns. Texas is having a rougher time right now, but it's not because people aren't moving in. It's certainly not because businesses aren't coming here. We're getting businesses moving here left and right. People simply overbought when it was really, really hot. They overbuilt. We are entering the cycle that you want to buy through.