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.

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Dallas neighbor declared No. 1 Texas city for first-time homebuyers

Photo courtesy of Arista McKinney

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The Dallas housing market may not be for everyone, but one shining suburb is a cut above the rest. McKinney has been named the best market for first-time homebuyers in Texas, and it's among the 100 best in America, according to a new study.

WalletHub's new study — which analyzes the affordability, quality of life, and real estate market in 300 U.S. cities — ranks McKinney No. 70 overall in the U.S. to buy your first home. And, when broken down by city size, WalletHub ranks McKinney No. 31 out of 102 mid-sized cities in America.

McKinney's outstanding real estate market and quality of life are the biggest appeal for first-time buyers, with affordability its main detractor, according to the report's findings.

The Dallas suburb ranks 9th out of all 300 U.S. cities studied for its housing market, and its quality of life is 61st nationally. The report found McKinney also boasts the second-lowest property crime rates in the U.S. The city's affordability ranking, however, is among the 50 worst, at No. 258, but that wasn't enough to outweigh its stellar performance in the other main categories.

Overall, the Lone Star State has taken a tumble among the best places for first-time buyers. McKinney is the only city in Texas to appear among the top 100, with a total of 20 Texas cities ranking below that section of the report.

For 2026, Dallas plummeted as the second-worst housing market for first-time homebuyers in Texas, ranking No. 233 nationally. Dallas' real estate market is the 60th best in the U.S., but its poor quality of life and affordability scores — No. 248 and No. 252, respectively — significantly brought down the city's overall performance.

This is how WalletHub ranked first-time homebuyer appeal across other cities in North Texas:

No. 106 – Plano
No. 110 – Grand Prairie
No. 111 – Denton
No. 130 – Fort Worth
No. 134 – Frisco
No. 148 – Allen
No. 170 – Richardson
No. 177 – Garland
No. 184 – Arlington
No. 189 – Irving
No. 194 – Carrollton
No. 202 — Mesquite

Laredo (No. 200), San Antonio (No. 208), and Houston (No. 271) join Mesquite and Dallas as the five worst housing markets for first-time buyers in Texas.

First-time buyers across the country are entering the housing market at a difficult time, the report says. The National Association of Realtors reported the share of first-time homebuyers sank to an all-time low in 2025, to 21 percent, whereas the historic national average is 40 percent.

"Buying a home for the first time is an exciting and important milestone for many Americans, but achieving that milestone is getting more difficult as prices and interest rates continue to rise," the report's author wrote. "People willing and able to invest in a house this year must balance what they want and need with what they can afford. Often, people begin searching for their dream home without a realistic idea of market prices, interest rates or even their eligibility for a mortgage."

wallethub real estate housing market first time homebuyers reports

Markets to Watch

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

Welcome Home

Dallas neighbor declared No. 1 Texas city for first-time homebuyers

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