Routing # 256078446
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Dallas Real Estate Market Trends: Impacts of Population Growth
What you'll learn: How the rising population in Dallas is affecting the housing market in 2025.
EXPECTED READ TIME: 4 MINUTES
May 28, 2025
Dallas, Texas is a vibrant city known for its iconic cowboy culture, Tex-Mex cuisine, and continued population growth. It seems that many homebuyers are embracing a desire to settle down in the Lone Star State’s third most populous city. But with this booming population comes new challenges and opportunities, especially when it comes to homebuying.
In this article, we will dive into current real estate trends, how the surging number of people moving to Dallas has affected the local housing market, and what the city is doing to accommodate its expanding population.
How Dallas’s population growth is shaping housing demand and development
Between 2020 and 2024, the Dallas-Fort Worth area saw its population increase from 7.6 million to 8.3 million. Though there have been indications that this growth is starting to slow down, the metroplex area and surrounding counties were the some of the fastest growing populations in the country. However, as the number of people increases, so does the demand for housing and competition in the real estate market.
When will Dallas be a buyer’s market?
The competition between homebuyers who are entering Dallas’s real estate market has begun to show signs of a cool off since the start of 2025. However, the shift from a seller’s market to a buyer’s market is a slow one. Homebuyers who are looking to plant their roots in the area should be prepared for continued competition in the market and less power in negotiations with home sellers.
When will housing prices go down?
As of February 2025, the median price of homes that were sold in Dallas was $400,000, marking a 9.2% price decline since 2024. The average home value stands at $318,689 as of May 2025, a 3.2% decrease compared to last year’s average. However, listed Dallas homes typically go under contract within 40 days, indicating the local market is still a fast moving one.
Dallas housing market in 2025
There is no way to guarantee the future direction of the Dallas real estate market, but a number of factors can give us a good indication, including trends like:
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Increasing real estate inventory levels and homes listed on the market, offering homebuyers more options to choose from
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Stable mortgage rates helping to boost buyer confidence
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Dipping home prices that are expected to continue trending downwards
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Continued population and economic growth
Is it a good time to buy a home in Dallas?
Buying a home is an incredibly personal journey, and the right time is different for everyone. However, prospective homebuyers may feel more confident entering the local market thanks to stabilizing mortgage rates, increased inventory levels, and a strong local economy.
The key to a successful homebuying journey is staying informed and building a homebuying dream team that can help you through every step of the process. Some lenders can offer you access to an entire network of trusted real estate agents who can help you navigate local housing markets and walk you through all of your home loan options. That way you can go from a curious homebuyer to a confident Texan homeowner.
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Types of Mortgages: A Guide to the Types of Mortgage Loans
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Home Buying Steps
Mortgage Products
Disclosures
1Conventional Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.0 discount point, which equals 1.0 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
2FHA Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.25 discount point, which equals 1.25 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 96.5%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
3VA Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.375 discount point, which equals 1.375 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $450,000; loan-to-value ratio of 95%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of $995.
4Jumbo Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.0 discount point, which equals 1.0 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, non-conforming, fixed-rate loan. Loan amount of $1,009,000; loan-to-value ratio of 70%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Advance Period. During your Advance Period, you may choose to have three separate Fixed Rate Advances locked in at any one time, with a maximum of two new Fixed Rate Advances per calendar year. Each Fixed Rate Advance must equal or exceed Ten Thousand Dollars ($10,000.00) and you may not request a Fixed Rate Advance that would cause the amount you owe to exceed your Credit Limit. The only term option for your Fixed Rate Advance is 240 months (“Fixed Rate Advance Term”). However, the term of your Fixed Rate Advance cannot exceed your Repayment Period.
Routing #256078446
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