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DFW Expected to be Hottest Real Estate Market in 2026

DFW: Dallas-Fort Worth is expected to be the top real estate market in the country in 2026 because of the region’s diverse economy, among other factors. It’s the second consecutive year that PwC and the Urban Land Institute have selected North Texas ahead of other regions primarily because of its low cost of living, accessibility and the right business climate to get deals done. About 1,700 real estate developers, investors, lenders and others across the United States and Canada responded to a survey from PwC and the Urban Land Institute for its Emerging Trends in Real Estate 2026 report. Dallas, which has welcomed 100 corporate headquarter relocations in the past six years, has consistently ranked high in both commercial and residential growth. Migration to Dallas from across the country and abroad continues at a steady pace and Dallas is expected to surpass Chicago as the country’s third-largest metro in the next 10 years. PwC and the Urban Land Institute said that other areas to watch for next year include Jersey City, N.J., Miami, Brooklyn and Houston. 

U.S.: New homeowners are getting older. The National Association of Realtors says that the median age of first-time homebuyers continues to rise. It’s now at 40 years old, up from 38 years old last year and 33 years old just five years ago. First-time homebuyers, who have a median income of around $94,000, are in a market reality in which homes and mortgages are more expensive than several years ago and are facing off against older competitors who typically have more wealth. First-time homebuyers have accounted for only 21% of all the home transactions this year. Repeat buyers have a median age of 62, and the median age of all homebuyers is 59. NAR reports that about 26% of all home transactions this year were cash deals. The good news this week for potential homebuyers: the traditional 30-year mortgage rate dipped to 6.17%, and many sellers are wanting to make deals.

U.S.: Speaking of higher home prices, higher mortgages and affordability, it appears those once very-popular ARMs have gained some popularity. Adjustable-rate mortgages accounted for about 10% of all mortgage applications in September. That’s above the 6% average after the Great Recession, says the Mortgage Bankers Association. ARMs saw their highest numbers in 2005 at 35%. At the end of October, the average rate on a 5/1 adjustable rate was 5.66%, compared to the 30-year fixed rate which was over 6.20%. For a $400,000 mortgage in that financing scenario, the homeowner could save about $200 per month with an ARM. Many homeowners who opt for the ARMs plan to move, sell or refinance during the initial fixed-rate period. The Mortgage Bankers Association notes that ARMs today are less risky than years past and those who qualify have better credit. 

DFW: Most real estate agents seem to agree on one thing in this current market: pricing. HomeLight says that in a recent survey of real estate agents across the country, 77% of those agents said that sellers’ No. 1 mistake is overpricing their homes. The tech and data company serving the real estate industry says that current homebuyers are savvy about comparable sales and are aware that the market is shifting to their advantage. It said that sellers who opt for higher initial listing price may encounter the home sitting on the market for a longer period before they eventually have to lower the price and oftentimes have to lower it even further. By pricing it correctly at the start, homeowners many times are able to get the best offer on their home and avoid buyers looking for better deals for similar homes, HomeLight said. 

BIG APPLE: Livvy Dunne’s social media status had a different kind of influence on the board of a co-op building where she hoped to buy an apartment once owned by The Great Bambino. She struck out, perhaps because she posted about putting down an all-cash offer of $1.6 million and of hiring an interior designer and her plans to transform Babe Ruth’s former apartment located in a building in the subdued Upper West Side. The co-op board rejected her. She has since purchased a one-bedroom, two-bath condo for $2 million in the West Village, perhaps a better fit for the lifestyle of the 23-year-old former gymnast and girlfriend of MLB phenom Paul Skenes. 

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