Housing Market Trends: Dallas vs. Houston

Dallas: A Thriving Housing Market

Dallas has experienced consistent home price appreciation, fueled by a strong job market and corporate relocations. Major companies like Toyota, State Farm, and Goldman Sachs have established headquarters or regional offices here, driving housing demand.

• Median Home Price (2024): ~$400,000
• Annual Home Price Growth: ~5-7%
• Competitive Market: High demand, but increasing inventory

Houston: A Market of Opportunity

Houston, on the other hand, has a more affordable housing market compared to Dallas. While it has a strong economy driven by the energy sector, medical industry, and tech growth, its home prices have remained relatively stable.

• Median Home Price (2024): ~$350,000
• Annual Home Price Growth: ~3-5%
• Competitive Market: High inventory, slightly slower appreciation

Winner: Dallas for price appreciation, Houston for affordability

Mortgage Origination Potential

For mortgage brokers, the potential to generate loan volume is critical. Both Dallas and Houston offer strong opportunities, but their differences matter.

Dallas: Higher Loan Amounts, Higher Commissions

Since Dallas has a higher median home price, mortgage brokers may benefit from larger loan amounts and higher commissions. The city’s rapid home appreciation also encourages refinancing opportunities.

Houston: Higher Loan Volume, Easier Entry

Houston’s affordability means more first-time homebuyers enter the market, creating a steady demand for mortgage services. A high inventory of available homes allows mortgage brokers to close more transactions, even if the individual loan amounts are lower.

Winner: Dallas for larger loans, Houston for more transactions

Competition Among Mortgage Brokers

Dallas: More Competition, But Premium Clients

Dallas has a well-established mortgage brokerage industry, making it more competitive. However, higher home values and a strong economy attract high-income buyers who may qualify for jumbo loans, leading to bigger commissions.

Houston: Less Competition, More Growth Potential

While Houston also has strong competition, it’s relatively easier for new mortgage brokers to enter the market. The city’s real estate cycles tend to be more stable, offering long-term business opportunities.

Winner: Houston for new brokers, Dallas for experienced brokers

Economic & Job Market Strength

Both cities have robust economies, but Dallas has seen faster job growth in technology, finance, and corporate headquarters relocations. Houston remains a global energy hub with a diverse economy, though it is somewhat tied to oil price fluctuations.

Dallas: Stronger job market diversification, attracting more high-earning professionals

Houston: Steady job growth, but oil volatility can impact mortgage demand

Winner: Dallas for long-term economic stability

Rental vs. Homeownership Trends

Both cities are seeing an increase in rental demand, but Dallas has a slightly higher percentage of renters. Houston’s affordability makes homeownership more accessible to a larger pool of buyers.

Dallas: Higher rents, making homeownership more attractive for buyers

Houston: More affordable entry point for first-time buyers

Winner: Houston for first-time buyers, Dallas for high-income buyers

Final Verdict: Which City is Better for Mortgage Brokers?

Choose Dallas if: You want higher loan amounts, work with high-income buyers, and are experienced in competitive markets.

Choose Houston if: You want steady loan volume, lower competition, and a market with strong first-time homebuyer activity.

Ultimately, both Dallas and Houston offer excellent opportunities for mortgage brokers. The choice depends on your target clients, business strategy, and willingness to compete in a dynamic Texas real estate market.

Would you like insights on how to establish your mortgage brokerage in either city? Let us know!