DFW home prices still comparatively affordable, but not the clear winner it once was

Before the recent housing surge, the DFW region offered affordable housing with steady, national-average growth of 3.7%. Surprisingly, DFW has experienced more balanced gains versus the ups and downs of the US.

During the 2006-2011 “housing bubble", prices came down 2% in DFW versus a crash of 31% for the US average thanks to the region avoiding the high home price speculation that led to the bust in most markets. From 1990 to 2017, DFW home prices have traditionally come in at 75% to 90% of the US median. This affordability advantage has been a prime factor in advancing DFW’s economy by attracting labor and company expansions or relocations from across the US.

From 2016 to 2023, however, DFW's booming economy has driven a 63% surge in home values, narrowing the gap to the national median. Limited inventory and strong demand continue to push prices higher. In 2023, DFW’s existing median home came in at 96% of the US average. While the region is still comparatively affordable, it no longer carries its “affordability edge”.  Rising housing prices in DFW could cause skilled workers and businesses to consider other markets offering similar overall expenses or that are currently more affordable with the potential for significant future growth.