This new feature only works on MTEXT but that should be fine for most people.
With AutoCAD 2016 Mtext can now have a text frame that dynamically sizes itself as you edit the text.
Simply select the MTEXT
In the Properties palette, under the “Text” area, notice the new “Text frame” option and change it from “No” to “Yes”
Note: the size of the text frame is determined by the size of the background mask offset factor. Which brings another great possibility – combining the new TEXT FRAME option with a background mask.