Dallas-Fort Worth and Houston are the nation's No. 1 and No. 3 markets when it comes to future CRE prospects, according to a much-anticipated annual ranking of the most promising U.S. real estate markets.

 

The Metroplex took the top spot in an annual survey conducted by the Urban Land Institute as part of its 2025 Emerging Trends in Real Estate report, up from No. 3 last year. Houston, ranked No. 11 last year, jumped eight spots to land in third place, after No. 2 Miami and ahead of No. 4 Tampa-St. Petersburg, Florida, and No. 5 Nashville.

 

Austin and San Antonio, meanwhile, fell out of ULI's top 10 altogether. The once-red-hot state capital slipped from fifth last year to No. 15, while San Antonio dropped from eighth last year to 15th in 2025.

 

Study authors said this year's results were more volatile than in years past, with seven of last year's top 20 markets falling off that list. But Sun Belt cities remained a dominant force on ULI's 2025 list because “geography matters more than ever,” an industry academic and adviser told ULI.