Zillow Predicts Modest Price Growth for Dallas in 2025
They expect the median price to rise by a modest 1% during 2025.
Home prices in many Texas housing markets remained flat over the past year, and a recent forecast published by Zillow suggests little to no price growth in 2025.
Austin is the notable exception. Zillow expects that market to depreciate further.
As for the Dallas area, Zillow predicted a 1% home price increase during 2025.
Zillow Ranks the Hottest Markets of 2025
Zillow's report mainly focused on what they believe will be the hottest housing markets of 2025, with Buffalo, NY at the top of this list. But it also provided home-price forecasts for the nation's 50 most populous metro areas, including four in Texas.
Here are some of the national highlights from this recent report:
Buffalo retains its top spot as the hottest U.S. housing market, driven by strong demand and limited inventory.
Job growth outpaces home construction, with two new jobs created for every home built.
Buffalo's home values are projected to rise by 2.8% in 2025, following a 5.7% increase in 2024.
Relative affordability and strong job markets also boost demand in other top-ranking metros like Indianapolis, Providence, and Hartford.
High mortgage rates (averaging 6.91%) limit inventory nationwide as homeowners stay put, intensifying competition in affordable markets.
Forecasts for Dallas and Other Texas Metros
Here are Zillow's home price forecasts for the four largest Texas metros in 2025:
Austin: -0.4%
Dallas: +1.0%
Houston: 0.6%
San Antonio: +0.3%
As we wrote in previous newsletters, home prices in many Texas cities either remained flat or dipped slightly during 2024, due to a cooling market.
So this prediction suggests that we could see more of the same over the coming months, with Texas home prices rising by only a small amount. The good news is that this could give wage growth a chance to "catch up" with home prices, improving affordability across the state.
According to Zillow chief economist Skylar Olsen:
"Shoppers nationwide should see more options for sale than in recent years, along with slow and steady price growth. That's the good news. But both buyers and sellers should expect unpredictable mortgage rates."