Austin vs. Dallas: Where to Buy Land for Development for Best Returns?
If you're a builder or investor looking to buy land in Texas, two cities are probably at the top of your list: Austin and Dallas. Both are booming. Both have strong economies. And both are magnets for new residents. But when it comes to buying land for development—and getting the best returns—there are some key differences that can make or break your next project.
Whether you're searching for infill lots for spec homes, larger tracts for subdivisions, or long-term investment land, this guide compares Austin and Dallas side-by-side. We'll break down what makes each market tick, which areas are hot, and what smart Texas land buyers need to know before making their next move.
Let’s get into it.
Why Texas Is a Land Buyer’s Dream Right Now
Before diving into Austin vs. Dallas, it helps to understand why buying Texas land is such a smart move overall.
Texas has no state income tax, making it attractive for investors and businesses.
The state continues to see massive population growth—over 470,000 people moved to Texas in 2023 alone.
Demand for housing continues to outpace supply, especially in major metros.
Land is still more affordable than in coastal states, with plenty of room to build.
At Builders Land Source, we help Texas builders and developers find prime land in Texas every day. And while the opportunities are huge, not all markets are created equal. That’s where choosing the right city makes all the difference.
Overview: Austin vs. Dallas
Here’s a quick snapshot of how the two markets compare.
Factor
Austin
Dallas
Population (Metro)
~2.4 million
~7.9 million
Job Growth
Tech-heavy
Diverse (tech, finance, logistics)
Housing Demand
High, but supply-constrained
Very high, large suburban growth
Land Costs
Higher per acre
More variation, some more affordable
Regulation
Strict
More flexible overall
Builder Activity
Strong, tight supply
Booming, large-scale growth
Investor Appeal
High returns, harder to enter
Strong returns, easier to scale
Both cities are strong, but the path to profit can look different depending on what type of land or project you're targeting.
Buying Land in Austin: Pros and Cons
What Makes Austin Attractive
Austin is often called the “Silicon Valley of Texas”—and for good reason. With major employers like Tesla, Apple, Oracle, and Google setting up shop here, the job market is on fire.
That growth has triggered a surge in housing demand, pushing home prices and rents to all-time highs.
Why builders love Austin:
Strong buyer demand for both entry-level and luxury homes
Limited housing inventory keeps prices rising
High-income jobs attract stable, long-term buyers
Strong resale values and appreciation
Prime areas for land acquisition:
Georgetown and Liberty Hill – North of Austin, booming with master-planned communities
Buda and Kyle – South of Austin, popular for commuters and young families
Manor and Elgin – East Austin’s next frontier, still relatively affordable
Leander and Cedar Park – Northwest Austin with strong schools and growing retail
The Downside
Austin’s popularity is also its biggest challenge.
Here’s what makes land development tougher:
High land prices, especially close to the city
Strict permitting and zoning rules
Long entitlement timelines for subdivisions
Limited utility infrastructure in rural areas
In short, Austin offers big rewards—but you’ll work harder (and wait longer) to capture them.
Buying Land in Dallas: Pros and Cons
Why Dallas Stands Out
Dallas-Fort Worth is one of the fastest-growing metro areas in the U.S.—and it shows no signs of slowing down. With nearly 8 million residents and dozens of suburbs under construction, this is a builder’s paradise.
Why Dallas attracts Texas land buyers:
Huge population growth (over 100,000 new residents per year)
Broad-based economy with jobs in finance, healthcare, tech, and logistics
More available land at competitive prices
Easier zoning and development process in most suburbs
High demand for suburban living and large-lot communities
Best places to look for land:
North Dallas: Prosper, Celina, Aubrey – Luxury builds, large tracts
East Dallas: Forney, Rockwall, Royse City – Affordable lots, rapid expansion
South Dallas: Midlothian, Waxahachie, Red Oak – Undervalued areas with great access to highways
West Fort Worth: Aledo, Willow Park, Benbrook – Popular with families, custom homes
The Downside
Dallas’s biggest challenge? Competition and sprawl.
Lots of builders are active, which can drive prices up
Traffic congestion in some areas
Some pockets already oversaturated with new inventory
Still, the pros far outweigh the cons—especially if you’re looking for scalability and lower land acquisition costs.
Austin vs. Dallas: Cost of Land
Austin land prices tend to be higher per acre—especially closer to the city. Infill lots in East or South Austin can run $300K to $600K per lot, while rural tracts may still cost $40K to $80K per acre (depending on access and utilities).
Dallas land prices vary more widely. Infill lots range from $100K to $300K depending on the neighborhood, while suburban tracts (5–20 acres) can often be found in the $25K–$50K per acre range—especially on the outer edges of DFW.
Verdict: Dallas is usually more cost-effective, especially for developers looking to build at scale.
Austin vs. Dallas: Return on Investment
Both cities offer solid returns—but the style is different.
Austin tends to offer higher resale values and stronger margins per home—especially for high-end or custom projects. But the barriers to entry are high.
Dallas offers more room to scale, with better returns on volume. Lower land costs mean you can develop more lots and generate more consistent cash flow.
Bottom line: Austin is better for premium, targeted developments. Dallas is better for scalable growth and repeatable profits.
What Kind of Builder Are You?
Your business model matters. Here’s where each market may make more sense:
If you’re a custom homebuilder:
Austin is ideal. High-income buyers, tight inventory, and limited competition mean you can stand out.
If you’re a production builder:
Dallas offers the scale you need. The suburbs are booming, land is more available, and cities are generally easier to work with.
If you’re a land developer:
Dallas again provides the edge. You can subdivide more acres for less and flip finished lots to builders or build-to-rent investors.
What to Look for in Prime Texas Land
No matter which market you choose, make sure the land is actually “buildable.”
Checklist for prime land in Texas:
Clear title and legal access
No major floodplain restrictions
Close to utility lines or within utility districts
Compatible zoning or minimal restrictions
Solid soils and topography
Access to highways, schools, and services
Buying the wrong land can cost you time and money. At Builders Land Source, we help our builder clients avoid these pitfalls by doing the due diligence for them.
Off-Market Land Deals: The Real Edge
One of the biggest mistakes new builders make? Waiting for land to hit MLS.
By the time it does, it’s already overpriced—or snatched up.
At Builders Land Source, we focus exclusively on off-market land acquisition. That means:
Direct deals with landowners
Lower pricing and fewer bidding wars
Flexibility on terms and closing timeline
Early access to land others haven’t seen yet
Whether you’re building in Austin or Dallas, off-market deals can make a big difference in your margins.
Final Verdict: Austin or Dallas?
So which is better?
It depends on your goals.
Choose Austin if:
You’re focused on high-end homes or custom builds
You have the patience (and capital) to navigate longer entitlement timelines
You’re targeting strong resale margins over volume
Choose Dallas if:
You want to scale a production or build-to-rent business
You prefer faster approvals and easier land development
You need affordable land to build homes at multiple price points
Both cities are winners—but for different reasons. The best strategy might even be to invest in both markets with different product types or timelines.
How Builders Land Source Can Help
At Builders Land Source, we specialize in helping Texas builders and investors find prime land in Texas—without the headaches.
What we do:
Source off-market land in Austin, Dallas, and across the state
Vet properties for zoning, utilities, flood risk, and buildability
Connect you with landowners ready to sell
Help structure deals with your goals in mind
Offer flexible deal sizes—from single lots to 100+ acre tracts
We know the local rules, the real estate landscape, and what builders need to succeed. If you’re ready to buy Texas land and want a reliable sourcing partner, we’re ready to help.
Ready to Find Your Next Deal?
If you’re serious about buying land for development in Austin or Dallas, don’t wait until the market prices you out.
Let’s get you on the inside track—before the next boom makes it harder to enter.
Visit www.builderslandsource.com to request a free consultation and start getting exclusive access to off-market land today.
Buy smarter. Build faster. Grow bigger. That’s what we help Texas builders do every day.
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