DFW Housing Market Update | Dallas Home Prices & Trends | October 2025

October 2025 DFW Housing Market Update Home Prices and Trends
Dallas–Fort Worth home prices dip further as inventory hits decade highs. Explore 2025 DFW housing trends, affordability, and county-by-county data.

Overview

After years of historically tight supply, the Dallas–Fort Worth housing market is entering a new phase—one defined by growing inventory, slower price growth, and shifting leverage between buyers and sellers. Recent data show the region’s available housing supply reaching its highest level in more than a decade, a development that reflects both cooling demand and increased listings across North Texas. While affordability remains a major constraint, these changes signal a rebalancing market—offering prospective buyers more options and sellers a clearer need to price strategically in a more competitive landscape.

DFW Housing Market Sees Highest Inventory in Over a Decade

The Dallas–Fort Worth housing market is experiencing its highest level of available inventory since the early 2010s—signaling a meaningful shift in market conditions after years of constrained supply.

According to recent data from the Texas Real Estate Research Center at Texas A&M, the region recorded 4.7 months of housing inventory in August, up nearly 18% from 4 months last year. The last time inventory climbed to a comparable level was June 2012, when it hit 4.97 months in the wake of the 2008 financial crisis.

Affordability Challenges Continue to Rise

At the same time, affordability pressures remain significant. Homebuyers in Dallas–Fort Worth now need to earn roughly 48% more than they did six years ago to purchase a median-priced home, according to a recent Realtor.com analysis comparing home prices and household income growth.

Nationally, buyers must now make about $114,000 annually to afford a typical home, according to a study by Realtor.com—up sharply from $67,000 in 2019, representing a 70% increase in required income over just six years. In North Texas, the income threshold sits just below that mark, at approximately $113,668.

Prices and Market Activity

The median listing price across DFW currently stands at $390,125, a decline of 2.47% year over year and down from $400,000 in 2024, according to the August Housing report by Texas A&M Research Center.

More homes are staying listed for longer, prompting many sellers to reduce prices to attract offers. Zillow data shows that one in three (33%) Dallas-area listings in August had a price drop.

Additionally, in the first quarter of 2025, property returns averaged 29.7%, down from 39.2% a year earlier—an overall 9.4% decline, according to real estate analytics firm ATTOM.

Collectively, these trends point to a market in transition. While the DFW area remains one of the nation’s most resilient housing markets, the balance of power is gradually shifting toward buyers—offering more choices and, in some cases, better pricing opportunities than the region has seen in years.

Breakdown of Home Values & Data By County Across DFW

Median Home Prices are Down Year-over-Year in DFW

Median home prices are down across all Dallas counties, some by as much as 14% for resale homes that are not new construction. Here’s the breakdown.

  • Dallas County – Down 1.6% for all homes, $359,000; Down 17% for Resale Homes
  • Collin County – Down 6.1%, $449,990; Flat for Resale Homes Year-over-Year
  • Tarrant County – Down .2%, $345,000; Up 1.5% for Resale Homes
  • Rockwall County – Down 8.4%, $416,250; Down 14.4% for Resale Homes
  • Kaufman County –Down 2%, $299,000; Up 2.2% for Resale Homes
  • Denton County – Down 6.5%, $435,000; Down 4.3% for Resale Homes
 

To compare, home prices are actually down from their peaks by much greater margins. Here’s a historical look back at where home values peaked in the summer of 2022.

  • Dallas County – $395,000 – Down 9% since peak in 2022
  • Collin County – $575,000 – Down 22% since peak in 2022
  • Tarrant County – $376,000 – Down 8% since peak in 2022
  • Rockwall County – $465,000 – Down 11% since peak in 2022
  • Kaufman County – $371,000 – Down 15% since peak in 2022
  • Denton County – $500,000 – Down 13% since peak in 2022

Months Supply of Inventory is Up Year-over-Year (YoY)

For months supply of inventory, this is the gauge typically for whether we’re in a buyer’s market, seller’s market, or balanced market. Most of DFW is in a a balanced market right now moving toward a buyer’s market.

  • Dallas County – 4.8 Months; Up 9.1% YoY
  • Collin County – 4.7 Months; Up 20.5% YoY
  • Tarrant County – 3.9 Months; Up 2.6% YoY
  • Rockwall County – 6.4 Months; Up 6.7% YoY – Buyer’s Market
  • Kaufman County –5.4 Months; Up 1.9% YoY
  • Denton County – 4.6 Months; Up 17.9% YoY

Final Thoughts

Altogether, the DFW housing market’s latest data paint a picture of adjustment rather than decline. Inventory is rising, prices are stabilizing, and homes are spending longer on the market—all hallmarks of a region transitioning from an overheated seller’s environment toward a more balanced, even buyer-leaning market.

As mortgage rates, inflation, and local economic growth continue to shape 2025’s trajectory, the North Texas market appears to be normalizing after years of volatility—laying the groundwork for a healthier, more sustainable housing cycle ahead.

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