Marcus & Millichap has published two investment forecast reports for Texas cities for 2026: one for Austin and one for Dallas-Fort Worth.
Key findings of the Austin report include:
- Austin’s population expanded by 2.6% year-over-year, maintaining its position as a top in-migration market, supporting long-term storage demand fundamentals.
- Employment growth remains positive, with 13,000 jobs expected to be added in 2026, reinforcing household formation and storage utilization.
- Inventory has reached 27 million square feet, with construction accelerating and expected to expand stock by 3.2% year-over-year, led by suburban submarkets.
- Vacancy rose to its highest level since 2018 but is projected to ease to 8.9% in 2026 as demand catches up with recent supply additions.
- After two years of rent declines, asking rents are forecast to stabilize and increase slightly to $1.04 per square foot, remaining among the highest in Texas.
“Strong demographic expansion and income growth in Austin continue to support resilient demand for self-storage, even as new supply comes online,” stated Jon Danklefs, managing director investments. “Despite near-term supply pressures, Austin’s sustained population and income gains position the self-storage sector for stabilization and renewed rent growth.”
To access the Austin report, click here.
Key findings of the Dallas-Fort Worth report include:
- Robust in-migration trends, particularly into northern suburbs like Collin County and northern Tarrant County, are supporting demand for self-storage as new residents relocate and settle in the metro.
- Development activity is accelerating, with over 100,000 square feet of new supply underway and approximately 4.2 million square feet planned, though deliveries are expected to taper after 2026.
- Employment growth remains a key demand driver, with Dallas-Fort Worth projected to add 206,000 jobs in 2026, one of the strongest gains among major U.S. metros.
- Vacancy is forecast to rise to 9.2 percent, marking a new cycle high as elevated supply levels continue to outpace demand in the near term.
- Despite near-term pressure, rent trends are stabilizing, with average asking rents expected to decline modestly to $0.96 per square foot, remaining relatively resilient compared to historical norms.
“Dallas-Fort Worth continues to demonstrate strong underlying demand drivers, with sustained population inflows and employment growth supporting the self-storage sector’s long-term outlook,” stated Mark McCoy, senior managing director and DFW market leader. “While near-term supply pressures are influencing vacancy and rent levels, the metro’s strong economic and demographic fundamentals position the self-storage sector for stabilization and future growth.”
To access the Dallas-Fort Worth report, click here.