2025 is a good time to buy in Dallas, here are 10 reasons why

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Some of you may have noticed that the Dallas housing market is currently in a 'neutral mode,' indicating limited growth potential. Affordability is also becoming a significant issue in the area.

However, we have identified 10 strong indicators suggesting that investing in Dallas real estate in 2025 remains a promising opportunity.

This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.

1) Dallas has been named the #1 U.S. market for real estate in 2025

Dallas-Fort Worth has been recognized as the top U.S. market for real estate investment and development in 2025, according to PricewaterhouseCoopers and the Urban Land Institute. DFW is notably the only Texas market to consistently rank in the top 10 for the past six years, and will return to the #1 spot in 2025 for the first time since 2019.

Such an endorsement is a strong indicator of a vibrant, attractive market for both domestic and international investors. This recognition isn’t just a badge of honor; it signals a well-performing market with robust fundamentals, including strong employment, population growth, and relative affordability.

For investors, this translates to confidence that Dallas is a competitive and profitable market poised for continued growth and stability.

Sources: PwC, Texas Standard, DMagazine, NBCDFW, Credaily

2) Dallas is currently a premium spot for data centers

Maybe you did not know that but Dallas data center market is highly competitive, with only a 1.4% vacancy rate, placing it at #4 nationwide (some sources say as high as #2).

This demand means that businesses see Dallas as a strategic location, leading to significant investments—like Google’s $330 million for a new campus in Texas.

As tech companies expand, they create jobs and draw in a workforce, which boosts the demand for housing.

This growth in business activity leads to a stronger local economy and creates steady demand for residential real estate, making Dallas a promising place for long-term residential investment.

Sources: Data Center Dynamics, New York Post

3) Dallas extremely low foreclosure rate signals strong economic stability

The foreclosure data from Dallas highlights why the city is a promising real estate investment opportunity for 2025.

Out of 314,570 residential properties, only 73 had foreclosure filings in May 2024, with just 8 actually repossessed by lenders. This results in a very low foreclosure rate—about 0.023%—which signals two important things for investors.

First, it shows market stability: Dallas homeowners are keeping up with mortgage payments, indicating strong employment and steady income levels across the city. Second, it suggests investment safety: with so few distressed properties, there's less risk of declining neighborhood values that high foreclosure rates can bring.

This combination of economic strength and a stable housing market makes Dallas a solid bet for real estate investors looking toward 2025.

Source: Attomdata

4) Dallas home prices are still pretty affordable compared to other big cities

Dallas home values, while appreciating, remain more affordable compared to other major U.S. metro areas, averaging $315,154 in Dallas proper and around $378,841 in the broader metro area.

For investors, this means Dallas has significant potential for appreciation without the immediate barriers seen in pricier metros. As demand continues to rise and supply remains tight, these comparatively low prices are likely to trend upward, providing opportunities for investors to see returns as values increase.

Additionally, the relatively accessible home prices make Dallas appealing to relocating buyers, especially those from more expensive cities who are drawn by Dallas’s affordability and quality of life.

This makes it an attractive market for investors looking to capitalize on increasing home values while still accessing a competitive entry point

Sources: Zillow, US Real Estate News

5) With more and more people moving to Dallas, the demand for homes is only going up

The Dallas-Fort Worth metroplex is booming in terms of population, now home to over 8 million residents. This growth is not slowing down anytime soon, with projections suggesting the metro area could grow to nearly 11 million residents by 2040. Actually, Texas is projected to gain between 3-5 million people by 2036.

Such a large and rapidly expanding population directly contributes to sustained demand for housing, driving up both home values and rental prices.

Dallas’s role as a significant hub for Fortune 500 companies attracts people nationwide, adding a steady influx of new residents seeking homes. This constant demand for housing makes the market resilient, even in economic downturns, and provides stability and growth potential for investors.

Population growth in a city like Dallas doesn’t just create a need for more housing; it establishes a dynamic environment where property values are more likely to appreciate over time.

Sources: Texas Standard, NBCDFW, DMagazine, Texas 2036

6) Dallas’ booming job market means more people need housing, making it a compelling case for real estate investment

Investing in Dallas residential real estate in 2025 is particularly promising due to the impressive employment growth in the area.

With a robust 11.2% increase in total employment since early 2020, Dallas has shown one of the fastest recoveries and expansions in the nation.

This is more than just a statistic; it reflects a healthy, expanding job market that attracts professionals and families alike, all of whom need housing. A strong job market boosts purchasing power, as employed residents are more likely to afford higher home prices or premium rents. Additionally, businesses often establish offices in areas with growing workforces, further fueling local demand for housing.

The combination of job growth and increased housing demand supports property value appreciation, making it an ideal time for investors to buy in before prices potentially rise further.

Sources: DallasFed, Texas Standard

7) There aren’t enough homes to meet demand in Dallas, which helps keep property prices steady and promising for investors

Despite new listings, Dallas’s housing supply is still insufficient to meet demand. Currently, there are 5,741 active listings, with a recent 13.5% monthly increase.

However, this uptick has not been enough to alleviate the demand from the area’s growing population and high employment rates. This persistent supply shortage is good news for investors, as limited supply typically supports price stability and gradual appreciation, especially in areas with high demand like Dallas.

Moreover, the shortage underscores the stability of the market, as properties tend to hold or increase their value in such conditions, allowing investors to benefit from steady or even accelerated appreciation in the coming years.

Sources: The Luxury Playbook, Texas Real Estate Research Center

8) Dallas’ steady housing market and rising rental prices make it a great place to invest for both resale and rental income

Although the median home price in Dallas-Fort Worth saw a minor decline of 1.2% year-over-year, the resilience of the market remains strong, with demand shifting to rentals and other housing needs.

Average rent prices have continued to climb, reflecting ongoing housing demand, especially as buyers hold off due to affordability concerns.

For investors, this trend highlights the potential in both resale and rental markets, as people still need housing, and rising rental rates offer a viable revenue stream.

The slight cooling in purchase prices combined with the rise in rental demand creates a balanced opportunity for both appreciation and steady cash flow, making it an advantageous time to invest in Dallas residential real estate.

Source: US News Real Estate

9) Investors seem to prefer Dallas over Houston and other Texas cities

As mentioned above, recent reports indicate that Dallas-Fort Worth (DFW) is projected to be the top market for real estate investment and development in 2025.

This ranking places DFW ahead of other Texas cities like Houston, which secured the No. 3 spot.

These findings suggest a preference among investors for the Dallas area over other Texas cities for residential real estate investment in 2025.

As we saw, there are a lot of reasons why. One of them is that Dallas area offers impressive five- and ten-year real estate returns at nearly 8% annually, outperforming other Texas metro areas.

Sources: New York Post, Yahoo Finance

10) There is no state income tax in Texas

One of the biggest draws to Texas—and Dallas in particular—is the state’s no-income-tax policy. This isn’t just a perk for residents; it’s a major incentive for businesses too.

For residents, it means more take-home pay, which drives up disposable income. For businesses, the reduced tax burden makes expanding in Dallas a financially smart move.

This tax advantage, combined with Dallas' lower cost of living, makes the DFW area a top choice for domestic migration and business investment, further fueling real estate demand.

Source: PwC & Urban Land Institute

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So, is it a good time to invest in Dallas real estate in 2025? Absolutely!