Dallas-Fort Worth is the No. 1 market to watch in 2026, a designation it has received for the second year in a row.
Global accounting and financial services firm PwC and the influential Urban Land Institute have just released their annual Emerging Trends in Real Estate 2026 report, ranking the top 10 markets to watch in 2026 and naming the Texas city the top choice.
The list was compiled by surveying over 1,700 real estate investors, developers, lenders, and advisors in both the U.S. and Canada.
“Our primary theme was around navigating the fog. We use that analogy because there’s a lot of uncertainty, both from a macroeconomic and real estate perspective,” Andrew Alperstein, a partner with PwC’s U.S. real estate practice, told CNBC Make It. “There’s a lot we’ve got to keep an eye on here with respect to migration trends and where companies want to do their business.”
Commercial and Residential Real Estate Is Booming
The Dallas metro area secured the top spot for both commercial and homebuilding prospects due to its business-friendly environment, strong migration, and relative affordability compared to other primary markets.
Alperstein told CNBC, ”It has a pretty diverse economy, is still relatively affordable, and there’s easy access to it.” He added that Dallas’ “great story…will likely continue from a migration perspective and ongoing development and expansion.”
The Attraction for Investors: Jobs
For real estate investors of all stripes, the big attraction to Dallas is its strong employment numbers. Large organizations like Toyota, State Farm, Amazon Web Services, and TIAA have all chosen North Texas as a base for operations, and, according to the Wall Street Journal, that has led to robust expansion in the Dallas metro area.
The U.S. Census Bureau reported that DFW was now the nation’s fourth-largest metro in 2023, with more than 8 million residents, and that it added more people than any other metro, with the fastest growth occurring in counties such as Kaufman. The region now sprawls over 9,300 square miles, according to Reuters, as suburban and exurban development extends from its core, with communities such as Frisco, Prosper, and Celina meeting demand for living there.
“The talent pool in North Texas is incredible. It’s a destination for young people now,” Raymond Bellucci, chief operating officer at TIAA Retirement Solutions, told the Journal, when explaining the firm’s decision to move into a new 15-story tower in Frisco —describing the region’s business environment as having “not a lot of red tape.”
Housing, Rents, and Cash Flow
The metro attracted about 100 corporate headquarters between 2018 and 2024, according to PwC, creating ongoing demand for housing to accommodate the workforce.
DFW’s metrics align well with what investors should consider when buying real estate there. According to Zillow, the average apartment rent in DFW is about $1,975 per month, while Payscale data shows the overall cost of living in Dallas was only 1% above the national average, with housing costs roughly 6% lower than the U.S. average. Together, the Dallas-Fort Worth area offers investors the opportunity for cash flow, livability, and long-term growth.
Crucially for investors looking to buy, there is a vast amount of newer, low-maintenance housing available, with massive residential construction projects underway. A New York Times analysis of census data and PropertyShark research between 2013 and 2023 found that the Dallas suburb of Farmers Branch was among the U.S. cities with the biggest shift toward newer housing, with the median build year of homes there at 25 years.
High Supply, Low Appreciation
The combination of softer purchase prices, steady rents, and an optimistic future makes Dallas-Fort Worth a metro area that checks all the boxes.
“The old joke is that we’re going to push all the way to the Oklahoma border, but it’s really starting to look like that,” Nick Wooten, who covers real estate for The Dallas Morning News, told the Texas Standard. “I mean, obviously, you have the big semiconductor projects in Sherman with Texas Instruments. You’ve also got some movement out in Kaufman County, a lot of homes being built out that way. And then the industrial market in Fort Worth with Hillwood and Alliance is just booming.”
The Equalizer: Insurance
No investment, no matter how appealing, is completely risk-free. For DFW, those risks manifest as insurance costs.
Severe storms comprising thunderstorms, hail, and tornadoes accounted for around 59% of global insured natural disaster losses in 2024, with 75% in the U.S., and the biggest losses hitting Sunbelt metros such as Dallas-Fort Worth, according to Reuters.
Insurance is the one sticking point that could seriously eat into investors’ cash flow. Insurance increases in Dallas for average residential homes have been $1,000 per year for the last four years.
Texas currently has some of the highest insurance rates in the country. The average cost of home insurance in 2024 was $6,000 per year, having climbed almost 19% year over year, according to the Texas Department of Insurance. KPRC 2 reports that in 2025, that figure was expected to rise by an estimated 9% to $6,500.
“Texas has been hit particularly hard by natural disasters, with 68 separate billion-dollar disasters impacting the state over the last five years,” Chase Gardner, a data insights manager with insurance comparison company Insurify, told KPRC 2. “Almost any type of natural disaster that can damage your home, Texas is at risk for that disaster.”
Final Thoughts
It seems there’s not much downside to investing in DFL Metroplex, aside from insurance. However, if you’re considering buying rentals here, it behooves you to double-check the landlord-tenant laws, as Dallas has some unique rules that might catch you off guard. Be prepared for rental property oversight programs, including regular inspections, tenants’ rights, and more.
