Texas emerged as a top market for apartment investment in 2020 and 2021 as investors changed their appetite for Sunbelt metros. Dallas-Fort Worth (DFW) and Austin have been the target for institutional players and out-of-state investors. Austin’s large presence of 20-34 year-olds, paired with its strong economic performance, has made it one of the most compelling Sunbelt markets in the country. For three years in a row, over $2 billion in multifamily sales has been achieved (Note, Texas is a non-disclosure state and this figure is based only on the data provided). With record-setting demand and rent growth in Dallas-Fort Worth, the average pricing for multifamily assets has appreciated 15 percent in the last year. In Dallas-Fort Worth, Fannie / Freddie Small Balance Loans (SBL) traditionally dominated the multifamily market offering the most competitive long-term debt. There is now more competition from conventional banks, especially program/platform multifamily banks who have found great success in West Coast markets and are looking to expand into Texas and other strong Southern markets. Now is the time to secure long-term financing. The start of this year alone has brought an average ~25 bps on the ten-year US Treasury. While the Federal Reserve may attempt to reduce movement in Q1 2022 and Q2 2022, there is major pressure from investors and bond markets to steepen the yield curve. Owners planning to hold their property for the next seven to ten years need to make significant strides to lock in low before rates rise.