D
allas-Fort Worth is poised to be the nation's hottest real estate market for investment and development next year, according to an annual forecast from PriceWaterhouseCoopers and the Urban Land Institute. The report, Emerging Trends in Real Estate, ranked D-FW as the best place to buy, build, and finance property in 2025, citing its "enviable" post-pandemic recovery, size, and demographic growth.

    North Texas improved upon its third-place ranking from last year, marking the sixth consecutive year it has been among the top 10. The region's total employment has grown 11.2% since February 2020, with D-FW trailing only Sunbelt peers in Raleigh, North Carolina; Charleston, South Carolina; and Austin, Texas.

    D-FW's economic diversity is also a major draw, with 23 Fortune 500 companies calling the metro home, the fourth-largest concentration in the country. The region has seen some of the best five- and 10-year returns on real estate investments, at 7.9% and 8.8%, respectively.

    Despite its growth, D-FW remains relatively affordable compared to other major housing markets. Median home prices have increased almost 38% since 2020 to $382,000, but are still about four to five times lower than the median household income in North Texas.

    The region's affordability and economic diversity should continue to attract new residents and businesses, according to the report. However, it warns that heat stress and fire may challenge the metro in the coming years. Tamela Thornton, executive director of ULI Dallas-Fort Worth, said the recognition as the top market will support efforts to address housing affordability and workforce development.

    Nationally, the forecast for 2025 is more confident than last year, but industry leaders remain cautious. Experts predict a slow and gradual recovery in the commercial real estate market, with data centers dominating the market and potential supply gluts in high-growth Sunbelt markets.