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Dallas has taken the top spot in the Emerging Trends in Real Estate 2025 report by PwC and the Urban Land Institute, continuing its impressive streak in the top 10 for six years running.
In this article, we’ll break down the 8 biggest reasons why Dallas is shining so brightly in this report.
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 leads the nation with unstoppable population growth
Dallas/Fort Worth (DFW) is experiencing substantial population growth, ranking as the fourth-fastest-growing city in the U.S. from 2020 to 2023, with a 6.1% population increase.
This growth reflects both migration and natural demographic increases, as people move to DFW for job opportunities and a relatively affordable cost of living compared to other large metro areas.
This expanding population creates more demand for housing, retail, and services, making it a prime target for real estate investment.
Source: PwC & Urban Land Institute
We created this infographic to show how property prices in Dallas compare to other big cities in Texas. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
2) Dallas’ job growth fuels endless opportunities
Since the pandemic, DFW’s job market has bounced back quickly, with a 11.2% employment growth rate since February 2020.
This ranks fourth among large metro areas, only behind Raleigh, Charleston, and Austin. The rapid employment recovery supports DFW's appeal to potential residents and ensures that local demand for goods, services, and housing remains robust.
A resilient job market also signals economic stability and enhances investor confidence.
Source: PwC & Urban Land Institute
3) Dallas delivers top investment returns, making it an investor’s dream
DFW's real estate market has yielded impressive returns for investors, with five- and ten-year annualized returns of 7.9% and 8.8%, respectively, in the NCREIF Property Index (NPI).
These returns place Dallas in the top quartile of performance across major U.S. metros. DFW is also the only Texas metro to achieve this level of sustained return, highlighting it as an exceptional market within both the state and the national context.
This strong performance reflects a healthy balance between property appreciation and rental yields, making Dallas attractive for both residential and commercial real estate investors.
Source: PwC & Urban Land Institute
- Why Dallas' real estate market is not overvalued in 2025
4) Dallas is home to a large concentration of Fortune 500 companies
DFW has the fourth-largest concentration of Fortune 500 companies in the U.S., with 23 major corporations headquartered in the area. This includes major companies in banking, telecommunications, and logistics, among other sectors.
The presence of these corporations not only boosts employment but also promotes infrastructure development, attracts supporting industries, and creates a ripple effect on local businesses. It reinforces Dallas’s reputation as a hub for corporate talent and economic activity, further attracting both workforce and businesses to the area.
Source: PwC & Urban Land Institute
This infographic we have made will show you how market values have changed during the last decade in Dallas vs other major places in Texas. Here, the percentage increase or decrease in market value will help you see long-term trends.
5) Dallas thrives with a diverse and resilient economy
DFW’s economy is diversified across multiple sectors, including banking, commerce, insurance, telecommunications, technology, energy, healthcare, and logistics.
This economic variety insulates DFW from industry-specific downturns and enhances its economic resilience.
By spreading risk across various sectors, DFW remains less vulnerable to economic shocks, making it a safer and more stable investment environment for businesses and real estate developers alike.
Source: PwC & Urban Land Institute
6) Dallas keeps housing relatively affordable compared to other major cities
Despite rising housing costs, Dallas remains relatively affordable compared to other major markets.
With a median home price of $382,000 (a 38% increase since early 2020) that aligns closely with the national average, DFW offers affordable housing options relative to many high-cost markets.
The cost of doing business and cost of living are at 102% and 113% of the national averages, respectively, which is comparatively affordable in the current real estate landscape.
Affordability is a significant factor for both individuals relocating to the area and businesses seeking a lower-cost base.
Source: PwC & Urban Land Institute
- Why Dallas' housing prices might fall in 2025
7) Dallas attracts with Texas’s no state income tax advantage
Texas does not have a state income tax, which is a major attraction for both individuals and businesses.
For residents, it increases disposable income, while for businesses, it reduces the overall tax burden, making Dallas an attractive location for expansion.
This tax advantage, paired with other cost-of-living factors, further boosts DFW’s appeal as a destination for both domestic migration and business investment.
Source: PwC & Urban Land Institute
Our team designed this infographic to show how competitive the real estate market in Dallas is vs. other major cities in Texas. It shows the percentage of sales above the list price, a key indicator of market competition.
8) Dallas’s growth potential puts it miles ahead of other cities
The combination of affordability, economic diversity, and population growth means Dallas is likely to continue attracting new residents and businesses.
This growth potential is driven by DFW's favorable conditions for young professionals, families, and businesses looking for economic opportunity and quality of life.
Real estate investors are especially optimistic about DFW’s capacity for ongoing growth, as the market continues to show resilience and opportunity for high returns.
Source: PwC & Urban Land Institute
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So, does Dallas deserve to be the top real estate market for 2025? Absolutely!
Dallas is leading the real estate market for 2025, and it's not hard to see why.
First off, the city is experiencing unstoppable population growth, with a 6.1% increase from 2020 to 2023, making it the fourth-fastest-growing city in the U.S. This surge in population is driven by job opportunities and a relatively affordable cost of living, which in turn boosts demand for housing and services.
Moreover, Dallas's job market is thriving, with a 11.2% employment growth rate since February 2020, ranking fourth among large metro areas. This economic stability attracts more residents and investors, ensuring a robust local demand for real estate.
Investors are also drawn to Dallas for its impressive returns, with five- and ten-year annualized returns of 7.9% and 8.8%, respectively. This performance places Dallas in the top quartile of major U.S. metros, making it an investor's dream.
Additionally, the presence of 23 Fortune 500 companies in the area boosts employment and infrastructure development, further enhancing Dallas's appeal. The city's diverse economy, spanning multiple sectors, adds a layer of resilience against economic downturns.
Finally, Dallas remains relatively affordable, with a median home price of $382,000, aligning closely with the national average. Coupled with Texas' no state income tax, Dallas offers a compelling package for both individuals and businesses looking to relocate.