Is Dallas Still Affordable in 2026? What $500K Actually Buys You Right Now

Over the past decade, Dallas has gone from one of the more affordable big U.S. cities to a market that’s challenging buyers—but not impossible. So what’s the reality in 2026, and can a $500,000 budget still get you a solid home in this booming metro?

The Dallas Market Today: Balanced but Not Cheap

The Dallas housing market in late 2025 and early 2026 isn’t roaring like the pandemic years, but it also hasn’t collapsed. After years of brisk price growth and fierce competition, recent data points to price moderation and more choices for buyers:

• Median home prices in Dallas are around the national average, much lower than pricey coastal markets, though that average shifts depending on the source and neighborhood. One estimate lists the median sale price near $430,000 as of December 2025.

• Realtor.com data shows median home prices closer to $400,000, with notable variation between neighborhoods.

• Zillow’s index suggests average home values closer to $300,000 (with a median sale price around $424,667) as of late 2025.

In short: Dallas isn’t cheap, but it’s also not as out of reach as super-high-cost metros like San Francisco or New York. While affordability has worsened over time, it’s improving relative to recent peaks due to softening prices and more listings.

📈 Market Trend Chart — Price Growth & Cooling

This chart is great for a “Reality check” or trend comparison section — showing how home values moved over recent years and where prices are now.

What these visuals communicate:

• Dallas price trend over time — historic spike and later stabilization.

• Comparative home value change among top metros (Dallas price growth vs others).

• Recent market indicator chart showing activity data or median price changes.

Affordability Trends: Why It Still Feels Tight

A few forces are shaping how affordable Dallas feels right now:

• More inventory means buyers have choices. Listings have increased compared to recent years, giving house hunters a bit more bargaining room.

• Prices have cooled or even dipped slightly. Some analyses show year-over-year declines in median prices, suggesting a buyer’s market emerging.

• Mortgage rates are still a factor. Though rates have eased from prior peaks, borrowing costs are higher than the ultra-low rates of early pandemic years, which still squeezes affordability.

  
  

But even with a more balanced market, most buyers still need higher incomes and bigger down payments to comfortably afford a home than they did just a few years ago.

So, What Does $500,000 Actually Get You in Dallas?

Here’s the fun part—because a $500K budget in Dallas still goes further than in many large U.S. cities:

Single-Family Homes

With $500,000, you can often find:

• Comfortable 3-4 bedroom suburban homes with yards—not just cookie-cutter builds but genuinely livable family houses.

• Properties in middle-ring neighborhoods that are commutable to downtown Dallas, like parts of Cedar Crest, Casa View, or even some Lake Highlands areas.

• Updated homes with modern kitchens and outdoor spaces in emerging neighborhoods where affordability still holds.

Townhouses and Condos

In established or trendy areas like Uptown, East Dallas, or Oak Lawn:

• You might find newer condos or townhomes with 2–3 bedrooms, likely updated and on smaller lots.

• These can be great for buyers who want urban access without the single-family price tag.

Neighborhood Variance Is Huge

Dallas is vast, and $500K looks different depending on where you roam:

• More affordable pockets (South Dallas, Cedar Crest, Southeast Dallas) offer single-family options with room and yard space.

• Pricey nodes like North Dallas, East Dallas, or markets near top schools can push that budget toward smaller homes or require creative financing/negotiation.

Bottom Line: Affordable Is Relative

So, is Dallas still affordable in 2026? The honest answer is:

✔️ Relatively, yes — especially compared to coastal tech hubs or major Californian metros. ❌ Absolutely for everyone? Not quite. First-time buyers still face tight income requirements and competition in desirable areas.

What $500,000 buys today is real space, good value, and options—but knowing your target neighborhood matters. Smart buyers are watching inventory, checking recent sales, and being ready to move when the right home surfaces.