The Texas real estate market remains strong, and Dallas investment property is looking better than ever.
The Dallas-Fort Worth (DFW) metroplex is on track to be the nation’s top real estate market for investment and development in 2025, according to the latest Emerging Trends in Real Estatereport. This comprehensive analysis, based on insights from over 2,000 industry experts, highlights the region’s strong growth and potential.
The report, developed by PricewaterhouseCoopers and the Urban Land Institute, confirms the trends locals have noticed, such as increased construction activity and robust employment growth. Since February 2020, total employment in the region has grown by 11.2%, ranking as the fourth-fastest among U.S. metros, behind only Raleigh, Charleston, and Austin.
DFW has consistently ranked among the top real estate markets in recent years, having placed in the top 10 of this report for the past six years. It last claimed the No. 1 spot in 2019 and is set to return to the top in 2025 after ranking third for 2024 behind Nashville and Phoenix.
But that’s not the only reason why people are eyeing Dallas investment properties.
Several factors contribute to DFW’s rise as a leading market:
Post-Pandemic Recovery: The region has seen significant economic and demographic growth following the pandemic.
Population Expansion: Recent census estimates show the metro area has surpassed 8 million residents.
Economic Momentum: The area continues to attract businesses, jobs, and development at an impressive pace.
As you’ll see, Dallas is flying under the radar with huge investment options for a wide range of budgets.
In this guide, we’ll cover:
Key Dallas real estate market trends for 2025 and beyond.
Hot neighborhoods and towns ripe with property investment opportunities.
A step-by-step guide to finding and financing your Dallas investment property.
Let’s dive in.
Why invest in Dallas real estate?
The Dallas-Fort Worth Metroplex saw the largest population growth of any U.S. metropolitan area in 2023, according to the U.S. Census. The region added 152,598 new residents between 2022 and 2023, pushing its total population to over 8.1 million. This marked the biggest numeric increase among all U.S. metro areas during that period.
Of the thousands of new residents migrating to DFW each week, many are Millennials looking for big city living and job opportunities in America’s top job market. This higher-than-average Millennial demographic means a strong workforce with residents entering their highest-earning years.
Speaking of work, it’s not just individuals who are flocking to Dallas — huge corporations are setting up shop as well.
Dallas is home to an impressive list of Fortune 500 company headquarters, including McKesson Corporation, AT&T, and Southwest Airlines. And they keep rolling in. Over 21 companies relocated to North Texas since 2021, including engineering giant, AECOM.
Texas Instruments is also building four new semiconductor chip manufacturing plants in Sherman, just north of Dallas, a potential $30-billion project. This project alone is expected to house 3,000 workers when finished.
DFW’s appeal continues to draw businesses and new residents, with headquarters relocations and increased homebuilding activity further fueling the market. The region is also on track to potentially become the third-largest metro area in the U.S. by the end of the century.
The northern parts of the metroplex have experienced particularly rapid development. Projects like semiconductor manufacturing in Sherman and substantial home construction in Kaufman County highlight this growth. Additionally, Fort Worth’s industrial market is booming, driven by large-scale projects like Hillwood’s Alliance development.
All of these incoming companies and building projects are expected to boost the economy, attract workers, and drive up property values.
Dallas real estate market trends
While economic growth remains strong, the housing market has been less predictable. Rising mortgage rates, combined with a significant increase in housing supply, have kept prices relatively flat. Sales activity has also stagnated, as many buyers and sellers are waiting for clearer market trends in 2025.
Despite these challenges, Dallas-Fort Worth’s prominence in the real estate market underscores its dynamic and resilient economy. The region’s growth offers significant opportunities for investors, developers, and residents alike.
According to Redfin, citing data as of November 2024, the median home price in Dallas County dropped 2.2% year-over-year, settling at $360K. Homes in the area now spend an average of 44 days on the market, up from 35 days during the same period last year.
Rental prices are steadily increasing, according to Zumper, with the median rent for all bedrooms and all property types at $1,775.
Hot neighborhoods for Dallas investment properties
Bluebonnets in Irving, Texas
Irving
Irving is an inner-ring suburb of Dallas home to eight Fortune 500 global headquarters and 53 offices. Known as the “headquarters of headquarters,” Irving leads the nation with the most corporate headquarters per capita.
These include McKesson Corporation, ExxonMobil, Kimberly-Clark, and many others.
Irving currently does not have the housing supply to support employees from all these giant companies. And as more companies move in, demand for housing heats up. This competition has driven one-bedroom apartment rental prices up by 4% year over year, gradually steadying compared to the 20% increase the year prior.
Richardson
Richardson is another landlord’s dream. Home of the University of Texas at Dallas, a steady stream of students sustains demand and keeps vacancy rates low.
Richardson is also fairly close to two major companies — the Toyota plant in Plano and the new AECOM global headquarters in Far North Dallas.
The average rent for a one-bedroom apartment in Richardson is $1,599 in January 2025, up 13% from the previous year.
Frisco Commons Park - a popular destination for residents
Frisco
Frisco is a family-friendly suburb directly north of Dallas. Ranked one of the best places to live in DFW, Frisco topped the list of fastest-growing Texas cities from 2010 to 2020.
This growth has caused rental prices continue to rise. As of January 2025, the average rent for a 2-bedroom apartment in Frisco, TX is $2,225, a 7% increase compared to the previous year.
If you’re willing to look even further north, Texas Instruments plans to build four new semiconductor manufacturing plants in the city of Sherman, which could house up to 3,000 workers by 2025.
Munger Place
Munger Place is a historic district in Old East, Dallas, just northeast of downtown.
Established in 1905, Munger Place is a Dallas Landmark District full of beautiful prairie-style houses. The neighborhood was originally home to many of the city’s most prominent citizens. Now, it’s home to many renters.
In fact, renters occupy 77% of Munger Place homes, making it a great opportunity for landlords looking for properties close to downtown.
Euless
Euless, Texas, is a promising location for real estate investing in 2025 for several reasons. Euless is ideally situated within the Dallas-Fort Worth Metroplex, providing easy access to major employment hubs like Dallas, Fort Worth, and Arlington. Its central location appeals to renters and buyers looking for shorter commutes.
With its proximity to DFW Airport, Euless attracts professionals and families, creating consistent demand for rental properties. This steady rental demand ensures reliable cash flow for investors focused on long-term rental strategies. According to Redfin’s January 2025 data, there’s a 9% growth in rental rates for 4-bedroom apartments in Euless.
Downtown Fort Worth with Trinity River in the foreground
Hot Neighborhoods in Fort Worth
In addition to these hot areas, investment properties in nearby Fort Worth are also worth looking into as it offers several promising neighborhoods for real estate investment in 2025.
Arlington Heights is a historic neighborhood close to Fort Worth's cultural district and downtown, making it ideal for young professionals and families. Its mix of older homes and updated properties provides excellent opportunities for fix-and-flip projects or long-term rentals.
Near Southside, with its walkable and trendy vibe, attracts millennials and professionals, offering investment potential in mixed-use properties, multifamily housing, and short-term rentals.
Westcliff, located near Texas Christian University (TCU), is a hotspot for student housing and family-friendly living, where single-family rentals and value-add opportunities are in high demand.
Northside, known for its affordability and proximity to the historic Stockyards District, is an appealing market for short-term vacation rentals and affordable housing investments.
Alliance/Heritage area, economic development and corporate presence create demand for new construction homes and single-family rentals, particularly among young families and professionals.
The River District, located along the Trinity River, is one of Fort Worth’s fastest-growing areas, offering modern housing developments and outdoor amenities that attract young families and outdoor enthusiasts. For investors seeking suburban charm.
Benbrook provides affordable homes and a family-friendly atmosphere, ideal for long-term rental potential.
Stop Six is an emerging market undergoing revitalization with city investment in infrastructure and community development, making it a prime location for budget-conscious investors looking for affordable housing and long-term equity growth.
Each of these neighborhoods presents unique opportunities to cater to diverse tenant demographics and investment strategies.
Texas sunset in Dallas
How to buy an investment property in Dallas, Texas
The process for investing in Dallas real estate can be broken into five steps:
Are you looking for a fix-and-flip? Or would you prefer a rental property?
Do you want a turnkey investment? Or are you willing to BRRRR to grow your portfolio faster?
Defining your goals not only makes property hunting easier, but it also helps narrow down your financing options.
2. Determine your financing options
There are several ways to finance an investment property in Dallas, each with distinct advantages and disadvantages.
Your three main options are:
Conventional loans. Banks and traditional mortgage lenders typically offer the lowest interest rates, but they’re also the hardest to qualify for and longest to close.
Hard money loans. Hard money lenders in Dallas (or anywhere in Texas) offer loan products designed specifically for real estate investors — namely, they close faster with fewer requirements.
Joint ventures. If you have a track record of successful projects, you can recruit other investors to pool their money together to finance a more expensive property.
The best option for you depends on your financial history, investment experience, and speed requirements. In most cases, winning a property comes down to speed, which is where hard money loans shine.
3. Search for investment properties
Start by lasering in on a handful of neighborhoods you’re most interested in.
You can get a feel for prices in the area through online research, but for help finding off-market opportunities, network with wholesalers and agents specialized in your area of interest.
Once you find a promising Dallas investment property for sale, do your due diligence. That means looking into:
Population growth
The local job market
Household demographics
Upcoming construction projects
Rental prices, growth, and demand
Information on crime, schools, and public transportation
Don’t forget to do the math. Based on your estimated loan payments, local vacancy rates, and other expenses, what would you need to charge tenants to be cash-flow positive?
4. Finance your project
If everything checks out, you need to act fast. In most cases, the better the opportunity, the quicker it gets snatched up.
Choosing a conventional loan involves piles of paperwork and an underwriting process that can take months. If you’re confident your competition isn’t going to swoop in while you wait, this can be a great option.
But if you don’t want to risk it, you can work with a hard money lender to lock in a bridge loan in as little as 48 hours.
5. Refinance (if needed)
If you go with a bridge loan, you’ll need to refinance within 6 to 24 months. You can refinance with a conventional loan if you meet their strict requirements.
If not, most hard money lenders offer long-term rental loans, which are similar to a conventional mortgage. There are often benefits to sticking with the same lender for both loans.
At Longleaf, we can save you fees by bundling your bridge loan together with your refinance.
Need financing for a Dallas investment property?
Longleaf Lending is a Texas-based private lender and offers flexible loan programs designed for property investors who need to close as fast as possible. If you have any questions about investment property financing, give us a shout at 979-200-2823 or info@longleaflending.com.
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