ULI Emerging Trends Report: DFW Named Top Market to Watch, Houston Ascends, Austin Falls Outside Top 10

by Taylor Williams

LAS VEGAS — Dallas-Fort Worth (DFW) has secured the top spot in the latest rankings of markets to watch in terms of overall real estate prospects in the Emerging Trends in Real Estate 2025 report, which is jointly produced every year by the Urban Land Institute (ULI) and accounting firm PwC. Austin ranked No. 15 on the list, marking the first time since 2010 that the state capital has fallen outside of the Top 10. Houston took the bronze medal at No.3, and San Antonio ranked 13th among the top markets to watch in 2025 (Miami was No. 2).

The report cited impressive, sustained job and population growth in DFW that have not compromised affordability as the key factors behind the metroplex’s top ranking. Although the median single-family home price in DFW has increased by 38 percent since early 2020, the figure of $382,000 still puts the metroplex on par with national averages, according to the report. The report’s authors also expressed apprehension about unusual weather events in the area impacting real estate values and activity, but those concerns were overridden by exceptional demographics and economic diversity.

Houston similarly saw its ranking rise due to jobs and people. The Houston MSA is the fifth largest in the country by sheer headcount, and the report emphasized the market’s economic divergence away from energy via growth in other industries like distribution and healthcare. Port Houston remains a crucial driver of economic activity and subsequent real estate prospects, accounting for roughly 20 percent of Texas’ gross domestic product (GDP). Lastly, the Bayou City also maintains a high degree of affordability, boasting a cost of living index that is 28 percent below the national average, according to the report.

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