Renting a Home Still Cheaper Than Buying in Dallas: 2025 Update

On average, DFW homeowners pay twice as much as renters in 2025.

In early 2025, it's cheaper to rent a home in the Dallas-Fort Worth metro than it is to buy one. That's based on a series of reports published over the past year or so.

Even so, buying a home offers advantages you can't get from renting, such as the ability to build equity and customize your living space.

The 5 Key Points Covered in This Report

In a hurry? Here’s the overall gist of this report in five bullet points:

1. Renting is cheaper than buying in Dallas (2025). Renting remains significantly more affordable than buying a home in the Dallas-Fort Worth metro area, with buyers facing monthly costs nearly double those of renters on average.

2. Homeownership is more expensive. The average mortgage payment for a median-priced home in Dallas ranges from $2,200 to $2,400, far exceeding the average rent of $1,400 - $1,600.

3. Home price surge made buying more expensive. The pandemic-era surge in demand for homes, coupled with increased migration to Texas, led to skyrocketing home prices in Dallas, making homeownership less financially accessible.

4. DFW rent prices dropped last year. Dallas rental prices dropped by 4.1% in 2024, driven by increased multifamily housing construction, offering relief to renters in 2025.

5. Buying still has its advantages. While renting offers affordability and flexibility, buying provides advantages like equity growth, stability, customization, and long-term investment potential.

Dallas Home Price Surge Changed the Dynamic

The pandemic-fueled home buying surge of 2020 to 2021 depleted inventory levels and drove up home prices like never before.

The work-from-home revolution gave many people a newfound ability to relocate away from expensive housing markets to more affordable ones—such as Texas.

During those years, Dallas and other Texas metros received a steady influx of new residents moving from other states.

The graph below shows how this sharp increase in buyer demand also led to a sharp increase in home prices. Notice how the trend line for the median home value nearly went vertical. It was an unprecedented rate of home-price appreciation.

This is the main reason why it's currently so much more expensive to buy a home in the Dallas area than it is to rent one.

Buying More Expensive Than Renting in 2025

According to a 2024 report from Dallas ABC affiliate WFAA:

“The extra monthly costs associated with buying a home instead of renting won't fall back to pre-pandemic levels until the end of 2028 ... That's according to a March analysis by real estate giant CBRE Group Inc., which calculated that it cost 115% more to buy than rent in Dallas at the end of 2023.”

Granted, the numbers have changed since then, but the overall dynamic remains in place. As of early 2025, the monthly costs for buying and owning a home in the DFW area are still significantly higher than renting a similar property—on average.

Report Shows DFW Rent Prices Dropped in 2024

In January 2025, Realtor.com published a report with rental data for the nation's 50 largest metro areas, including the Dallas-Fort Worth-Arlington metro area.

Nationwide, rents declined in December 2024 for the 17th month in a row, falling by 1.1% year over year to a median of $1,695.

The Dallas area experienced an even bigger decline, with the average rent falling by 4.1% during 2024 to a median of $1,445. That's good news for those who will be renting in 2025.

Multifamily construction had a lot to do with the decline in DFW rental prices.

According to Danielle Hale, the company's chief economist:

"We are reaping the benefits of the multi-family surge in housing starts that lasted throughout 2023, but as starts and completions slow we anticipate seeing more balance in the rental market ahead."

Average Monthly Mortgage Payment in Dallas

Depending on what source you look at, the average monthly rent in the Dallas-Fort Worth area is somewhere between $1,400 and $1,600 in early 2025.

But what about mortgage payments?

If we use the current median home value for the DFW metro area, along with a typical down payment of 10%, we can estimate the average monthly mortgage payment.

Here's what that calculation looks like:

For a standard 30-year fixed mortgage, what would the monthly payments be (estimated) based on the following parameters:

• Median home value: $368,397

• 10% down payment: $36,839

• Mortgage loan amount: $331,558

• Average mortgage rate in January: 6.96%

• Monthly payment: $2,200 - $2,400*

* The monthly payment would vary due to taxes, insurance, etc.

Based on this calculation (and the sources cited earlier), a typical home buyer in the Dallas area might pay twice as much as the average renter, in terms of their monthly costs.

Homeownership Benefits Go Beyond the Cost

Renting a home in Dallas is cheaper than buying. We've covered that much.

But for many DFW residents, there are other considerations that can influence this kind of decision, beyond the simple cost differences.

Buying a home offers benefits you can't get from renting. Equity growth is the most obvious distinction, but there are others as well.

Here are some of the benefits of buying and renting a home:

Benefits of Buying a Home

• Equity growth: Each mortgage payment builds ownership in the property.

• Stability: Fixed mortgage payments ensure predictable housing costs over time.

• Customization: Freedom to renovate or modify the home to fit your needs.

• Long-term investment: Potential for the property to appreciate in value over time.

• Tax benefits: Mortgage interest and property taxes may be deductible.

• Sense of permanence: Provides a stable environment for families.

Benefits of Renting a Home

• Easier entry: No large down payment or closing costs required.

• Flexibility: Easier to move or relocate without selling a property.

• Low maintenance: Maintenance and repairs typically handled by landlord.

• Amenities: Many rental properties include perks like pools, gyms, or security.

• Easier exit: You can leave a rental just by giving notice, without having to sell.

For most residents, renting a home in Dallas will continue to be the cheaper option for the rest of 2025 and beyond. But buyers can enjoy certain perks that renters miss out on.

Ultimately, you have to choose the housing option that works best for your budget, your lifestyle, and your long-term financial goals.

Disclaimer: This report uses averages, median prices, and other data relating to "typical" buying and renting scenarios. But those examples might not apply to your specific situation, so additional research is warranted.