Have affordability concerns put your homebuying plans on hold? There’s good news. Over the past year, housing affordability has improved across all 50 states – with North Texas leading the way.

A Nationwide Shift Favors Buyers

In recent years, affordability has stopped many would-be home buyers in their tracks. However, new research from the financial services company First American finds that pressure is finally easing. Over the past year, home affordability has widely improved, notably in 48 of the nation’s top 50 metropolitan areas.

Nationally, house-buying power rose nearly 10% as income growth and affordable mortgage rates added roughly $36,600 to what a typical buyer can afford.

More Choices Mean More Negotiating Power

What's driving the shift in favor of buyers? In many markets, an increased home inventory. When buyers have more choices, sellers are often more willing to lower their prices and make concessions on closing costs, repairs, and interest rate buydowns. These can significantly lower upfront costs and directly impact how much home you can afford.

In the Dallas market, inventory is running 13% above its pre-pandemic norm, helping cool price growth and giving buyers more negotiating leverage.

In the wider North Texas housing market, existing home inventory is rising, while prices are softening slightly – in February 2026, the median price was $385,000, down from $393,500 a year earlier.

Home Affordability Is Improving Faster in Dallas

Nationally, the income needed to buy a home has been declining, offering much-needed relief for homebuyers. According to a recent Redfin report, affordability is improving considerably in Dallas, where the income needed to buy a home has dropped 7.4% year over year.

Two factors – softer home prices and lower monthly payments – have combined to reduce what Dallas homebuyers typically need to earn to qualify for a mortgage loan.

DFW Ranks High in Overall Affordability

A recent report from the fintech company MoneyLion ranks America's fastest-growing affordable cities. Seven DFW Metroplex cities made the cut, including Frisco in the number-one spot, McKinney at number four, and Allen ranking at number six. Lewisville, Denton, Fort Worth, and Grand Prairie also represent North Texas in the national affordability ranking.

Ultimately, the home you can afford goes beyond location and home inventory. You need the right financing. To talk about affordable financing options, contact our team at (972) 591-3097 or connect with us online.