Dallas, TX Housing Market
AI-powered market intelligence for the Dallas-Fort Worth-Arlington, TX metro area.
PropertyIQ Scores
Dallas, TX Market Analysis
Market Overview
Dallas, TX currently presents a weak market profile according to its PropertyIQ Score of 8 out of 100. That low score is driven by soft home value momentum: a 12-month momentum figure of -0.33% and a 3-month momentum figure of -1.29%. Additional drags include a median days on market of 54 days and a share of listings with a price cut at 28.3%. While these are short-term signals, they position Dallas well below what would be considered a balanced or strong market in this scoring framework.
Against Texas state averages, the Dallas picture is mixed. The median home value in Dallas is $364,793, notably above the state average of $301,806. The rent index is also higher at $1,667 compared with $1,339 statewide. Median household income supports some of that higher cost structure at $87,155 versus $76,292 across Texas. However, unemployment is slightly less favorable at 4.7% compared with the state average of 4.4%. The higher income and rent levels show underlying economic scale, but the score and momentum metrics show that current housing demand is not translating into price strength.
Overall, Dallas looks like a higher-cost Texas market that is currently cooling. The PropertyIQ Score of 8/100 reflects weakening near-term conditions rather than a market that is outperforming on price. Buyers and sellers should read the benchmark advantage in home values and rents cautiously, because the leading indicators point to slower activity.
Key Trends
The first trend is negative home value momentum. The 3-month momentum of -1.29% is more negative than the 12-month momentum of -0.33%, suggesting that price softness has deepened recently rather than stabilized. The reported year-over-year home value change of $-0 also points to essentially flat annual appreciation, with no meaningful annual gain to offset the shorter-term declines.
A second trend is slower sales conditions. Dallas shows 54 days on market, meaning homes are taking nearly two months to sell. At the same time, 28.3% of listings have had a price cut. That share indicates a meaningful portion of sellers are adjusting asking prices to attract buyers. With 29,742 homes for sale, inventory is sizeable in absolute terms, although the dataset does not provide a state inventory benchmark for direct comparison.
A third trend is affordability pressure relative to Texas. Dallas has a median home value of $364,793 while the state average is $301,806. Although Dallas median household income of $87,155 is also above the state average of $76,292, the gap in home values is wider than the gap in incomes. The rent index of $1,667 versus $1,339 statewide shows that renting in Dallas is also more expensive than the Texas norm.
A fourth trend is a slightly softer labor market. The Dallas unemployment rate is 4.7%, compared with 4.4% for Texas as a whole. The difference is modest, but it does not provide a counterweight to the negative price momentum. Population growth is not available in the provided data, so migration-driven demand cannot be assessed.
Who Is This Market For
This market may be best suited to long-term owner-occupants and buy-and-hold rental investors rather than short-term flippers or appreciation-focused buyers. The 8/100 PropertyIQ Score and negative price momentum suggest that anyone expecting quick price gains would be working against the current trend. The 28.3% share of listings with price cuts and 54 days on market may give buyers more room to negotiate, but they should plan for the possibility of limited near-term appreciation.
The rental profile may interest income-focused investors. Dallas has a rent index of $1,667, above the state average of $1,339. However, investors should balance that against soft price momentum and a slower sales pace. First-time buyers may find the higher median home value of $364,793 challenging compared with the state average of $301,806, even though median household income is higher at $87,155. Move-up buyers with existing equity may be in a better position to take advantage of seller price cuts, provided they can accept a longer resale timeline later.
Outlook
The data suggests continued softness in the Dallas housing market near term. With 3-month home value momentum at -1.29%, 12-month momentum at -0.33%, and more than one in four listings showing a price cut, the near-term pressure is clear. The 54 days on market and 29,742 homes for sale indicate that inventory is not being absorbed quickly enough to support price growth. While the rent index of $1,667 and median household income of $87,155 provide some underlying economic support, the current trend data does not point to an imminent rebound. The year-over-year home value change of $-0 and the unemployment rate of 4.7% versus 4.4% statewide align with a slow, buyer-favorable market in the immediate future. Population growth data is unavailable, so that demand channel remains unknown.
AI-generated analysis based on current market data. Last updated August 21, 2026.
Get Dallas, TX market updates
Choose your role for tailored insights.
Dallas, TX market data
Dallas, TX Housing Market Overview
Dallas, TX's median home value is $365K, down 0.3% over the past year. Homes here sell in a median 54 days. Its PropertyIQ Score of 8 sits below the state average of 50, marking a market positioned to lag its state over the next three years.
PropertyIQ tracks the Dallas, TX housing market through two complementary lenses: price momentum from Zillow home-value trends over 3 and 12 months, and demand pressure from how quickly homes sell and how often sellers cut prices, drawn from Realtor.com. The PropertyIQ Score distills these into one number that predicts how this TX market is set to perform against its state benchmark.
South Central housing markets are propelled by energy sector economics, corporate relocations, and rapid population growth. Texas metros in particular have seen explosive expansion, though affordability pressures are emerging in the fastest-growing areas. Within the South Central, Dallas, TX's PropertyIQ Score of 8 runs below the South Central norm.
Texas continues to be one of America's top relocation destinations, with no state income tax and a business-friendly regulatory environment driving corporate headquarters relocations and population growth.
For the Dallas, TX market, PropertyIQ calculates a single score each month from four inputs: twelve-month Zillow home-value momentum, three-month Zillow home-value momentum, median days on market from Realtor.com, and the Realtor.com price-reduced share. The score is computed nationally across all metros and calibrated so 50 equals the state average. Across the validation history, metro markets in the top score band have outperformed their state by roughly 1.7 percentage points more per year than bottom-band markets. Momentum here has been negative, with home values down 0.3% over the past year.
Explore the interactive map to see how Dallas, TX compares to neighboring metros, or view the full market dashboard for detailed analytics including time-series trends, score breakdowns, and AI-generated market reports.
Counties in the Dallas, TX metro area
ZIP codes in the Dallas, TX metro area
View all 257 →Top markets in TX
Market data through July 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Dallas, TX a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Dallas, TX currently scores 8, a very weak-momentum reading that leaves it positioned to lag its state over the next three years. For buyers, cooling demand usually brings more inventory, longer sale times, and real leverage to negotiate on price. Backing that up, the median home value here is $365K, down 0.3% over the past year. So whether Dallas, TX is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Dallas, TX?
Dallas, TX's PropertyIQ Score is 8, indicating very weak momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 8 places Dallas, TX below its state benchmark.
Are home prices in Dallas, TX rising or falling?
Home prices in Dallas, TX are falling. Over the past year, the median home value declined 0.3%, reaching $365K. Over the latest three months, values slipped 1.3%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Dallas, TX's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Dallas, TX?
In Dallas, TX, homes sell in a median of 54 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 28% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Dallas, TX market data is refreshed on a monthly cycle, with the latest figures current through July 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.