Where Dallas Is Growing Next: A Smarter Way to Bet on the Suburbs
If you’re watching the Dallas real estate market from the sidelines, it may feel like the window has closed on great opportunities. Prices have risen, competition is fierce, and interest rates have cooled some of the frenzy. But zoom out a bit—and look beyond the city core—and a very different picture emerges.
Dallas isn’t slowing down. It’s spreading.
The metroplex is growing at one of the fastest rates in the country. From 2020 to 2023, Dallas-Fort Worth added over 400,000 people, making it the #1 metro area for numeric population growth in the U.S., ahead of Houston, Atlanta, and Phoenix. That influx isn’t landing in downtown condos—it’s going to the suburbs. And for real estate investors, that opens up a very specific set of opportunities: towns that are absorbing the growth, attracting major employers, and offering solid prospects for long-term value appreciation and consistent rental income.
Let’s talk about the areas that matter—and how to think about them through a Section 8 investment lens.
📍Northbound: Princeton, Anna, Celina—and the Universal Effect
The clearest pattern in DFW’s growth map is northward expansion, particularly into Collin County. What used to be farmland just a few years ago is now a patchwork of master-planned communities, new schools, and highway expansions.
Princeton has led the charge, officially the fastest-growing city in the U.S. by percentage with a +30% population jump in just a year. At a median home price still under $350K, it’s one of the last places within reach for many first-time homebuyers and renters alike.
Neighboring Anna is no slouch either, having grown over 40% in three years. The U.S. Census ranked it one of the fastest-growing small cities nationwide, and new rooftops are being added at a record pace.
Celina, while slightly further west, has declared it’s planning for a future population of 350,000. With its proactive city planning and developer-friendly policies, it’s attracting a broad mix of families and investors looking for scale.
All of this is happening near some of the region’s biggest job stories. Frisco—once a bedroom community itself—is now home to the Dallas Cowboys HQ, PGA of America, and soon, a $550M Universal Studios theme park. The result? Tens of thousands of new jobs and a massive halo effect that boosts demand in every direction around it.
This corridor—from McKinney through Princeton and Anna to Celina—is becoming the new heart of middle-class growth in DFW.
📈 Eastward Momentum: Royse City, Josephine, and the Next Frontier
If the north is becoming the new core, the northeast and east are next in line for spillover growth. Builders and buyers priced out of Frisco or McKinney are turning to towns like Royse City and Josephine, where land is still relatively cheap and infrastructure is catching up fast.
Royse City sits at a unique three-county intersection—Rockwall, Hunt, and Collin—and it’s just off I-30, giving it direct access to Dallas in under 45 minutes. It’s grown by roughly 30% over the last decade and remains one of the most active markets for new single-family construction priced under $350K.
Josephine, just northeast of Royse City, is a smaller town but rapidly developing. It reminds many of Princeton five years ago: affordable, quiet, and just beginning to attract the kind of community investments that signal long-term upside. Builders are in, and that’s often the first domino in the growth chain.
Meanwhile, Forney, once seen as an investor-friendly growth suburb, is facing signs of oversupply. Despite strong population growth and beautiful homes, the rental market—particularly for Section 8—has shown some signs of softening. It’s a reminder that not all growth is equal, and that suburb dynamics can shift quickly when supply outpaces infrastructure and rental demand.
🧳 Fort Worth: The Western Alternative
While much of the buzz focuses on Dallas and its northern arc, Fort Worth is quietly building its own story—especially eastward toward Arlington, Mansfield, and Grand Prairie.
Large employers like Lockheed Martin, American Airlines, and Alcon are anchored in the western half of the metro, and the housing prices in those areas remain attractive relative to their eastern counterparts. If Dallas County’s suburbs are priced up or tapped out, Tarrant County offers solid alternatives with good school districts, healthy Section 8 participation, and less investor saturation.
Fort Worth’s population grew by nearly 25% over the last decade, outpacing Dallas proper. And while the Section 8 payment standards are slightly lower in some zip codes, the demand remains steady, and the tenant base is diverse and stable.
🏠 Section 8: Where Demand Meets Opportunity
It’s not just about growth. It’s about investable growth.
Here’s how we’re thinking about Section 8 overlays in all of these expansion zones:
Mesquite remains a rock-solid performer: good payment standards, consistent demand, and tenant familiarity.
Forney is a cautionary tale—rapid development can outpace demand, particularly from voucher tenants who prioritize proximity, familiarity, and amenities.
Princeton and Royse City are emerging players. Investors are already successfully placing tenants in parts of Princeton, and Royse City’s position near Rockwall gives it potential to follow suit.
Josephine is early. There’s little established data on voucher use, but that also means an opportunity to shape the market—especially as nearby towns reach saturation.
Fort Worth suburbs, especially areas like Arlington and Mansfield, have stable program participation and are worth a look for investors who prefer western DFW or are seeking alternatives to Collin and Dallas counties.
The key question we always ask: Would a voucher tenant reasonably choose to live here? Can they access jobs, transit, schools, and essentials with ease? If the answer is yes—and the payment standards align—it’s worth considering.
🔍 The Playbook for 2025
If you’re looking to place smart bets in Dallas-Fort Worth this year, your strategy should include:
Population + permit growth: Follow the rooftops—and the approved developments.
Employer expansion: From Universal in Frisco to Goldman Sachs in Uptown to Amazon in Wilmer-Hutchins.
Section 8 overlays: High demand + favorable payment standards + tenant appeal = winning formula.
Low-maintenance properties: Newer construction preferred, especially for lower vacancy and fewer repair surprises.
Commuter logic: Properties within 45–50 minutes of job centers and with basic retail/services infrastructure hold up best.
Bottom Line: Dallas isn’t just growing—it’s reorganizing. The next generation of real estate value won’t come from yesterday’s hot ZIP codes but from the edges—where families are moving, builders are betting, and smart investors are planting early flags.
Whether you’re wondering if Princeton still has runway, if Josephine is too soon, or if Royse City is just right, let’s talk through the data. This is the kind of research we live for at SolMidas.