Dallas-Fort Worth is the No. 1 market to watch in 2026, a title it has earned for the second year in a row.
Global accounting and financial services provider PwC and the influential Urban Land Institute just released their yearbook Emerging Trends in Real Estate 2026 Reportranking the top 10 markets to watch in 2026 and calling the Texas city the top choice.
The list was compiled by surveying more than 1,700 real estate investors, developers, lenders and advisors in both the US and Canada.
“Our main theme was navigating the fog. We use that analogy because there is a lot of uncertainty, both from a macroeconomic perspective and from a real estate perspective,” said Andrew Alperstein, a partner in PwC’s U.S. real estate practice. CNBC Make it. “There is a lot to pay attention to when it comes to migration trends and where companies want to do business.”
Commercial and residential real estate is booming
The Dallas metro area secured first place in both commercial and the prospects for residential construction thanks to the business-friendly environment, strong migration and relative affordability compared to other primary markets.
Alperstein told CNBC: “It has a pretty diverse economy, it’s still relatively affordable and it’s easy to access.” He added that the “great story of Dallas…will likely continue from a migration perspective and continued development and expansion.”
The draw for investors: jobs
For real estate investors of all stripes, the big draw to Dallas is its real estate industry strong employment figures. Major organizations such as Toyota, State Farm, Amazon Web Services and TIAA have all chosen North Texas as a base and, according to the Wall Street Journal, that has led to robust expansion in the Dallas metro area.
The US Census Bureau reported that DFW was now the nation’s fourth-largest metro area in 2023, with more than 8 million residents, and added more people than any other metro area, with the fastest growth occurring in counties like Kaufman. The region now covers more than 9,300 square kilometers Reutersas suburban and exurban development extends from the core, with communities like Frisco, Prosper and Celina meeting the demand to live there.
“The talent pool in North Texas is incredible. It is now a destination for young people,” Raymond Bellucci, chief operating officer at TIAA Retirement Solutions, told the Magazineas he explained the company’s decision to move to a new 15-story tower in Frisco, describing the region’s business environment as “not a lot of red tape.”
Housing, rental prices and cash flow
According to PwC, the metro attracted around 100 corporate headquarters between 2018 and 2024, creating continued demand for housing to house the workforce.
DFW’s figures correspond well with what investors should take into account when purchasing real estate there. According to Zillow, the average apartment rent in DFW is approx $1,975 per monthwhile Pay scale Data shows that the overall cost of living in Dallas was just 1% above the national average, while housing costs were about 6% lower than the U.S. average. Together, the Dallas-Fort Worth area offers investors the opportunity to cash flowviability and growth in the long term.
Critically for investors looking to buy, there is a huge amount of newer, low-maintenance homes available, with massive housing developments 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 U.S. cities with the largest shift to newer homes, where the average year of construction of homes there is 25 years.
High supply, low appreciation
The combination of softer purchase prices, stable rental prices and an optimistic future makes Dallas-Fort Worth a metropolitan area that ticks all the boxes.
“The old joke is that we’re going all the way to the Oklahoma border, but it’s really starting to look like that now,” said Nick Wooten, who deals in real estate. The Dallas Morning Newstold the Texas standard. “I mean, obviously you have the big semiconductor projects in Sherman with Texas Instruments. You also have some movement in Kaufman County, a lot of houses is being expanded 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 attractive, is complete risk-free. For DFW, these risks manifest themselves in the form of insurance costs.
Severe storms, consisting of thunderstorms, hail and tornadoes, were responsible for approximately 59% of global insured natural disaster losses in 2024, with 75% of those occurring in the US. largest According to Reuters, losses are hitting Sunbelt metro companies like Dallas-Fort Worth.
Insurance is the one bottleneck that could seriously affect investors’ cash flow. In Dallas, insurance rates for average residential properties have increased €1,000 per year for the past 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 yearafter rising nearly 19% year over year, according to the Texas Department of Insurance. KPRC 2 reports that this figure will reach 2025 was expected estimated to rise 9% to $6,500.
“Texas has been hit particularly hard natural disasterswith 68 separate billion-dollar disasters hitting the state in the last five years,” Chase Gardner, a data insights manager at insurance comparison firm Insurify, told KPRC 2. “Almost any natural disaster that could damage your home, Texas is at risk of that disaster.”
Final thoughts
It doesn’t seem like there are many downsides to investing in DFL Metroplex, other than insurance. However, if you are considering purchasing rental properties here, you should double check the laws between landlords and tenants as Dallas has some laws unique rules that might catch you off guard. Be prepared for rental property monitoring programs, including regular inspections, tenant rights and more.
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