LAS VEGAS — For the second consecutive year, Dallas-Fort Worth (DFW) has claimed the top spot in the rankings of markets to watch in terms of overall real estate prospects, according to the Emerging Trends in Real Estate 2026 report, which is jointly produced every year by the Urban Land Institute (ULI) and accounting firm PwC. Houston came in at No. 5 on the list after securing the third-place ranking in 2025. For the second straight year, Austin failed to crack the Top 10.
In explaining the top ranking, ULI and PwC cited familiar talking points, such as DFW’s business-friendly community and leadership, the metroplex’s accessibility and relatively affordable cost of living. Although burdened by a high overall office vacancy rate, DFW remains a national leader in office-to-multifamily conversion projects and has seen resurgent absorption within the Class A segment of the office market, the report noted. Dallas proper is also emerging as a regional financial hub, as evidenced by “the pending launch of the Texas Stock Exchange in downtown Dallas, along with local expansions of the New York Stock Exchange and NASDAQ.”
The real estate community remains bullish on Houston due to the exceptional population growth throughout Harris County in recent years, as well as ongoing economic diversification efforts that have lessened overall reliance on volatile energy sectors and activity at Port Houston. Healthcare, distribution and aviation/aerospace manufacturing are among the now-established — and relatively inelastic — industries driving major job growth in greater Houston. The report noted, however, that within the office market, the “flight to quality trend is amplified in Houston.” Sales and redevelopments of older office buildings in Houston, a market famous for its lack of zoning, will be trends to monitor in coming years.