Unveiled during the highly anticipated Fall Meeting in Las Vegas, the “Emerging Trends in Real Estate®” report positions Dallas-Fort Worth as the top market to watch in 2025.

In a pivotal moment for the real estate industry, PwC and the Urban Land Institute (ULI) Americas have released the 46th edition of their influential report, Emerging Trends in Real Estate® 2025. During the Fall Meeting in Las Vegas, the report highlighted Dallas-Fort Worth as the leading market to watch in the coming year, driven by signals of recovery in capital markets and anticipated reductions in interest rates poised to boost real estate transactions.

Angela Cain, ULI Global CEO, commented, “In 2025, we expect lower interest rates will reduce borrowing costs, aid in price discovery, and ultimately encourage an uptick in CRE transactions.” This cautious optimism is buoyed by early signs of capital markets recovery, indicating a positive trend for the industry.

Andrew Alperstein from PwC’s US real estate practice noted the growing optimism within the industry. He emphasized the importance of firms focusing on managing short-term risks and adjusting their growth strategies to leverage the ongoing recovery.

Emerging Trends in Real Estate® 2025 Top Markets

The report annually lists the top 10 real estate markets to watch. For 2025, these include:

1. Dallas-Fort Worth
2. Miami
3. Houston
4. Tampa – St. Petersburg
5. Nashville
6. Orlando
7. Atlanta
8. Boston
9. Salt Lake City
10. Phoenix

Notable Trends in the 2025 Report

Industry leaders are more confident than a year ago but remain cautious. Stability has returned to property markets, and investors are addressing cyclical issues like oversupply. The demand for data centers is soaring due to the growth of artificial intelligence and other emerging technologies.

Multifamily housing may face a supply glut in high-growth areas, but demand is expected to remain strong due to job growth and favorable demographics. The multifamily market will need to address the increasing number of cost-burdened renters.

Climate change poses a significant challenge, with higher insurance costs affecting CRE and housing markets. Real estate firms are incorporating climate risk into their decision-making processes.

Data centers continue to dominate the real estate market, driven by increasing demand for cloud storage and AI. This demand is leading to rapid growth and rising rents in major data center markets.

Explore the full Emerging Trends in Real Estate® 2025 report via a new, interactive experience.

For more information, visit PwC’s official release. Related articles include PwC’s recognition as a top company on LinkedIn and TIME Magazine’s list of best companies for future leaders.