Dallas vs Raleigh

**Home-Price Appreciation** Both markets are in low single-digit appreciation territory as of Q2 2026, but Raleigh is outpacing Dallas-Fort Worth. The FHFA HPI for Raleigh-Cary shows +1.1% year-over-year and -0.1% quarter-over-quarter as of Q2 2026 — modest but positive momentum. Dallas is split between its two FHFA divisions: Dallas-Plano-Irving gained just +0.5% year-over-year with a -0.3% quarterly dip, while Fort Worth-Arlington-Grapevine posted +0.7% year-over-year and +0.1% quarter-over-quarter, both as of Q2 2026. The DFW market absorbed a sharper run-up during 2021–2022 and has since plateaued, with both divisions showing index levels only marginally above their 2022 peaks as supply has built up in suburban Collin, Denton, and Tarrant counties. Raleigh also corrected post-2022 but has shown somewhat steadier, if still subdued, year-over-year gains. Neither market is delivering the aggressive appreciation of the pandemic era.

**Construction and Population** Dallas-Fort Worth remains the heavier construction engine in absolute terms — 4,675 permits were issued in July 2026, compared with 1,538 in Raleigh that same month — but both metros are pulling back. DFW's July 2026 pace was down 10.5% versus July 2025 (Census BPS), while Raleigh's fell a steeper 17% over the same comparison. The supply overhang in DFW partly explains why price appreciation there has been so muted despite strong population growth of +1.48% year-over-year (2025 Census estimate). Raleigh's population is growing even faster at +2.36% year-over-year (2025 Census estimate) against a smaller permit base, which could tighten its supply-demand balance more quickly if permit volumes stay compressed.

**Labor Markets and Rental Costs** Raleigh's labor market is meaningfully tighter. Its unemployment rate was 3.2% in July 2026 (BLS LAUS, not seasonally adjusted), down from 3.4% a year earlier in July 2025 — an improving trend. DFW's rate was 4.6% in July 2026, up from 4.2% a year earlier in July 2025, signaling some labor-market softening in the larger metro. Raleigh's median household income was $102,144 (ACS 2024) versus DFW's $92,733 (ACS 2024), a roughly $9,400 gap. For renters, DFW is slightly more expensive: the HUD FY2026 two-bedroom Fair Market Rent is $1,931/month in Dallas-Fort Worth versus $1,750/month in Raleigh — a $181/month difference.

**Cost of Living and Taxes** Raleigh is about 5% cheaper on overall cost of living, with a BEA Regional Price Parity index of 98.2 (US = 100, 2024) versus DFW's 103.1. The tax picture is more nuanced. Texas levies no state income tax on wages (2026 tax year), while North Carolina charges a flat 3.99% state income tax (2026 tax year) — a real ongoing cost advantage for DFW earners. However, DFW's property taxes are substantially higher: the effective rate is 1.44% versus Raleigh's 0.66% (both ACS 2024 effective rates on the same basis). On a $400,000 home, that 0.78-percentage-point gap translates to roughly $3,120 more per year in DFW. Buyers must weigh the absence of Texas income tax against that recurring property-tax premium, particularly at higher income levels where North Carolina's flat 3.99% rate on wages may cost less than DFW's annual property-tax difference.