Dallas has long been one of the hottest housing markets in the country.
It’s a city where population growth, job creation, and migration all collide to create a unique real estate environment.
But today’s Dallas housing market isn’t the same as it was just a few years ago.
With rising mortgage rates, changes in buyer demand, and national economic uncertainty, anyone looking to buy a home in Dallas in 2025 needs to pay attention to the numbers.
This article unpacks the most recent Dallas housing market trends, compares them with national figures, and provides practical advice for navigating this competitive space.
Current Market Snapshot
Prices
According to the NTREIS Monthly MLS Summary Report (May 2025), the median sale price for Dallas-area homes was $407,500, up slightly from $401,000 in May 2024.
This modest increase suggests that while Dallas remains strong, prices aren’t spiking at the breakneck pace of prior years.
Interestingly, the Texas Real Estate Research Center noted that Dallas prices actually dipped year-over-year in March and April of 2025, down 0.4% YoY.
This points to seasonal fluctuations and shifting buyer behaviors.
Sales
The NTREIS report shows 5,434 residential closed sales in May 2025.
On a statewide level, Texas saw 29,870 closed sales in April 2025, down 3.4% YoY. Clearly, sales activity has cooled compared to the post-pandemic boom.
Inventory
Dallas currently has 3.2 months of housing inventory available.
For context, a balanced market is considered six months.
This means Dallas still leans toward being a seller’s market, though buyers now have a bit more breathing room compared to the frenzied conditions of 2021–2022.
Supply and Demand Forces
Supply Pressures
The TRERC report highlighted that Texas housing inventory is now at a 14-year high, surpassing levels last seen in 2011.
For buyers, this means more options. For sellers, it signals increased competition.
Dallas County data further reveals that the mix of sales by price tier is widening (Dallas County Housing Activity Data).
Homes in the $300K–$500K range continue to dominate, but luxury sales above $1 million are holding steady, showing demand across income brackets.
Demand Influences
Why do people keep moving to Dallas? Job opportunities are a major factor.
The city has become a magnet for corporations relocating their headquarters and expanding their workforces.
Remote work has also given people more flexibility, allowing new arrivals to seek affordable neighborhoods within commuting distance.
The balance between higher supply and steady demand is keeping Dallas from the kind of sharp price corrections seen in other metro areas.
Migration Patterns
Dallas continues to attract newcomers from across the country.
A combination of job growth, no state income tax, and relative affordability compared to coastal metros drives inbound migration.
California and New York transplants remain a strong force in Dallas homebuying activity.
This sustained migration has softened what might otherwise have been a sharper housing slowdown.
However, as affordability challenges mount, we may see migration shift toward suburban and exurban areas of North Texas.
Affordability Challenges
The Dallas Fed points out that elevated mortgage rates and sticky real estate prices have made affordability more challenging.
Inflation-adjusted home value prices remain historically high.
That means even with slightly slower growth, many households still find it difficult to enter the market.
To put it simply: wages haven’t kept up with housing costs.
For first-time buyers especially, this creates a hurdle. Affordability is now the key barrier, more so than supply.
Dallas vs. National Trends
According to the Federal Housing Finance Agency (FHFA), U.S. home prices increased 2.9% YoY from Q2 2024 to Q2 2025. But prices were essentially flat from Q1 to Q2 of this year.
By comparison, Dallas has seen more moderation.
With slight price declines earlier in 2025 and minimal annual growth, the metro isn’t keeping pace with national appreciation.
However, that’s not necessarily a bad thing—it may make Dallas more sustainable long term.
In short:
- National market: modest price growth, slowing momentum.
- Dallas market: slower appreciation, slight declines in some months, healthier balance overall.
What’s Driving Growth?
Several factors continue to support Dallas real estate activity, even in a tougher environment:
Job Creation
Major employers in finance, healthcare, and technology continue to expand in the region.
Dallas-Fort Worth remains one of the strongest job markets in the U.S., which fuels housing demand.
Corporate Relocations
Companies moving to Texas have made headlines for years.
The influx of high-paying jobs boosts housing demand across a wide range of price tiers.
Remote Work Flexibility
Remote work lets buyers expand their home search.
People who no longer commute daily can consider neighborhoods further out, where homes are more affordable.
Demographics
Millennials entering peak homebuying years represent a significant share of demand in Dallas.
Many are drawn to Dallas’s relative affordability compared to other large U.S. metros.
Tips for Homebuyers in Dallas
If you’re considering buying a next home in Dallas right now, you’ll need more than just a quick scan of Zillow. Here are practical tips based on today’s data:
Expand Your Search Radius
Look at suburban and exurban areas where inventory is rising.
Cities like McKinney, Frisco, and Allen offer strong schools and communities with slightly more affordable pricing.
Get Pre-Approved Early
With mortgage rates still elevated, knowing what you can afford before you shop is key.
It also signals to sellers that you’re a serious buyer.
Watch Inventory Trends
Keep tabs on months of inventory.
If inventory continues to climb, buyers may have more negotiating power later in 2025.
Consider Total Monthly Costs
Don’t just focus on home price—look at property taxes, insurance, and HOA fees.
Dallas County has relatively high property taxes, which can significantly impact affordability.
Negotiate Strategically
Sellers are facing more competition.
Don’t be afraid to ask for concessions, such as covering closing costs or making repairs before closing.
Time Your Move
Historically, late summer and fall see softer demand than spring.
If you have flexibility, waiting could give you better options.
Conclusion
The Dallas housing market in 2025 is neither booming nor collapsing.
Instead, it’s balancing. Prices are stabilizing, inventory is growing, and demand remains steady thanks to jobs and migration.
Compared to national affordable housing trends, Dallas looks slightly cooler, but that may be a blessing for long-term sustainability.
For buyers, the takeaway is clear: stay informed, watch inventory levels, and be prepared to negotiate.
Dallas still offers opportunities—it just requires a more strategic approach.
With thoughtful planning, you can find the right home maintenance in one of America’s most dynamic metros.
