Dallas is a burgeoning market for real estate investing, attracting money from both domestic and international investors. In October, the vaunted PricewaterhouseCoopers and Urban Land Institute’s “Emerging Trends in Real Estate 2025” named the Dallas-Fort Worth metropolitan area the top U.S. market to watch in 2025.
Dallas real estate investing has exploded thanks to significant population growth, a strong economy, a favorable business climate and robust rental demand. Breaking into the dynamic market will require you to do your homework, so it’s important to understand what’s happening now and how the market is trending.
This look at Dallas real estate investing can help you decide whether various opportunities will fit your investment strategies and goals.
Current Dallas Market Overview in 2025
- Median home price: $467,500 as of April 2025, a 5.7% increase year over year
- Average home value: $318,689, down 3.2% over the past year
- Median listing price: $471,371 in May 2025, up 4.1% year over year
- Inventory: 6,600 active listings as of May 31, 2025, a 13.4% increase from April
- Median days to pending: 24 days in April
Rental Market Trends
- Average rent: $2,050 per month as of June 2025, 2.38% lower than the national average
- Median rent: Approximately $1,799 per month as of June 2025
- Year-over-year rent decrease: Approximately 1.5%, attributed to increased supply
Investment Opportunities
Whether you’re a long-term or short-term investor, the Dallas area offers investment opportunities galore. A look under the hood at Dallas real estate trends can help explain why Dallas is ranked as the top U.S. market for real estate investment.
The median price for houses in the Dallas area is in the mid-$400Ks. Based on current conditions, the Dallas housing market (2025 through 2026) is expecting appreciation of 2%–4%.
Despite rising home prices in some areas, the city remains relatively affordable. Dallas home prices and rents are slightly lower than national averages, drawing the attention of home buyers and investors alike. And over the past decade, investors have seen an average return of nearly 8%.
The Dallas-Fort Worth-Arlington metroplex offers a diverse portfolio of real estate options. You might invest in single-family homes, multi-family apartments, luxury high-rises, office spaces, retail centers or industrial properties.
Similarly, the Dallas rental market offers many up-and-coming neighborhoods, including Uptown within walking distance of downtown Dallas, Oak Lawn in the central part of town, The Cedars just south of downtown and Preston Hollow within minutes of the city center.
Meanwhile, Deep Ellum is a growing cultural haven for young professionals, the Bishop Arts District offers a small-town feel in the big city and Frisco, a quaint city north of Dallas, attracts businesses and residents looking to relocate.
Economic and Demographic Factors
The Dallas-Fort Worth metropolitan area is among the top three fastest-growing metro areas in the United States, with the metroplex adding about 178,000 residents between 2023 and 2024.
This healthy population growth is partly the result of major economic expansion as tech, financial and healthcare companies grew or relocated, and employees from expensive cities sought more affordable living in Texas.
Employment across the Dallas-Fort Worth-Arlington metroplex increased 11.2% between February 2020 and February 2025.
The metropolitan statistical area (MSA), composed of the employment centers of Dallas-Plano-Irving and Fort Worth-Arlington-Grapevine, added 53,600 non-farm jobs from February 2024 to February 2025, a 1.3% increase second only to New York for net job gains.
The economic expansion is being led by some of the country’s top corporations. The Dallas area is home to 21 separate Fortune 500 companies, including AT&T, Caterpillar, American Airlines, CBRE, D.R. Horton, Southwest Airlines and Charles Schwab.
The market has also attracted major corporate investment, including the multinational investment bank and financial services company Goldman Sachs. The company is building a $500 million campus on 11 acres in the North End neighborhood of Dallas, also known as Victory Park.
The project, which will feature retail on the ground floors of its four office buildings, is scheduled to conclude by the end of 2027 and open in 2028.
Risks and Considerations
While the Dallas market has shown remarkable resiliency, Dallas property investment isn’t without its share of risks and other considerations.
The rapid development that has accompanied the booming economy and population growth may create an oversupply of properties, potentially lowering prices but increasing competition. For long-term investors, an oversupply also could impact property appreciation.
Investors must also be aware of the evolving short-term-rental landscape. Like government officials in municipalities across the U.S., Dallas officials are grappling with how to regulate short-term rental properties. It’s critical to stay informed about local regulations that might impact your returns.
Macroeconomic factors, such as inflation and interest rates, may also influence Dallas real estate investing.
Nothing about the projections examining the remainder of 2025 and into 2026 indicates a drastic shift in inflation or mortgage rates, which may hover between 6.5% and 7%. However, uncertainty injected into the U.S. economy by the imposition or threat of tariffs appears to be a mainstay and could drag down economic growth.
Consider Adding Dallas Real Estate Investing to Your Strategy
Driven by population growth, economic expansion and a business-friendly environment, Dallas real estate investing is the new darling of domestic and international investors.
The Dallas-Fort Worth metropolitan area clinched the top spot on the Urban Land Institute’s list of real estate markets to watch in 2025. And with housing swinging toward balance or even a buyer’s market, you may find many opportunities as an investor in the Dallas-Fort Worth-Arlington metroplex.
No state income tax, low property taxes and a relatively affordable cost of living continue to spur relocations of businesses and employees. Now that you know more about real estate investing in the Dallas area, it’s up to you to decide whether Dallas real estate investing makes sense for your financial situation and investment goals.
Frequently Asked Questions
Is Dallas a good place to invest in real estate?
Dallas typically ranks among the top markets for real estate investors, grabbing the top ranking by PricewaterhouseCoopers and the Urban Land Institute of real estate markets to watch in 2025.
While you should consider competition and fluctuations in Dallas’s dynamic market, the city remains attractive to investors because of its strong economy, high demand for rentals and property appreciation.
Are home prices in Dallas dropping?
Professionals in the real estate market present a mixed bag for Dallas home prices, with some expecting a slight decline and others anticipating a slight increase throughout 2025 as the market stabilizes.
However, after nearly two years of mostly falling prices, Realtor.com reported that the cost of homes in April 2025 rose 1.4% from March, with a median listing price of $437,000; Redfin reported an increase of 5.7% year over year in April.
What is the future of Dallas real estate?
The Dallas metroplex is expected to continue being one of the most attractive residential and commercial real estate markets for home buyers and investors throughout 2025 and into 2026. This is largely due to increasing population growth, a strong job market and a relatively affordable cost of living.
