Dallas topped the list of residential real estate investor interest in 2025, as the local housing market benefited from strong population growth and rising rental demand. Chief economist Tom Malone at Cotality explained that Dallas is one of the fastest-growing major cities in the United States, making it a magnet for real estate investors.
He noted that the city’s significant population growth is creating new opportunities, stating that investors are entering the market in anticipation of a growing renter base.
In the previous year, Dallas ranked first in investment activity across the United States. The city recorded nearly 46,000 investor purchases compared with 86,000 purchases by non-investors, outperforming all other U.S. cities in both categories.
Cities such as Houston, Atlanta, Phoenix, and New York ranked slightly behind Dallas. Nevertheless, Dallas placed 16th nationwide in terms of the share of investor purchases relative to traditional homebuyers.
Population growth has been the primary driver behind increasing investor activity in Dallas and Houston, as strong rental demand continues to fuel market momentum. According to data from the U.S. Census Bureau, Dallas’ population was estimated at approximately 1.32 million in 2024, up significantly from around 1.2 million in 2010.
Malone added that population growth naturally leads to higher demand for rental housing. He also noted that rising home prices have pushed more individuals toward renting, encouraging investors to enter the market to meet this expanding demand.
Meanwhile, Daniel Oney, research director at the Real Estate Research Center at Texas A&M University, explained that the investor base active in the market includes both large institutional players and local individuals who invest by purchasing and renting properties within their communities.
Oney pointed out that accurately estimating investor purchase figures can be challenging due to variations in how transactions are recorded. In some cases, companies register purchases under subsidiaries or newly formed legal entities, which can result in incomplete data.
He concluded that Dallas, supported by its rapid economic and population growth, continues to attract investors seeking markets with job creation and demographic expansion that enable stronger rental opportunities and potentially higher rental yields.
