Markets to Watch

Dallas-Fort Worth named the No. 2 real estate market to watch in 2023

Dallas is the 8th best city in America for millennials to live.

Photo by Justin Terveen

The real estate market may be changing, but Dallas is still one of the hottest in the U.S. as we head into 2023.

The Urban Land Institute (ULI)'s annual Emerging Trends in Real Estate report, released October 27, names Dallas-Fort Worth the No. 2 U.S. market to watch in 2023, behind only Nashville.

The report, a joint project between ULI and PricewaterhouseCoopers, "provides an outlook on real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues throughout the United States and Canada."

It is based on surveys and interviews with real estate industry professionals.

After an in-depth analysis, the report identifies the top U.S. markets to watch, based on overall real estate prospects. Austin, San Antonio, and Houston join DFW in the top 15, at at Nos. 4, 12, and 14, respectively.

A top trend heading into 2023 is the continued "normalization" of markets following the post-COVID boom. Notes the report: "Almost every market in the country received lower ratings for both investment and development prospects this year, illustrating that outlooks are darkening just about everywhere following the brief post-COVID exuberance shown in last year’s survey across a variety of metrics."

However, it continues, "the pandemic seems to have reinforced some trends, notably the dominance of what we called the 'Magnet' markets — many of which are in warmer Sun Belt regions — at the top of the Emerging Trends 'Markets to Watch' standings."

Those "Magnet" markets include Dallas-Fort Worth, as well as Austin, San Antonio, Houston, and others. The report further categorizes markets into subgroups, with Dallas, along with San Antonio and Houston, falling into the "Super Sun Belt" group.

"These markets are large and diverse but still affordable, forming powerhouse economies that attract a wide range of businesses. Despite their large population bases, most are among the fastest-growing markets in the United States. Moreover, their economic performance has been solid through thick and thin," the report states.

"Though every market lost jobs during the pandemic recession, recovery has been much quicker and more complete in the Super Sun Belt markets. These metro areas collectively have the highest average rating of any subgroup, as it did last year."

Austin is classified as a real estate "Supernova," defined as a smaller metro area (1 to 2 million residents) that has "exploded into prominence over the past decade or so."

According to the report, Austin has the highest investor demand of any market, with Dallas just two spots below. Dallas, meanwhile, tops the list for development/redevelopment opportunities, with Austin at No. 6. Both cities boast the strongest local economies among the markets studied, with Austin at No. 1 and Dallas at No. 2.

Dallas Got Robbed

The richest small town in Texas is surprisingly not in Dallas

Facebook / City of Bellaire, Texas

Houston neighbor Bellaire is the richest town in Texas.

A survey of affluent small towns has found one town in Texas to be at the top of the list, but shockingly, it is not in Dallas. The town of Bellaire, a small enclave within the Houston metro area, has earned the top spot as the richest small town in Texas for 2025. Boo.

The report, "The Richest Small Town in Every State," from GoBankingRates, selected one city from each state, using data from the U.S. Census Bureau's American Community Survey to determine the 50 richest small towns based on their median household income.

Describing Bellaire as a "small town" might be a misnomer. It's located less than 10 miles from downtown Houston and is fully surrounded by the City of Houston. It's really more of a wealthy enclave within Houston, with a population of just over 17,000 residents.

Those affluent citizens earn a median $236,311 in income every year, which GoBankingRates says is the 11th highest household median income out of all 50 cities included in the report.

The average home in this city is worth over $1.12 million, but Bellaire's lavish residential reputation often attracts properties with multi-million-dollar price tags.

Bellaire also earned a shining 81 livability score for its top quality schools, health and safety, commute times, with an abundance of exceptional local amenities.

Those include conveniently located grocery stores, coffee shops, diverse dining options, and spacious parks.

It's not the first time that Bellaire has caught the eye of GoBankingRates, which previously ranked it as the No. 23 wealthiest suburb in America, and it's been named on similar lists comparing the richest American cities.

Dallas can take comfort in the fact that a different survey found Lewisville to be of the cities attracting the most high-income households, meaning those that make more than $200,000. However, census data places the most recent median income in Lewisville at $85,002 — so it's nowhere close to catching up to Bellaire.

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