Texas Real Estate in 2025: More Homes, Growing Demand & What It Means for You

Everything’s bigger in Texas—including the demand for housing. With record population growth, evolving homeownership trends, and major redevelopment projects, the Lone Star State continues to be a powerhouse in real estate.

Homeownership Trends: Where Does Dallas Stand?

Homeownership in the U.S. sits at 65.2%, rebounding from a low of 62.9% in 2016. In Texas, 62.6% of residents own their homes, but Dallas lags behind at just 41.9%—lower than Houston (42.4%) and Austin (43.5%).

Why the gap? Rapid growth, rising home prices, and shifting urban landscapes have all played a role. However, lower mortgage rates and an increase in housing inventory could change the game in 2024.

Dallas Development—From Malls to Mixed-Use Communities

The trend of converting underutilized spaces into vibrant residential hubs is taking off across North Texas. The latest? The Shops at Willow Bend in Plano is getting a major facelift.

30% of the mall will be demolished to make way for 1,000 residential units.
A seven-story office tower, high-rise hotel, retail, and dining options will bring new energy to the space.
Rebranded as “The Bend”, this three-year redevelopment project starts later this year.

For anyone keeping an eye on North Texas’ commercial-to-residential conversions, this is a major one to watch.

Texas Leads the Nation in Homebuilding—And Homes Are Getting Smaller

Texas ranked #1 in the U.S. for permitted housing units last year, accounting for 15% of all new homes nationwide—well above its 9% share of the U.S. population.

But here’s the interesting part: New homes in Texas are getting smaller and more affordable.

The median square footage of new homes in Texas dropped 5.3% from 2020, a sharper decline than the national 3.6% decrease.
More homes under $350,000 are hitting the market, while high-end new builds ($750K+) are decreasing.
As mortgage rates fall, home affordability is improving, and inventory levels are climbing back to pre-pandemic levels.

This is exactly what the market needs—more attainable homes for first-time buyers and middle-income families.

DFW Real Estate Market: What’s Happening with Rates & Prices?

The average 30-year mortgage rate has dipped for six consecutive weeks, now sitting at 6.76%—down from 6.94% last year.

The National Association of Realtors predicts rates will drop below 6% by year’s end.
Existing home sales jumped 2% last month, a sign that buyers are stepping back into the market.
Median home prices nationwide rose 4.8% year-over-year, hitting nearly $397,000.

For buyers waiting on the sidelines, this could be the window of opportunity to get into the market before prices climb further.

Neiman Marcus Drama: Is the Downtown Flagship Staying or Going?

It’s been a rollercoaster ride for Neiman Marcus’ downtown Dallas store. After failing to reach a lease agreement, the iconic luxury retailer announced its Main Street location would close after 100+ years.

However, Dallas city and business leaders stepped in, working out a potential deal to keep Neiman Marcus downtown.

Saks Global, the new parent company, still plans to shut it down by the end of March.
A $100 million renovation at NorthPark Center’s Neiman Marcus location is already in the works.

Regardless of the outcome, Dallas’ retail and luxury market is evolving, with high-end brands rethinking their footprint in the city.

Celebrity Real Estate—What’s Next for Michael Jordan’s Former Mansion?

Even when you’re one of the greatest basketball players of all time, selling a 37,000-square-foot mansion isn’t easy.

Michael Jordan’s Highland Park estate originally hit the market in 2012 for $29 million.
It finally sold last year for just $9.5 million, a huge markdown.
The new owner, a real estate investor, plans to market the estate as a timeshare—$1 million for a weeklong stay each year or $230,000/month for a rental.

New owner, same story—so far, we’ve heard of no takers.

The Bottom Line: Where Do You Fit in the Market?

Texas is growing fast, building more, and creating new opportunities—but the market is shifting.

If you’re thinking about buying, now’s the time to watch inventory closely and have a realtor with access to off market properties. Last year our firm sold over $1bn off market in 2024.
If you’re selling, homes that are move-in ready—with no needed repairs and all major systems in great shape—are selling quickly and closer to asking price or better, as buyers prioritize turnkey properties in this competitive market.
If you’re investing, North Texas remains one of the best real estate markets in the country.

As always, I’m here to help navigate this market with you. Let’s chat about what 2025 has in store for your real estate goals!