Dallas Housing Market Forecast
While homebuilders are slowing their business, continued demand may mean the Dallas-Fort Worth housing market fares better than other parts of the U.S. in 2023.
Many think of the Dallas real estate market as the best of both worlds: a big city with endless suburban and rural areas within reasonable driving distance; a growing population and plenty of demand, but ample room to expand; rising prices and plenty of big-ticket buyers, but a pricing base indicative of Texas and the rest of the south that doesn’t get too prohibitive.
But can the Dallas-Fort Worth housing market stay that way forever?
While homebuilders appear to be pulling back the scale on plans for new development and consumers are less optimistic than they were at the start of 2022, the Dallas-Fort Worth metro area is seeing ongoing rent and home price growth.
Using information from the U.S. News Housing Market Index, we’ve compiled the data you need to get a grasp on the current state of the market. Here’s what you should know about the Dallas housing market in the recent past, now and looking ahead into mid-2023
How the Dallas Housing Market Changed in 2022
Looking at permits for new construction of residential housing in the Dallas-Fort Worth area, you may think it’s a tale of two different cities when comparing single-family and multifamily construction, based on data from the U.S. Census Bureau.
The Dallas market had 2,188 single-family home permits approved in December 2022, a 34% decrease compared to December 2021.
Approved permits for single-family homes in the Dallas market reached a five-year peak in March 2022 with nearly 6,000 approvals, and it has largely declined since. In the final three months of 2022, there were 7,088 single-family home permits approved, a 32% decline from the same time period in 2021, which saw 10,570 single-family homes approved for construction.
The majority of single-family construction in the Dallas market is occurring in the suburbs, where there is available land. The outskirts of the metro area is also where more affordable new construction houses are likely to be. If you’re looking for a new house between $300,000 and $600,000, “you’re going to be an hour outside of Dallas,” explains Damon Williamson, managing partner and principal broker at The Agency in Dallas.
There is residential construction activity closer to the center of Dallas, but it’s geared more toward higher-density options. “You’re seeing the multi-unit type development and lots of apartments,” says Belinda Epps, broker and owner of Epps Realty in the Dallas metro area and 2023 president of the MetroTex Association of Realtors.
Multifamily housing construction appears to be picking up steam in the Dallas area as well. Multifamily housing permits had more than 3,102 units approved in December 2022, an 86% year-over-year increase.
The final three months of 2022 saw more than 9,291 units approved for construction, a 71% increase compared to the same time period in 2021, when permits were approved for just under 5,420 units.
Read Entire Article Here: https://realestate.usnews.com/real-estate/housing-market-index/articles/dallas-housing-market-forecast