{"id":184000,"date":"2025-07-25T11:10:37","date_gmt":"2025-07-25T17:10:37","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=184000"},"modified":"2025-07-25T11:10:40","modified_gmt":"2025-07-25T17:10:40","slug":"why-dallas-is-a-hot-market-despite-high-prices","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/why-dallas-is-a-hot-market-despite-high-prices","title":{"rendered":"Dallas is Booming\u2014But is it a No-Brainer Investment?"},"content":{"rendered":"\n

On a list of any prospective landlord\u2019s or <\/span>flipper’s<\/span><\/a> must-haves when looking for an area in which to invest is high demand and continued, predictable growth. Those features make Dallas, Texas, a gold mine.<\/span><\/p>\n\n\n\n

North Dallas: A Force of Nature<\/span><\/h2>\n\n\n\n

Dallas’s expansion has been so dramatic that it is now spilling into neighboring states, and it doesn’t appear to be slowing down anytime soon, according to <\/span>The Wall Street Journal<\/span><\/a><\/em>. <\/span><\/p>\n\n\n\n

North Dallas, in particular, has been like a force of nature, pulling in residents and companies from other states and countries and assimilating them into the new Texas economy.<\/span><\/p>\n\n\n\n

To keep pace with the growth, new housing developments are sprouting like toadstools after rainstorms. According to an analysis by commercial real estate services company<\/span> CBRE<\/span><\/a>, Dallas ranked first for corporate relocations from 2018 to 2024, attracting notable companies such as Toyota, Amazon, and Charles Schwab, among others. <\/span><\/p>\n\n\n\n

Tech Is Fueling a Housing Surge<\/span><\/h2>\n\n\n\n

Fueling the surge is the tech industry, with<\/span> Texas Instruments recently announcing<\/span><\/a> it would invest as much as $40 billion to construct a massive semiconductor campus, just 12 miles from the Oklahoma state line, marking North Dallas’ relentless expansion north.<\/span><\/p>\n\n\n\n

The <\/span>Journal<\/span><\/em> pinpoints Frisco as the center of the North Dallas growth spurt. In 1990, the population was approximately 6,000. <\/span>Today, that number is over 240,000 and on <\/span>its way<\/span> to 350,000 <\/span>in<\/span> the next five years, according to city planners.<\/span> And there are other Friscos in the area, such as Prosper and Celina, with rapidly expanding infrastructure (schools, roads, and stores) to accommodate the growth. <\/span><\/p>\n\n\n\n

All this means that the North Dallas corridor is one of the safest places to invest your money. “The talent pool in North Texas is incredible,\u201d Raymond Bellucci, chief operating officer at TIAA Retirement Solutions, told the <\/span>Journal<\/span><\/em>. \u201cIt’s a destination for young people now.\u201d <\/span><\/p>\n\n\n\n

Bellucci\u2019s firm moved into a new 15-story office tower in Frisco in August. It sits in an alternative energy-fueled building in a $1.5 billion, 91-acre development, The Star, built by Dallas Cowboys owner Jerry Jones, whose club also has its headquarters there.<\/span><\/p>\n\n\n\n

Available Land Encourages Urban Sprawl<\/span><\/h2>\n\n\n\n

Dallas\u2019 growth has been made possible by an abundance of land to accommodate its urban sprawl. However, despite Texas’s relative affordability compared to other parts of the country, if you plan to buy and hold in North Dallas, you will have to purchase with cash or a sizable <\/span>down payment<\/span><\/a> and reap the <\/span>equity<\/span><\/a> rewards down the line.<\/span><\/p>\n\n\n\n

The average apartment rent in Dallas is <\/span>around<\/span> $1,700\/month, according to <\/span>RentCafe<\/span><\/a>, and home prices <\/span>tend to<\/span> start around $450,000.<\/span> The median price of a sold home, according to <\/span>Realtor.com<\/span><\/a>, is currently $605,000, so cash flow is not a viable option.<\/span><\/p>\n\n\n\n

North Dallas: A Safe Place to Buy<\/span><\/h2>\n\n\n\n

If you are liquidating another rental and considering a <\/span>1031 exchange<\/span><\/a> or selling another asset, North Dallas is one of the safest places to stash your cash. <\/span>At the end of 2024, international accounting firm PricewaterhouseCoopers and global nonprofit real estate research and education organization the Urban Land Institute<\/span> released a report<\/span><\/a> attesting to<\/span> the Dallas-Fort Worth (DFW) area <\/span>being<\/span> the <\/span>U.S.’s<\/span> top spot for real estate investment and development <\/span>for<\/span> 2025, due to its surging population and <\/span>rock-solid<\/span> economy.<\/span><\/p>\n\n\n\n

Home prices in the Dallas area have experienced dramatic growth over the last five years. While median single-family homes in the city of Dallas have appreciated by more than 80%\u2014$295,000 in January 2020 to $539,000 in June 2025, according to the<\/span> Houston Association of Realtors<\/span><\/a>, the PwC and ULI report puts overall price growth in the DFW metro area at around half that number, which is still explosive.<\/span><\/p>\n\n\n\n

“Dallas continues to attract new businesses and residents who are capitalizing on our attractive economic climate; availability of new, highly skilled talent; and first-class developments,” Tamela Thornton, executive director of ULI Dallas-Fort Worth, told the<\/span> Dallas Morning News<\/span><\/a><\/em> in a statement. <\/span><\/p>\n\n\n\n

Appreciation Over Cash Flow<\/span><\/h2>\n\n\n\n

Given that <\/span>cash flow<\/span><\/a> is challenging in the Dallas area, due to demand and appreciation, flipping houses remains a viable option in the city, according to a study by ViewHomes, highlighted in<\/span> Newsweek<\/span><\/a><\/em>.<\/span><\/p>\n\n\n\n

However, as with any market, choosing where to flip requires granular-level research to identify burgeoning, in-demand neighborhoods. <\/span>Certainly<\/span>, if you’re looking for less-expensive distressed houses where you can buy low and also sell <\/span>fairly<\/span> low, North Dallas isn’t the place to find them. Rehabbers will need <\/span>fairly<\/span> deep pockets to get in the game. <\/span><\/p>\n\n\n\n

The airport and adjoining Tollway area are the gateway to flipping freedom. \u201cThat Tollway is like liquid gold,” Candace Evans, author of a popular real-estate website<\/span> Candy’s Dirt<\/span><\/a>, told the <\/span>Journal<\/span><\/em>. <\/span><\/p>\n\n\n\n

Frisco: A Well-Planned Success Story<\/span><\/h2>\n\n\n\n

The town of Frisco is emblematic of a well-planned expansion, investing tax dollars in schools and infrastructure, thereby bypassing the city’s public transportation system, which makes it attractive to higher earners. <\/span><\/p>\n\n\n\n

“We wanted to be intentional about creating a sense of place and making different areas unique,” Mayor Cheney told the <\/span>Journal<\/span><\/em>. Thus, North Dallas became a hub for employees of companies relocating to areas such as Frisco and nearby Plano, McKinney, Allen, and Coppell, adopting the same master-planned approach to development.<\/span><\/p>\n\n\n\n

“There’s still a lot of growth north of the Celina area, pretty much to the border of Oklahoma, that’s still out there to <\/span>be had<\/span>,” Chad Sterling, chief executive of Altair Global, told the <\/span>Journal<\/span><\/em>.<\/span><\/p>\n\n\n\n

Entertainment and Businesses Are Flocking<\/span><\/h2>\n\n\n\n

Frisco has recently attracted the Professional Golf Association (PGA) from Palm Beach, Florida, to build a 600-acre golf complex. Additionally, a new luxury 2,500-acre residential golf development, Fields, features retail and office space. And a Universal theme park is set to open in summer 2026.<\/span><\/p>\n\n\n\n

Clearly,<\/span> homebuyers will be affluent and probably spoiled for choice with new master-planned developments, which rules flippers out. Tech and medicine are <\/span>big<\/span> sources of employment. <\/span><\/p>\n\n\n\n

And one demographic to watch: 44% of new students in Frisco are Asian, according to<\/span> school data<\/span><\/a>. “There’s one thing that’s unique about South Asian families,” Nitin Gupta, a local real-estate agent, told the <\/span>Journal<\/span><\/em>. “They want a brand-new home.”<\/span><\/p>\n\n\n\n

Ways for Real Estate Investors to Make Money in North Dallas<\/span><\/h2>\n\n\n\n

There are several ways investors can capitalize on the predictable growth in North Dallas.<\/span><\/p>\n\n\n\n

Preconstruction<\/span><\/h3>\n\n\n\n

With new homes in Frisco costing just under $1 million and house prices seemingly escalating upward, regardless of interest rates, there is an opportunity for highly liquid investors to <\/span>make money<\/span>. Buying preconstruction lots and selling them when finished in an escalating market is a risky proposition that can bring short-term profits, if done right.<\/span><\/p>\n\n\n\n

Flip a townhome<\/span><\/h3>\n\n\n\n

Townhomes are often low-hanging fruit because couples tend to buy them and live there for a few years before starting a family and selling. A cosmetic rehab offers the chance for quick cash.<\/span><\/p>\n\n\n\n

Buy-and-hold townhomes<\/span><\/h3>\n\n\n\n

Townhomes are good buy-and-holds for the same reason they make good flips: Couples often don’t plan to stay long, so rather than spending their money on down payments, closing costs, and maintenance on a new home, they prefer to rent while saving for their dream home.<\/span><\/p>\n\n\n\n

Multifamily residences<\/span><\/h3>\n\n\n\n

Despite real estate agent hype, not everyone wants to live in a sparkling new home and pay top dollar for the privilege, especially if it means negotiating a commute. A<\/span> Zillow search<\/span><\/a> yields 63 <\/span>multifamily<\/span><\/a> units for sale in the Dallas area, with prices ranging from<\/span> $485,000<\/span><\/a> for a five-unit residence built in 1942 to<\/span> $6.5 million<\/span><\/a> for a new construction 12-unit building.<\/span><\/p>\n\n\n\n

Final Thoughts <\/span><\/h2>\n\n\n\n

In the current housing market, North Dallas and Dallas are generally an anomaly\u2014house prices appear unaffected by high interest rates, despite time on market increasing. In fact, according to<\/span> Redfin<\/span><\/a>, house prices have <\/span>increased<\/span> steadily this year, with the median sale price up 13% <\/span>year over year<\/span> as of June.<\/span><\/p>\n\n\n\n

Rents are also increasing. Ashley Flores, chief of housing at the Child Poverty Action Lab, told the<\/span> Dallas Observer<\/span><\/a><\/em>:  <\/span><\/p>\n\n\n\n

“Even though renter household earnings have increased in the last decade, home prices have increased faster. <\/span>So<\/span>, renter households are not <\/span>making the transition<\/span> to homeownership at the same <\/span>rates<\/span> they have in the past.<\/span> And so higher-income households are staying renters longer, which puts additional downward pressure on the rental market.”<\/span><\/em><\/p>\n\n\n\n

All this means that Dallas is a city where both landlords and flippers still have options.<\/span><\/p>\n\n\n\n

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