Dallas has been ranked as one of the most affordable major metropolitan areas in the United States for homebuyers, according to a new study by real estate data company Clever. But the finding comes as city leaders and housing advocates continue to warn that Dallas is facing a serious housing affordability crisis.

Dallas Lands in Top 10 for Homebuying Affordability

Clever’s report placed the Dallas area seventh among major U.S. metros for homebuying affordability. The ranking was based largely on home prices compared with local household incomes.

According to the study, Dallas has a median home price of $366,600 and a median household income of $92,733. That gives the region a home-price-to-income ratio of 3.95.

The report said Dallas and Atlanta remain relatively affordable among fast-growing Sun Belt metros, partly because both areas have fewer land-use restrictions and more room for new housing development.

Affordability Depends on the Definition

While Dallas ranked well compared with other large metros, the study also showed that homeownership remains difficult for many buyers. Clever noted that none of the 50 most populous U.S. metros has reached the commonly recommended home-price-to-income ratio of 2.6 or lower.

That means Dallas may be more affordable than some other major cities, but it does not necessarily mean homes are affordable for average residents.

The broader national picture is also troubling. Clever found that since 1980, U.S. home prices have climbed 551%, while household incomes have grown by 373%. If income growth had matched housing costs, the median American household would earn $115,224 today. Instead, the actual median household income is $83,730, leaving a gap of more than $31,000.

North Texas Housing Costs Continue to Rise

The Dallas housing market has changed significantly over the past decade and a half. Reports have pointed to the 2008 financial crisis as a turning point, when homebuilding slowed across the country. Reduced supply, combined with rising demand, helped push prices higher.

In North Texas, that has made homeownership harder for many residents, even as the region remains cheaper than some other major markets.

The issue is not limited to homebuyers. Renters are also facing pressure. A February report from the Child Poverty Action Lab found that half of Dallas renters spent more than 30% of their gross income on housing in 2023.

City Leaders Push New Housing Plan

Dallas officials recently discussed a new housing strategy called Dallas is Home, which aims to improve housing access across the city. The plan focuses on development, affordable housing and homelessness through a broader, multi-part approach.

City Manager Kimberly Bizor Tolbert said the plan would build on earlier housing policies while expanding efforts to address current challenges.

Council member Chad West has also warned that Dallas must treat the issue with urgency. During an April discussion on the housing plan, he said the city is facing a housing crisis and that officials need to take the matter seriously.

Ranking Does Not End the Debate

Clever’s study shows that Dallas compares favourably with several other large metro areas when looking at home prices and income ratios. However, local data and city discussions suggest that affordability remains a major concern for many residents.

A lower price-to-income ratio than other cities may help Dallas in national rankings, but it does not erase the financial pressure facing renters, first-time buyers and households struggling to keep up with rising housing costs.