2023 Housing Market Overview
Dallas Real Estate Market 2023
Dallas Real Estate Market Overview
Metro Population: 8 M
Median Household Income:$65,000
Unemployment Rate:3.3%%
Median Home Price*:$378,000
Median Monthly Rent*:$1,770
Dallas Housing Market Trends
Dallas Real Estate Market Trends & Statistics 2022-2023
The Dallas-Fort Worth metroplex has had a flurry of economic development wins in the past decade. Over time, DFW’s economy has diversified to resemble that of the broader U.S., with strong sectors including manufacturing, transportation and logistics, construction, professional services and health care. Despite this diversification, Dallas remains affordable compared to other major U.S. markets. The following section explores the top factors that contribute to Dallas’ status as a strong real estate market, including affordability, job growth, and population growth. Dive into the housing market, population, and employment trends in the tabs above.Data Sources:
- https://www.zillow.com/
- https://factfinder.census.gov/
- https://www.deptofnumbers.com/
- RealWealth Property Team Data
Median Home Values Trends & Statistics 2022
Median Monthly Rent Statistics 2022
Median Home Value Appreciation Rate (Last 11 Years)
Median Monthly Rent Appreciation rate (Last 11 Years)
As of the July 2021 census, the population in Dallas is 7,759,615. If the trend continues, the population in Dallas will be 8,066,404 by 2023. Between July 2010 and July 2021, the population of Dallas grew from 6,392,065 to 7,759,615, which is an annual growth rate of 1.96% per year and total growth of more than 21%. This is 193% above the national population growth of 7.29% over the same 11 year period.
Dallas has seen a lot of growth in its job market over the past year. The Department of Numbers reports that Dallas added 303,300 jobs from May 2021 to May 2022—a whopping 7.99% increase in the number of jobs in Dallas over the course of the year. That’s over 108% higher than the national average of 3.84%.
Reports from the U.S. Bureau of Labor Statistics indicate that over the past year, job growth has been fastest in the leisure and hospitality industry (up 17%), followed by trade, transportation and utilities (up 6%).
Hot real estate market
In the past seven years, real estate prices have increased 10.64% per year on average in Dallas. This high home appreciation rate is due to low housing supply relative to demand. According to the MetroTex association of Realtors, inventory increased by 11.2% in July 2022. The current housing supply in Dallas is 1.8 months. The market remains competitive because demand outpaces supply.Thriving job market
In the wake of the pandemic, Dallas saw some major job losses. However, its economy has recovered quickly, with a 7.99% increase in jobs between May 2021 and May 2022. This is nearly triple the national average growth rate for jobs during that time period. The leisure and hospitality sector added 61,400 jobs while the financial services sector added 27,800. Professional and business services gained 73,800 jobs in the DFW (Dallas/Fort Worth). The Department of Numbers reports that Dallas added 303,300 new jobs between May 2021 and May 2022. The city of Dallas is home to 22 Fortune 500 companies and 45 Fortune 1000 companies, including Exxon Mobil, Texas Instruments, AT&T, Core-Mark and DR Horton.Fast and consistent population growth
The population of Dallas has grown by an average of 193.48% more than the 0.71% average annual rate at which U.S. cities grew over the last 11 years. This growth is due in part to the large amounts of investment coming into the city, and the high number of companies that have relocated or expanded operations here—including Exxon Mobil, AT&T, and Apple. The average household income in Dallas is $86,393 and the Dallas Metro has seen the largest increase in payroll growth since 2008, which also contributes to its economic growth. Low costs and highly skilled labor keep the region on its growth curve, as companies in various sectors relocate or expand operations here.High construction activity – stable rent price appreciation
Construction activity in Dallas is booming, with residential and commercial developments popping up all over the city. The multifamily market in particular is strong and tens of thousands of new units are added yearly. There is a lot of undeveloped land available in Dallas, Texas, which makes it an appealing city for real estate investors and developers. Rent price appreciation in Dallas is much slower than home price appreciation. This can be attributed to the fact that there are more people moving into the city than leaving it and there are many apartments available at affordable prices.High price to rent ratio as more people rent than buy homes
The price to rent ratio in Dallas is 0.47, but in the neighborhoods where RealWealth members invest it’s an average 0.79% The rate of home ownership in Dallas is low at 41.3%. One reason for this is that renting is more affordable than homeownership in Dallas. The other is the abundance of millennials in Dallas who prefer to rent rather than buy homes.Has some of the safest neighborhoods in Texas
In a recent study from personal finance website SmartAsset, 3 of Dallas-Fort Worth’s largest cities were ranked among the safest nationwide. In fact, Frisco was named the safest city in the United States, according to the study. McKinney ranked second, moving up from third place last year; Plano moved down to nine from fifth place last year. However, Dallas has some neighborhoods that are not so pleasant. Cedar Crest, Wolf Creek and Cockrell Hill are three areas of the city that have high rates of violence and property crime.Newsworthy building developments and projects in Dallas
The Hendricks, in Cedars Submarket
The Hendricks is a $57.8 million multifamily development that will be constructed in Cedars Submarket near Dallas, Texas. The building will be five stories tall, with 285 Class A apartments. The Hendricks will have 64 studios, 177 one-bedroom and 44 two-bedroom apartments. Community amenities include pool & spa, rooftop deck, fitness/yoga studio, golf simulator and secured access. Construction of The Hendricks is scheduled to begin in the third quarter of 2022.Dallas Towers in The Arts District
In late 2021, Atlanta-based real estate development firm Portman Holdings purchased most of a downtown block at Ross Avenue and Routh Street in Dallas. This block was located in the Arts District, just across from the Nasher Sculpture Center. In 2022, they began building the Dallas Towers on this site. The proposed high-rise buildings would be located between Ross and San Jacinto Street. The development will be known as 2500 Ross, likely because its address is 2500 Ross Avenue. The development will include three buildings: an office tower, luxury residential building, and retail center.The Harold Simmons Park
The Harold Simmons Park is the first of several parks planned along the Trinity River. It will be surrounded by two impressive bridges that cross the river—the Margaret Hunt Hill Bridge and the Ronald Kirk Bridge.Wells Fargo’s regional office campus
The banking giant Wells Fargo has big plans for the corner of West Las Colinas Boulevard and Promenade Parkway, where it’s building a two-building 22-acre office complex stretching along the north shore of Lake Carolyn. The Irving City Council threw its weight behind Wells Fargo’s plan to build a huge regional office campus with $30 million worth of tax incentives. The lakeside business center is expected to be completed by 2026 and will house 4,000 Wells Fargo employees.Klyde Warren Park
Klyde Warren Park is a 5.2 acres deck space above Woodall Rodgers Freeway in downtown Dallas. The park provides a free space for the public to engage in various cultural activities, including yoga classes, musical concerts, and film screenings. Klyde Warren Park is planning to build a new pavilion and additional public park space over Woodall Rodgers Freeway, just west of St. Paul Street. The $76 million project will add 1.7 acres to the Park. The Park is also soon to become home to the tallest interactive fountain in the world!Major Employers in Dallas
Dallas Housing Market News
- "Why Dallas housing prices will keep rising" - Dmagazine
- "The biggest commercial property market in the US" - TheRealDeal
- "Institutional buyers and hedge funds bought 43% of homes sold in Dallas County in 2021" - The Center Square
- "Ranks fifth in the US for rental home construction" - Yardi Matrix
- "Dallas-Fort Worth adding new jobs at triple its pre-pandemic pace" - Bizjournals
- "#1 Best City to Buy Housing" - Forbes
- "#3 in Fastest Growing US Cities" - Forbes
- "#4 Best City for Families" - Parenting
- "#5 Best City for Jobs" - Forbes
- "Massive Growth in Dallas-Fort Worth" - Culture Map
- "Growth in Multi-Family Market" - Forbes
- "#10 Best Place for Business and Careers" - Forbes
- "#15 Best Place to Live" - U.S. News
- "Texas #4 in Best States for Growth" - U.S. News
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