Should You Buy Real Estate in Dallas/Fort Worth in 2026?
Dallas/Fort Worth is facing a huge market adjustment and if you can figure out what’s going on with it you can possibly save thousands of dollars or make a great investment.
The Numbers Explain What’s Going On Now
There was some good news regarding the DFW area recently. According to the Texas Real Estate Research Center, the median value of homes sold in the DFW area decreased 2.26 percent YOY (Year Over Year) in August 2025 from $394,999 down to $387,599.
Zillow forecasts another 2-3% decrease in home values in the DFW area by Summer 2026 which would bring home values back down to roughly $375,000.
However, the number of active listings in the DFW area has increased dramatically, rising 22.44% from last year.
The DFW area ranked #4 in terms of having the highest number of new inventory in comparison to other large metro areas in the country. With an abundance of options available, many people buying homes no longer feel they must enter into bidding wars.
Many homes also continue to sit longer. In fact, the median days to sell in the DFW area rose to 89 days, a rise of 8.54% compared to the same period last year. This will give you ample time to think, negotiate, and avoid making impulsive decisions when purchasing a home.
Why Dallas/Fort Worth Still Represents an Attractive Market Opportunity
While there is much being said about how the housing market has cooled off in the DFW area, there are still many reasons why professionals are optimistic about the future of the DFW area.
The DFW area has been named as the #1 commercial and home building opportunity in 2026, marking the second consecutive year that the DFW area has earned this designation as per surveys conducted among real estate professionals.
The fundamental conditions surrounding the DFW area are strong. In August 2025, the DFW area added approximately 27,300 new jobs compared to the same period last year.
Additionally, companies continue to relocate to the DFW area due to its low cost of living and pro-business policies. Specifically, since 2018, 100 company headquarters have relocated to the DFW area.
Generation Z continues to migrate to Texas in large numbers, and projections indicate that GenZ will represent nearly one-third of the US workforce by 2030. Therefore, consistent housing demand in the DFW area will exist for many years to come.
Location Is Everything
All of the DFW neighborhoods are not created equally. The data clearly indicates winning and losing neighborhoods.
Median price of single-family homes fell 2.42% to $390,315, but sales volume increased 2.61%. These homes are selling, it’s just at lower prices.
Condominiums are currently struggling. Sales of condominiums decreased 20.22% with a median sale price decrease of 8.22% to $229,000. The average length of time a condominium sits on the market is now 102 days. If you’re considering purchasing a condominium, you have a tremendous amount of negotiating power.
Northern Suburbs—Celina, Prosper, Fate—are experiencing a surplus of homes due to the rapid growth of these areas.
Although, the majority of single family homes in the starter and mid-tier categories experienced a decline in value greater than 3%, the luxury category gained 3.5%. The take away is affluent buyers tend to be less impacted by the current state of the housing market.
The Mortgage Reality Check
Do not expect 3% interest rates to return anytime soon. Predictions are that interest rates will remain steady at around 6% through 2026. Lawrence Yun, Chief Economist of the National Association of Realtors, estimates that mortgage rates will be 6.4% in the second half of 2025 and then fall to 6.1% in 2026.
That is your reality. The housing market is adjusting to the higher mortgage rates and waiting forever will allow others to build equity in their homes.
Should You Actually Buy Real Estate in Dallas?
As a First-Time Buyer this is without a doubt the best opportunity you’ve had to purchase a home in recent history. Inventory is plentiful and you’ll have the ability to negotiate repairs and closing costs.
As long as you intend to reside in the property for 5+ years, the short-term changes in home values become irrelevant.
As An Investor Focus on cash flow vs. appreciation. Compared to the national average, the DFW area has a high percentage of renters.
Focusing on single-family homes located in areas with a high concentration of employment opportunities will provide the most favorable cash-flow returns.
Avoid speculation. The housing market in the DFW area is no longer a quick flip market. Investing in this market requires patience and a well-thought-out strategy.
The Price Point Breakdown
In addition to a general analysis of the market, the homes in the DFW area below $250,000 demonstrated surprisingly limited price decreases.
Homes in excess of $500,000 were corrected downward and had significantly larger increases in inventory.
Homebuyers with a smaller budget may find more stability in the lower-priced homes. Homebuyers who are interested in luxury homes have significant negotiating power.
The Bottom Line
The DFW area is not collapsing—it is simply correcting itself. All of the underlying factors driving the success of the DFW area (employment opportunities, growing population and business-friendly policies) are continuing to grow stronger. The easy money is over.
The Dallas area job growth rate of 6.5% is far greater than the national job growth rate of 1.7%. These jobs require housing. The demand for housing in the DFW area remains, the frenzied nature of the market does not.
If you are a Strategic Buyer set Reasonable Expectations. Buyers in the DFW area have not seen a better opportunity to enter the market in years. There are more options, more time, and more negotiating power than ever before. Simply research the individual neighborhoods, recognize that home prices may adjust downward a bit before becoming stabilized, and invest in the fundamentals—not hype.
The question is not whether the DFW area represents a strong long-term housing market. It does. The question is whether you are prepared to buy with a strategic mindset in a transition year. If so, this may be your opportunity.
Sources:
Cornett, Brandon. "Dallas Real Estate Market Forecast for 2026." DFW Housing Weekly, 26 July 2025, dfwhousingweekly.substack.com/p/dallas-real-estate-market-forecast.
Santarelli, Marco. "Dallas Housing Market: Prices, Trends, Forecast 2025-2026." Norada Real Estate Investments, 7 Oct. 2025, www.noradarealestate.com/blog/dallas-real-estate-market/.
Texas Real Estate Research Center. "Housing Activity Report: Dallas-Fort Worth-Arlington MSA." Texas A&M University, Aug. 2025, trerc.tamu.edu/data/housing-reports/.
Read more:
Should You Buy Chicago Real Estate in 2026?