Which city has the best real estate development prospects in 2026?

Dallas-Fort Worth has the best real estate development prospects in the United States in 2026, according to the ULI/PwC Emerging Trends in Real Estate 2026 report released November 5, 2025. Dallas-Fort Worth holds the top position for the second consecutive year. It is followed by Jersey City (#2), Miami (#3), Brooklyn (#4), and Houston (#5). The survey reflects the views of more than 1,700 real estate investors, developers, lenders, and advisors across 81 U.S. and Canadian markets.

Why is Dallas-Fort Worth the top real estate market in 2026?

Dallas-Fort Worth leads real estate development prospects in 2026 due to its diversified and fast-growing economy, business-friendly regulatory environment, low development costs relative to coastal markets, strong population and job growth, and significant corporate relocations (including financial firms, technology companies, and energy companies). DFW also benefits from strong infrastructure investment, a central geographic location, and continued demand for industrial, multifamily, and mixed-use development.

What property sectors are best for development in 2026?

Data centers and senior housing are the top-rated property sectors for development prospects in 2026, according to ULI/PwC Emerging Trends. Data centers rank first for both investment and development prospects — the only property type with scores above 4.0 on a 5-point scale — for the third consecutive year. Senior housing ranks second as demand surges with the oldest baby boomers turning 80 in 2026. Other strong sectors include moderate-income/workforce housing, single-family rentals, and industrial/manufacturing.

How many markets did ULI survey for Emerging Trends 2026?

ULI and PwC surveyed 81 U.S. and Canadian real estate markets for the Emerging Trends in Real Estate 2026 report. More than 1,700 real estate investors, developers, lenders, brokers, and advisors participated in the survey or interviews. The average overall real estate prospects score was 2.81 out of 5.0, up from 2.75 in the prior year's survey. The last time the average was above 3.0 was 3.19 in 2022.

Which region has the best real estate prospects in 2026?

The Southeast region has the highest average real estate prospects score among the five ULI regions in 2026, at 2.90. The Southeast also places the most markets in the top 20 rankings. The West region has the lowest average at 2.68, with only Phoenix (#10) and Orange County (#18) making the top 20. The Northeast (New York metro area) places multiple markets in the top 10 — Jersey City (#2), Brooklyn (#4), Northern New Jersey (#7), and Manhattan (#9).

What happened to San Francisco and San Jose real estate rankings in 2026?

San Jose and San Francisco each moved up more than 20 places in the ULI/PwC Emerging Trends 2026 rankings, rising from the bottom third of all markets to the middle of the overall rankings. This significant upward movement reflects a brighter outlook driven by the AI and technology sector boom in Silicon Valley, which is driving office demand, housing pressure, and data center development in Northern California.

What city moved up the most in real estate rankings in 2026?

Tallahassee experienced the largest ranking movement in the ULI/PwC Emerging Trends 2026 survey, rising 36 places — from near the bottom of all 81 markets to the top half of the overall prospects list. Chicago also moved up significantly, gaining 11 spots to reach the top third of all markets. Orange County moved up 11 places to reach 18th overall.

Is the real estate market improving in 2026?

Cautiously, yes. The ULI/PwC Emerging Trends 2026 report describes the overall industry sentiment as cautious optimism amid a fog of economic uncertainty. The average market prospects score rose to 2.81/5.0 in 2026, up from 2.75 in 2025 and 2.74 in 2024. However, this remains below the 3.0 threshold that would indicate good conditions — the last time the average exceeded 3.0 was 3.19 in 2022. Financing costs and economic uncertainty continue to weigh on developer confidence.

What is driving real estate development in Dallas-Fort Worth?

Dallas-Fort Worth real estate development is driven by: continued population growth (DFW is among the fastest-growing metros in the U.S.), strong corporate relocations from California and the Northeast, diversified economy (energy, technology, financial services, healthcare), affordable land costs relative to coastal markets, business-friendly Texas regulatory environment with no state income tax, and strong industrial and logistics demand tied to e-commerce and supply chain reshoring.

What is the development outlook for data centers in 2026?

Data centers have the highest investment and development prospects score of any real estate property type for the third consecutive year in 2026, with both scores above 4.0 on a 5-point scale. Demand is driven by AI infrastructure buildout and cloud computing expansion. However, power grid constraints, water scarcity issues, and supply bottlenecks are limiting where new development can occur. National vacancy is below 2% and most facilities are pre-leased before completion.

Which U.S. cities are declining in real estate development prospects?

Cincinnati and Minneapolis/St. Paul experienced the most significant declines in 2026, both falling from the top half of overall prospects to the bottom half. Indianapolis and St. Louis also declined by approximately 10 spots each. Among Florida markets, Deltona/Daytona Beach, Southwest Florida, and Jacksonville each fell by more than 10 spots, despite the overall Southeast region maintaining the highest regional average.

What is the real estate development outlook for Miami in 2026?

Miami ranks #3 overall in ULI/PwC Emerging Trends 2026 real estate development and investment prospects — the highest of any Southeast market. Investor interest is particularly strong in hotels, retail, and office properties, though there is more caution on apartment acquisitions due to elevated supply. Miami has held within one ranked spot of its 2025 position, indicating sustained, stable investor confidence rather than volatility.

What is senior housing real estate development outlook?

Senior housing ranks #2 for both investment and development prospects in the ULI/PwC Emerging Trends 2026 survey, just behind data centers. The sector is approaching a historic demand inflection point as the oldest baby boomers turn 80 in 2026. Record-high occupancy levels, limited new supply, and shifting consumer preferences toward wellness-focused communities are driving development interest. Developers are diversifying across active adult, independent living, assisted living, and memory care subtypes.

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Best U.S. Cities for Real Estate Development 2026 — DFW #1

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Real Estate DevelopmentULI / PwC2026U.S. Markets

Cities with best development prospects in real estate in the U.S. 2026

Q: What is the ULI PwC Emerging Trends in Real Estate 2026?

Emerging Trends in Real Estate 2026 is the 47th annual industry outlook published jointly by PwC and the Urban Land Institute (ULI), released November 5, 2025. It is based on surveys and interviews with more than 1,700 real estate investors, developers, lenders, and advisors across the United States and Canada. The report rates 81 markets for investment and development prospects on a 5-point scale and identifies key trends, property sector outlooks, and capital market conditions.

Dallas-Fort Worth leads U.S. real estate development prospects for a second consecutive year in the ULI/PwC Emerging Trends in Real Estate 2026 report. Jersey City ranks #2, Miami #3, Brooklyn #4, and Houston #5. The survey covers 81 markets and draws on insight from more than 1,700 real estate investors, developers, lenders, and advisors. Average overall prospects score rose to 2.81 out of 5.0, up from 2.75 in 2025. Data centers rank as the top property sector for the third straight year, followed by senior housing. The Southeast region leads all five regions at an average of 2.90.

BusinessStats Research Desk

Real Estate & Property Markets Intelligence Division

26 min readApril 2026ULI/PwC 2026 Report

Data Sources & Methodology

Primary Source: PwC and Urban Land Institute (ULI) — Emerging Trends in Real Estate 2026 (47th edition), released November 5, 2025. Survey of 1,700+ real estate investors, developers, lenders, brokers, and advisors across the U.S. and Canada. Markets rated on a 5-point scale for investment and development prospects.

Methodology: Each year, survey participants rate 81 markets for investment and development prospects across property types, and rate aspects of their local markets. Ratings are combined and calculated to determine overall rankings. A regional framework captures sentiment across large and small markets. The average score for 2026 is 2.81/5.0.

Coverage: 81 U.S. and Canadian markets total. Top 10 confirmed: Dallas-Fort Worth, Jersey City, Miami, Brooklyn, Houston, Nashville, Northern New Jersey, Tampa-St. Petersburg, Manhattan, Phoenix. Orange County confirmed at #18. Tallahassee confirmed +36 places. San Jose and San Francisco confirmed +20 places each.

DFW#1 for 2nd Year Running

2.81Avg. Prospects Score /5.0

1,700+Professionals Surveyed

81Markets Ranked

2.90Southeast Avg — Highest

Data Centers#1 Sector — 3rd Year

#1 DFWDallas-Fort Worth

#2 Jersey CityNew York Metro

#3 MiamiSoutheast

#4 BrooklynNew York Metro

#5 HoustonSouthwest

+36 TallahasseeBiggest Mover

Top 10 Rankings Chart

Local market perspective on development opportunities for real estate in the United States in 2026, by city

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What’s inside 6 sections

Top 10 U.S. Markets for Real Estate Development in 2026
U.S. Real Estate Development Prospects 2026 — Key Markets Data Table
Data Centers Lead All Sectors for Third Consecutive Year — Senior Housing #2
Southeast Leads All Regions at 2.90 — West Lags at 2.68 Despite Tech Recovery
Tallahassee +36, San Jose and San Francisco +20 Each — The Year's Biggest Shifts
Frequently Asked Questions — U.S. Real Estate Development Prospects 2026

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Cities with best development prospects in real estate in the U.S. 2026

Local market perspective on development opportunities for real estate in the United States in 2026, by city

Read the full report

Top 10 U.S. Markets for Real Estate Development in 2026

U.S. Real Estate Development Prospects 2026 — Key Markets Data Table

Data Centers Lead All Sectors for Third Consecutive Year — Senior Housing #2

Southeast Leads All Regions at 2.90 — West Lags at 2.68 Despite Tech Recovery

Tallahassee +36, San Jose and San Francisco +20 Each — The Year's Biggest Shifts

Frequently Asked Questions — U.S. Real Estate Development Prospects 2026