Dallas vs Houston
Sun Belt real estate market comparison · Data to Sep 2026 · analysis written Oct 2026
While Dallas-Fort Worth pays higher wages, with a $92,733 median household income and 4.6% unemployment in July 2026, Houston costs about 4% less overall and its two-bedroom Fair Market Rent runs $358 a month lower.
Key numbers
Sourced, dated figures for Dallas-Fort Worth and Houston — cite freely.
- Cost of living
- Dallas-Fort Worth
- 103.1
- Houston
- 98.6
- Houston about 4% cheaper
- BEA Regional Price Parities, 2024 · price level, US = 100
- State income tax
- Dallas-Fort Worth
- None
- Houston
- None
- Both in Texas
- Texas Comptroller of Public Accounts, 2026 tax year
- Property tax
- Dallas-Fort Worth
- 1.44%
- Houston
- 1.45%
- Census ACS 1-year estimates, 2024 · effective rate: median tax paid ÷ median home value, metro area
- 2BR rent
- Dallas-Fort Worth
- $1,807/mo
- Houston
- $1,497/mo
- HUD Fair Market Rent, FY2027
- Population
- Dallas-Fort Worth
- 8,477,157
- +1.48% YoY
- Houston
- 7,904,627
- +1.63% YoY
- Census Population Estimates, 2025
- Home price change
- Dallas-Fort Worth
- +0.5% YoY
- Houston
- +3.4% YoY
- FHFA House Price Index, Q2 2026 · Dallas-Fort Worth: Dallas-Plano-Irving division
Compare two markets
- Market A
Dallas-Fort Worth, TX
North Texas powerhouse balancing a deep, diversified job base with one of the Sun Belt's biggest construction pipelines
$1,807/mo+0.5% Dallas div. HPI YoY2BR Fair Market Rent · HUD FY2027 FHFA HPI 426.4 (Dallas-Plano-Irving, Q2 2026)
Full Dallas-Fort Worth market profile - Market B
Houston, TX
Energy capital with one of the most affordable price points in major Sun Belt metros
$1,497/mo+3.4% HPI YoY2BR Fair Market Rent · HUD FY2027 FHFA HPI 414.2 (Houston-The Woodlands-Sugar Land, Q2 2026)
Full Houston market profile
The Verdict: Dallas-Fort Worth vs Houston
Choose Dallas-Fort Worth
Choose Dallas-Fort Worth if you're chasing income and job depth: median household income is $92,733 against $81,417 in Houston, and July 2026 unemployment was 4.6% versus 5.1%. You'll accept higher rent ($1,931 for a two-bedroom) and a car-dependent sprawl, with 234 sunny days.
Choose Houston
Choose Houston if you want to stretch a budget: two-bedroom Fair Market Rent is $1,573 a month, the BEA price level is 98.6 against 103.1, and the median home value is $327,400 versus $389,500. You'll also get firmer price momentum, with the FHFA index up 3.4% year over year as of Q2 2026, and you can live with a 31.1-minute average commute and a flood and insurance overhang.
The Deciding Factor
Housing cost decides it: with no state income tax and property tax rates level at 1.44% and 1.45% effective, Houston's two-bedroom Fair Market Rent is $358 a month below Dallas-Fort Worth's.
Market Stats Comparison
| Metric | Dallas-Fort Worth | Buyer-favourable indicator | Houston |
|---|---|---|---|
| HPI YoY change | +0.5% (Dallas div.) | +3.4% | |
| HPI QoQ change | -0.3% (Dallas div.) | +0.8% | |
| HPI index value | 426.4 (Dallas div.) | 414.2 | |
| Monthly building permits | 5,115 | 3,651 | |
| Permits YoY change | -7.0% | -28.7% | |
| Unemployment rate | 4.1% | 4.6% | |
| Population (2025 est.) | 8,477,157 | 7,904,627 | |
| Population growth YoY | +1.48% | +1.63% | |
| 2BR Fair Market Rent | $1,807 | $1,497 |
HPI YoY change
HPI QoQ change
HPI index value
Monthly building permits
Permits YoY change
Unemployment rate
Population (2025 est.)
Population growth YoY
2BR Fair Market Rent
City Fundamentals
Demographics, taxes & livability
| Category | Dallas-Fort Worth | Houston |
|---|---|---|
| Population Growth | +11.0% (2020–2024, Census Bureau est.) | +11.7% (2019–2024, avg. ~2.3%/yr) |
| Median Household Income | $92,733 (Census ACS 2024 1-year, metro area) | $81,417 (Census ACS 2024 1-year, metro area) |
| Cost of Living | 103.1 (price level, US = 100; BEA Regional Price Parities, 2024) | 98.6 (price level, US = 100; BEA Regional Price Parities, 2024) |
| Unemployment Rate | 4.1% (BLS, Sep 2026) | 4.6% (BLS, Sep 2026) |
| State Income Tax | None (Texas levies no state income tax on wages; 2026) | None (Texas levies no state income tax on wages; 2026) |
| Property Tax Rate | 1.44% effective (median tax paid $5,616 ÷ median home value $389,500; Census ACS 2024 1-year, metro area) | 1.45% effective (median tax paid $4,750 ÷ median home value $327,400; Census ACS 2024 1-year, metro area) |
| Major Employers |
|
|
| Avg Commute | 28.8 min (one-way average, ACS 2024) | 31.1 min (one-way average, ACS 2024 MSA) |
| Sunny Days / Year | ~234 days per year (Dallas; US avg = 205) | 204 days per year (Houston averages ~204 sunny days; ~99 partly cloudy) |
| Avg Summer High | 96°F (July–August average high, NOAA 1991–2020 normals) | 94°F (July average high) |
| Walkability | 46 (car-dependent; sprawling suburban metro) | 48 (car-dependent; city-core neighborhoods score higher) |
👥 Population Growth
Dallas-Fort Worth
+11.0% (2020–2024, Census Bureau est.)Houston
+11.7% (2019–2024, avg. ~2.3%/yr)💰 Median Household Income
Dallas-Fort Worth
$92,733 (Census ACS 2024 1-year, metro area)Houston
$81,417 (Census ACS 2024 1-year, metro area)🛒 Cost of Living
Dallas-Fort Worth
103.1 (price level, US = 100; BEA Regional Price Parities, 2024)Houston
98.6 (price level, US = 100; BEA Regional Price Parities, 2024)📊 Unemployment Rate
Dallas-Fort Worth
4.1% (BLS, Sep 2026)Houston
4.6% (BLS, Sep 2026)🏛️ State Income Tax
Dallas-Fort Worth
None (Texas levies no state income tax on wages; 2026)Houston
None (Texas levies no state income tax on wages; 2026)🏠 Property Tax Rate
Dallas-Fort Worth
1.44% effective (median tax paid $5,616 ÷ median home value $389,500; Census ACS 2024 1-year, metro area)Houston
1.45% effective (median tax paid $4,750 ÷ median home value $327,400; Census ACS 2024 1-year, metro area)🏢 Major Employers
Dallas-Fort Worth
- AT&T, American Airlines, Lockheed Martin (telecom, aviation & defense)
- Toyota, Texas Instruments, Dell Technologies (auto & tech)
- Baylor Scott & White, Tenet Healthcare (healthcare)
- Southwest Airlines, BNSF Railway, ExxonMobil (logistics & energy)
Houston
- Energy sector (ExxonMobil, Chevron, Shell, ConocoPhillips — 26 Fortune 500 HQs)
- Texas Medical Center (Houston Methodist, MD Anderson, Memorial Hermann)
- Port of Houston / Logistics & Trade
- NASA Johnson Space Center / Aerospace & Defense
🚗 Avg Commute
Dallas-Fort Worth
28.8 min (one-way average, ACS 2024)Houston
31.1 min (one-way average, ACS 2024 MSA)☀️ Sunny Days / Year
Dallas-Fort Worth
~234 days per year (Dallas; US avg = 205)Houston
204 days per year (Houston averages ~204 sunny days; ~99 partly cloudy)🌡️ Avg Summer High
Dallas-Fort Worth
96°F (July–August average high, NOAA 1991–2020 normals)Houston
94°F (July average high)🚶 Walkability
Dallas-Fort Worth
46 (car-dependent; sprawling suburban metro)Houston
48 (car-dependent; city-core neighborhoods score higher)Income, cost of living and property tax: Census ACS 1-year and BEA Regional Price Parities — property tax is the effective rate (median tax paid ÷ median home value), the same measure for every metro. State income tax: current statutory rate. Unemployment: BLS. Population, employers, commute, climate and walkability were researched via AI at generation time — estimates; verify with official sources before making financial decisions.
What property tax and insurance do to a monthly payment in Dallas-Fort Worth and Houston: our mortgage guide puts first-year numbers on all 12 metros
AI Analysis: Dallas-Fort Worth vs Houston
Generated October 2026 · SunBeltPulse Research
Key Takeaways
- Houston's FHFA index rose 3.4% year over year as of Q2 2026, while the Dallas-Plano-Irving division rose 0.5% and the Fort Worth-Arlington-Grapevine division 0.7%.
- Dallas-Fort Worth permits fell 10.5% year over year to 4,675 in July 2026, while Houston's were flat at 5,773.
- Unemployment is higher in Houston (5.1%) than in Dallas-Fort Worth (4.6%) as of July 2026, and both rose from July 2025.
- Houston's two-bedroom Fair Market Rent is $358 a month lower ($1,573 versus $1,931) and its BEA price level is about 4% lower.
- Neither metro has a state income tax, and effective property tax rates are essentially level at 1.44% and 1.45%, though Dallas-Fort Worth's higher home values mean a larger typical tax bill.
Home-Price Appreciation: Houston Pulling Ahead
Houston's FHFA index rose 3.4% year over year and 0.8% quarter over quarter as of Q2 2026. Dallas-Fort Worth has no metro-wide FHFA figure because FHFA publishes it as two divisions. As of Q2 2026, the Dallas-Plano-Irving division's index rose 0.5% year over year and fell 0.3% quarter over quarter, while the Fort Worth-Arlington-Grapevine division's index rose 0.7% year over year and 0.1% quarter over quarter. The history fits the market narrative: the Dallas-area divisions have been close to flat since the 2022 peak and early 2023 recovery, while Houston's index has kept climbing. Both markets are still digesting elevated inventory, but Houston is currently showing the firmer price trend.
Construction Activity: Permits Diverge
Houston recorded 5,773 building permits in July 2026, flat (0.0%) against July 2025. Dallas-Fort Worth recorded 4,675 permits in July 2026, down 10.5% from July 2025. Monthly permit counts are noisy, since Dallas-Fort Worth swung from 4,438 in January 2026 to 7,650 in February 2026, so one month is only a snapshot. Even so, the recent run of Dallas-Fort Worth readings, roughly 4,400 to 5,200 outside February, points to cooling builder activity, which could ease the supply pressure the narrative describes in the suburbs. Houston's permits have stayed in a similar band.
Labor Market and Incomes
Unemployment was 4.6% in Dallas-Fort Worth in July 2026 (not seasonally adjusted), up from 4.2% in July 2025. Houston's was 5.1% in July 2026, up from 4.8% in July 2025. Both metros have drifted higher over the year, and Houston's rate is 0.5 points above Dallas-Fort Worth's. Median household income, from the ACS 2024 1-year estimates, is $92,733 in Dallas-Fort Worth versus $81,417 in Houston. Both metros are anchored by diverse employers: telecom, aviation, defense and logistics in Dallas-Fort Worth, and energy, the Texas Medical Center, the port and aerospace in Houston. Population growth is similar, at +1.48% in Dallas-Fort Worth and +1.63% in Houston (2025 Census estimates), and the two metros are similar in size.
Rents, Cost of Living and Taxes
HUD's FY2026 two-bedroom Fair Market Rent is $1,931 a month in Dallas-Fort Worth versus $1,573 in Houston, a gap of $358 a month. The BEA price level (2024, US = 100) is 103.1 in Dallas-Fort Worth and 98.6 in Houston, making Houston about 4% cheaper overall. Texas levies no state income tax on wages, so neither metro has an edge there. ACS 2024 effective property tax rates are 1.44% in Dallas-Fort Worth and 1.45% in Houston, effectively level. In dollars, median tax paid is $5,616 in Dallas-Fort Worth versus $4,750 in Houston, which reflects Dallas-Fort Worth's higher median home value ($389,500 versus $327,400) rather than a higher rate. Houston's lower costs come with a longer average commute (31.1 minutes versus 28.8) and the flood and insurance overhang noted in its market narrative.
Moving from Dallas to Houston (or the reverse)
The same numbers cut both ways. Here is what actually changes on the move, from sourced public data.
Rent. A 2-bedroom Fair Market Rent runs $310/mo (20.7%) higher in Dallas than in Houston: $1,807 in Dallas vs $1,497 in Houston (HUD, FY2027).
Property tax. Effective property-tax rates are effectively level: Dallas 1.44% vs Houston 1.45% (Census ACS 2024: median tax paid ÷ median home value).
Income tax. Both metros are in Texas, which levies no state income tax — a move in either direction changes nothing here.
Cost of living. Houston is about 4% cheaper overall: Dallas 103.1 vs Houston 98.6 (BEA Regional Price Parities 2024, US = 100).
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