Dallas-Fort Worth Housing Market Forecast for 2025 and Early 2026

Editor’s note: This housing market forecast for the DFW metro area was updated in January 2025 to provide you with the latest data and insights.

• Home prices in the Dallas-Fort Worth area dipped slightly during 2024.
• But forecasts suggest they’ll rise modestly through 2025 and into 2026.
• The DFW metroplex has a long history of gradual home-price appreciation.
• This makes it a good investment for buyers who plan to stay put a while.
• Sign up for DFW Housing Weekly to keep up with this market.

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Dallas Home Prices Over the Past 8 Years

The graph below shows the median home price for the Dallas-Fort Worth metro area over the past eight years or so. It’s based on data provided by Zillow as of January 2025.

The above graph shows the median home value for the Dallas-area housing market based on Zillow’s data, with a forecast stretching into 2025. The explanatory notes were created by our own analysts.

Home prices across the Dallas-Fort Worth metro area have been mostly flat over the past year, with slight declines reported in some cities. But they’re expected to start rising again in 2025.

Message to home buyers: If you’re in it for the long haul, these short-term (and mild) price declines or plateaus are nothing to worry about. The Dallas housing market has strong fundamentals and will likely return to a pattern of slow-but-steady price growth over the coming years.

A Less Stressful Real Estate Market for Buyers

As mentioned, home prices within the Dallas-area real estate market have changed little over the past year and are expected to remain flat over the coming months.

This is good news for DFW home buyers, because it removes some of the urgency buyers experienced over the past few years. Buyers won’t feel the same kind of pressure as those who purchased a home two years ago, when prices were skyrocketing.

Recent reports and forecasts also show that the Dallas real estate market is moving at a slower pace these days, compared to the home-buying frenzy of previous years.

Overall, home buyers who enter the market during the remainder of this year or the first half of 2025 could have a more relaxed house-hunting experience.

Do your research: The DFW metro area contains dozens of cities and communities, and housing market dynamics can vary from one to the next. We report on the Dallas-Fort Worth metroplex as a whole. But home buyers should research their local markets before making any decisions.

More Sellers Are Slashing Their Prices

Here’s another market trend that should please local home buyers.

Data provided by Redfin and other sources showed that roughly 30% of homes listed for sale in the DFW area last month had a price reduction. The percentage of price cuts has increased since last year.

This trend tells us two things:

• Sellers have become more flexible when pricing their homes.
• Buyers have a bit more negotiating leverage these days.

In a real estate context, a price reduction occurs when a homeowner comes onto the market at one price and later reduces the asking price. These cuts are typically caused by a lack of offers from buyers, a common occurrence in a sluggish real estate market.

Over the past few months, the Dallas-area housing market had one of the highest price reduction rates among the nation’s 50 largest metropolitan areas. And the overall percentage of cuts has increased over the past year.

Forecasts for 2025 suggest that the DFW housing market could offer the most “buyer-friendly” conditions we’ve seen since before the pandemic. And the trends mentioned above give credence to such predictions.

More Properties to Choose From

Dallas-area home buyers could also have more properties to choose from in 2025, due to inventory gains that occurred over the past year or so.

According to a January 2025 housing market report from Realtor.com, the total number of active real estate listings in the DFW area rose by 31% over the previous 12 months.

At the start of this year, the DFW area had about a 3.5-month supply of homes for sale. That was up from the all-time record low of 1-month supply recorded at the start of 2022. So clearly the supply situation has improved over the past two years.

These trends reinforce some of the predictions stated earlier, regarding a more buyer-friendly real estate market in Dallas.

Overall Prediction for the DFW Housing Market

Overall, the 2025 forecast for the Dallas-Fort Worth housing scene remains favorable for home buyers:

• Mortgage rates are expected to decline slightly over the coming months.
• More homes have come onto the market, giving buyers more options.
• Prices have leveled off and could remain flat for the first part of 2025.
• Buyers have more negotiating leverage, as shown by recent sales trends.

These and other trends suggest that 2025 could be a good time to buy a home in the Dallas area, with more homes to choose from and more bargaining power. And 2026 could bring more of the same.

Frequently Asked Questions From Buyers

For nearly 20 years, HBI has received housing market-related questions from home buyers nationwide. This gives us unique insight into the concerns of the average buyer.

Along those lines, here are some straight answers to frequently asked questions among DFW home buyers, investors, and agents:

What will the Dallas housing market be like in 2025?

In general, buyers can expect a “Goldilocks” kind of real estate market in 2025. Not too hot, not too cold.

House values in the Dallas area have flatlined, and that will probably continue for a while. The market is moving more slowly these days, with a median “days on market” above 50. Sellers are more inclined to negotiate and, if necessary, lower their asking prices.

Most importantly, home buyers in the Dallas area will have more time for price research and other forms of due diligence in 2025. They won’t feel as pressured to rush or to submit a hasty offer. All good things.

Will DFW home prices drop this year?

If they do, they won’t drop by much.

They probably won’t rise by much, either.

Forecasts suggest that home prices across the Dallas-Fort Worth housing market will change very little over the next 12 months. So they might flatline, dip slightly, or rise slightly. But we’re talking about small, barely measurable changes in the grand scheme of things.

Long term, DFW home values will eventually start to rise again. This real estate market is currently “recalibrating” from the unprecedented price growth that occurred during the pandemic years. After that correction, the market will likely return to a pattern of gradual price growth.

If you look at Dallas-area home prices going back decades, you’ll see they tend to rise steadily over time.

Fun fact: DFW house values actually held steady during the Great Recession of 2008, when they were plummeting in most parts of the country. That says a lot about this market.

Dallas is a resilient housing market with strong fundamentals. We might not see much price growth in 2025 (which is a good thing), or even until 2026. But we probably won’t see any major declines either.

Overall, the DFW real estate market could be considered a good investment for buyers.

Will 2025 be a good year to buy a house?

The short answer is yes. For many home buyers in the DFW area, 2025 could be an excellent time to buy a house, and for several reasons.

Refer back to the home price graph above, and you’ll notice that the Dallas-Fort Worth housing market is currently “bottoming out” after a pandemic-fueled price bubble.

This gives local home buyers an opportunity to make a purchase at the bottom of a real estate cycle, with the possibility of equity growth for the foreseeable future.

Additionally, mortgage rates are expected to decline as we move further into 2025, according to forecasts from Freddie Mac and other groups.

Lastly, we have the inventory gains mentioned earlier. Next year, Dallas-area home buyers should have more properties to choose from and therefore a greater chance for success.

Ultimately, individuals must decide for themselves when it’s the right time to buy a house. And many factors play into that. But from a market perspective, 2025 could be a good time to buy in DFW.

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About the Dallas-Fort Worth Metroplex (DFW)

The Dallas-Fort Worth Metroplex, colloquially known as “DFW,” is a sprawling metropolitan area located in North Texas. It is the fourth-largest metropolitan area in the United States and the economic and cultural center of the region.

Major Cities

The Metroplex encompasses two major urban centers and numerous suburbs and smaller cities. Here’s a breakdown:

• Dallas: The most well-known city in the Metroplex, Dallas is a hub of commerce, finance, and culture, home to numerous Fortune 500 company headquarters.
• Fort Worth: Often described as “Where the West Begins,” Fort Worth maintains a distinct cowboy and Western heritage while having its own dynamic business and cultural scene.
• Other Major Cities: Plano, Irving, Arlington, Garland, McKinney, Frisco, and Denton are among the other notable cities within DFW.

Population

As of the most recent U.S. Census, the DFW Metroplex has a population of over 7.6 million residents. It continues to be one of the fastest-growing metropolitan areas in the nation, adding hundreds of thousands of new residents each year. This brings more home buyers into the Dallas-Fort Worth housing market, boosting competition and putting upward pressure on prices.

Geography

DFW encompasses 13 counties in North Texas, covering a vast expanse of over 9,200 square miles. The landscape is primarily flat prairie with areas of gently rolling hills. Trinity River is the major waterway flowing through the Metroplex.

Economy

The Dallas-Fort Worth economy is highly diversified, providing a broad range of employment opportunities across numerous industries. Key sectors in 2025 include:

• Corporate headquarters: Major Fortune 500 companies headquartered in DFW include AT&T, ExxonMobil, American Airlines, Southwest Airlines, Texas Instruments, and more.
• Finance and banking: The region boasts a strong presence in financial services.
• Technology: DFW is sometimes called the “Silicon Prairie” due to its expanding tech sector.
• Healthcare: Numerous major hospitals and medical centers are headquartered in DFW.
• Logistics and Distribution: The Metroplex’s central location and strong transportation infrastructure make it a key hub for logistics and distribution.

Things to Know When Relocating

• Cost of Living: DFW generally has a lower cost of living than many major cities, especially when it comes to housing-related costs.
• Culture and Attractions: The region offers a wealth of cultural and entertainment options, including world-class museums, performing arts venues, professional sports teams (Dallas Cowboys, Texas Rangers, Dallas Mavericks, etc.), and popular nightlife and dining districts.
• Transportation: The region has a network of major highways, but can experience traffic congestion. DART (Dallas Area Rapid Transit) provides light rail and bus services. DFW International Airport and Dallas Love Field are major air transportation hubs.
• Climate: The Metroplex is classified as humid subtropical, meaning hot summers and generally mild winters with occasional cold spells.

Additional Resources

• Visit Dallas: https://www.visitdallas.com
• Fort Worth Convention and Visitors Bureau: https://www.fortworth.com

Disclaimers: This report contains forecasts and predictions for the Dallas-area real estate market extending through 2025 and into 2026. Such projections represent an educated “best guess” based on current housing market conditions. No one can predict future real estate trends with complete accuracy. The Home Buying Institute (HBI) makes no claims about future trends.