
The Dallas-Fort Worth-Arlington real estate market is often compared to Texas weather: generally steady and predictable, except when it isn't. The coronavirus pandemic, for instance, caused a dramatic surge in home prices during 2020 and 2021, making homeownership in Dallas and its surrounding suburbs significantly more expensive. In 2024, however, the housing market in the Dallas area has experienced a slight decline in property values. According to Todd Luong, a real estate agent with RE/MAX DFW Associates, this is not necessarily negative. The market now has more available inventory and a reduced median sales price, making it more accessible for potential buyers.
“During 2021 and 2022, the market was extremely active,” Luong explained. “Dallas led the nation in price appreciation with annual growth rates of 20 to 30%.” However, he noted that inventory levels were insufficient during that period. Over the past year, inventory has increased by 50%, yet prices have only dropped by 1%. “This minimal price decrease despite significant inventory growth indicates how resilient and healthy the Dallas real estate market is,” Luong added.
Using data from the U.S. News Housing Market Index, we have gathered essential information about the current state of the Dallas-Fort Worth market. Here’s what you need to know about its recent past, present conditions, and outlook for 2025.
How the Dallas-Fort Worth Housing Market Changed in 2024
In 2024, the Dallas-Fort Worth housing market experienced notable changes. According to the U.S. News Housing Market Index, newly approved construction permits for single-family and multifamily homes showed slow but steady growth. In July 2024, there were 4,246 newly approved permits for single-family homes, a 20% increase from the 3,532 permits in July 2023. Throughout the year, single-family home permits rose consistently from 3,516 in January to July. Conversely, permits for multifamily homes saw a slight decline from 2,454 in January to 2,238 in July, marking an almost 8% year-over-year decrease.

The Dallas-Fort Worth-Arlington area is particularly interesting due to its rapidly growing suburbs. Some cities like Princeton have temporarily banned residential development to allow infrastructure to catch up with the rapid population growth. In September, the Princeton City Council voted for a four-month halt on new residential development permits because the city's infrastructure was being overwhelmed by rapid growth.
“Princeton is one of those towns about 45 minutes outside of downtown Dallas where housing is significantly more affordable,” Luong explained. “As a result, its population has grown exponentially. It’s definitely a seller’s market in Princeton.”
Dallas Housing Supply and Demand
The Dallas-Fort Worth-Arlington area currently has about a 3.5-month housing supply on the market, an increase of nearly a month compared to the previous year, according to the U.S. News Housing Market Index. Traditionally, a six-month supply is considered ideal for a balanced market, notes Luong. Some areas within Dallas have a four-month supply at present. Housing supply measures how long it would take to sell all existing homes on the market at the current sales pace without adding new inventory.

“It’s still below what you would see in a balanced market. It’s a seller’s market,” says Luong. “But it feels balanced because of that craziness we saw in 2021 and 2022. We’re seeing home sellers dropping their home prices and being more flexible in their terms. And we’re seeing buyers offer lower than what the prices are on the house.”
Rental vacancies in the second quarter of 2024 were at 9.3%, nearly unchanged from the previous year, according to the U.S. Census Bureau. This rate is comparable to the national vacancy rate of 6.6% for the same period, which was slightly higher than 6.3% in Q2 2023 and consistent with Q1 2024.
Mortgage applications rose by 11% from the previous week, reaching their highest level since July 2022, as reported by the Mortgage Bankers Association’s Weekly Applications Survey for the week ending September 20, 2024. This surge was driven by a significant 20% increase in refinance applications following a substantial rise in the prior week.
The unadjusted Purchase Index saw a modest increase of 0.4% compared to the previous week and was up by 2% from the same week one year ago.
Consumer sentiment improved by 3.8 points year over year to reach 68.2 out of 100 in June, based on data from the University of Michigan's Survey of Consumers. However, consumer sentiment has remained relatively stable over the past three months.
Median Home Price in Dallas-Fort Worth
The typical house price in the Dallas-Fort Worth-Arlington area is $425,000, down 1.2% year on year, according to the U.S. News Housing Index. According to Luong, that sum is enormous in comparison to where the neighborhood was a decade ago, but house values have risen dramatically in recent years.

Interest rates have a lot to do with the increase of purchasers entering the Dallas-area market. According to Luong, the Federal Reserve recently reduced borrowing rates, which has prompted purchasers to return to the real estate market in the hopes of finding their ideal house.
"That Fed cut (in September 2024) was a warm welcome to a lot of buyers," he recalls. "Many purchasers have stayed away because we've grown accustomed to seeing cheap interest rates in recent years. Once interest rates reached 5 or 6%, many buyers chose to exit the market and put their search on hold. People are reevaluating their home alternatives now that interest rates are down.
The rental market has continued to witness price hikes, with the average rent in Dallas hovering at $2,025 in September. According to Zillow, this is an average $12 increase year over year, but it is still less than the median rent in the United States, which is roughly $2,100.
Unemployment Trends in Dallas-Fort Worth
According to data from the U.S. Bureau of Labor Statistics, in August 2024, there were almost 4.29 million nonfarm jobs in the Dallas market, and the unemployment rate was a mere 4.1%. The national unemployment rate is 4.2%, which is higher than that.
U.S. Bureau of Labor Statistics data from August shows that total nonfarm payroll employment rose by 142,000, but the unemployment rate barely moved at 4.2%. Construction and healthcare had increases in employment.
Employment
Unemployment

The Bureau of Labor Statistics reports that there are 37,700 construction jobs in the Dallas-Fort Worth-Arlington region, an increase of about 1% from the previous year.
In the Dallas-area market, the number of mortgage delinquencies and foreclosures is comparatively consistent. There have been 0.1% fewer foreclosures this year, at 0.3%. Late payments have increased by 0.2% annually to 3.9%.
Builder Confidence in Dallas-Fort Worth Declines
The purpose of the National Home Builders Association and Wells Fargo Housing Market Index is to monitor the state of the country's single-family housing market. Builder confidence in the new single-family home market increased to 41 in September from 39 in August, a two-point increase. The HMI said that this ends a run of four straight months of monthly reductions. For the Dallas-area market, that figure was 43, which was a 15-year low. The American Institute of Architects' Architecture Billings Index shows that building for commercial rates are 46.30, down 2.6 year over year. The demand for architectural services and building activity is gauged monthly by the Architecture Billings Index (ABI).
In contrast to the previous month, a score above 50 denotes an increase in billings, while a score below 50 denotes a decrease. As of August, the American Institute of Architects reported that the ABI was still "sluggish" nationally, scoring 45.7. It said that businesses haven't had steady growth in over two years.
Dallas-Fort Worth Real Estate Market: Predictions
Due to a decrease in buyer interest and fewer homes being listed during the holidays, Luong predicts the Dallas-area market will see its customary slowdown throughout the fall and winter.
There is some activity since Texas's winters aren't too harsh. However, spring is unquestionably the busiest season for us, according to Luong. "On the plus side, with interest rates dropping, I've been getting calls from buyers who are ready to look again." Homes in the Dallas region are selling a little more slowly, according to him, and this trend is probably going to continue through the beginning of 2025. However, he is assuring his sellers that this is typical and they shouldn't be concerned. Homes are typically listed for 52 weeks.
It is expected that properties in the Dallas region would continue to take longer to sell far beyond 2025, according to him. It is common, he assures his sellers, so they shouldn't be concerned. Property is listed for sale for around 52 days on average.
“I keep telling my clients that having a home on the market for a few weeks is nothing wrong,” Luong said. "I've spent 40 years living in Dallas and 17 years working in real estate. It feels like Dallas has been in a bull market forever. Prices have increased annually since 2014. It's nice that things are finally stabilizing since it allows purchasers to be more laid back. They can take a breather before they make an offer.