Next year, Dallas-Fort Worth is expected to become the hottest real estate market in the country for investment and development.
The annual forecast from PriceWaterhouseCoopers and the Urban Land Institute named D-FW the best place to buy, build and finance real estate in the coming year.
Report, New trends in real estate, collected input from more than 2,000 industry experts and their insights were used to provide insight into real estate investing, development trends and other real estate issues across the country.
North Texas improved from its third-place ranking in the 2024 class. D-FW has been ranked in the top 10 for the last six years. D-FW also took first place in 2019.
D-FW earned its ranking as a market to watch thanks to its “enviable” recovery from the pandemic, its size and continued demographic growth, according to the report.
The region’s overall employment rate has grown 11.2% since February 2020, the fourth-fastest growth rate among metropolitan areas in the country. D-FW is second only to its Sunbelt peers in Raleigh, North Carolina; Charleston, South Carolina; and Austin.
The report also highlights the economic diversity of D-FW. North Texas is home to 23 Fortune 500 companies, the fourth largest concentration in the country.
The area also has some of the best annual property returns over five and 10 years: 7.9% and 8.8%, respectively. It is the only Texas metro area to receive this honor, the report said.
Despite the growth, D-FW has remained relatively affordable.
Moody’s Analytics estimates that the relative cost of doing business in Dallas is 102% and the cost of living is 113% of the national average.
Median home prices in Dallas rose nearly 38% from the first quarter of 2020 to $382,000. That’s roughly in line with the national median sales price of just under $400,000, according to real estate company Redfin.
These home prices are approximately four to five times higher than the median household income in North Texas. According to the report, the region is “not entirely affordable in absolute terms, but is less unaffordable than most other major housing markets.”
The region’s affordability, growth and economic diversity should continue to attract new residents and businesses. However, the report warns that heat stress and fires could challenge the region in the coming years.
“Dallas continues to attract new businesses and residents who benefit from our attractive economic climate, new, highly skilled workforce and world-class developments. We are proud to be recognized as a market leader and know our momentum will support the Urban Land Institute’s work to improve housing affordability and workforce development solutions created by our growing environment,” said Tamela Thornton, executive director of ULI Dallas-Ft. -Worth. in the statement.
Nationally, the forecast for 2025 is stronger than last year, but industry leaders remain cautious. Experts say the country is on the verge of the next upswing in the real estate cycle. The general consensus is that the recovery of the commercial real estate market will be slow and gradual.
Data centers dominate the real estate market, and the fast-growing Sunbelt markets may be oversupplied in the construction and rental markets.
Top 10 report:
- Dallas-Fort Worth
- Miami
- Houston
- Tampa – St. Petersburg
- Nashville
- Orlando
- Atlanta
- Boston
- Salt Lake City
- Phoenix
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