Dallas Fort Worth –Number 1
For the past thirty plus years ever since the Savings and Loan crisis in the late 1980s, Dallas/Fort Worth and Texas emerged as a less energy dependent, business-friendly magnet for job and population growth. In the last year (2022), here are some eye-popping stats:
DFW: #1 in Housing Units
Texas: # 1 in Housing Units
Employment/Job Growth: #1
Moving Trucks – Dallas/Fort Worth & Texas is the #1 destination.
With a population of 7.75M that is comprised of 3.0 detached single family housing units of which 1.98M are single family detached and 1.0M are rental units. There are many studies saying that there is additional demand for 100K more units of ownership housing due to a number of factors including job growth, in-migration, deaths and births, along with societal lifestyles. The growing single owner and renter pool is ever increasing as technology disrupts job locations, job tenure, and lifestyles.
Ownership Housing Units:
What is certain is that the next generation of housing lots being developed or just delivered is much more expensive than the last, and new communities will be more expensive as a result.
So, for those expecting a lowering of house prices, it will not result from low pricing. Construction costs have slightly decreased for lumber, but all other costs have increased or stayed flat. Lot sizes and larger lots will be less common, and lot sizes will have to shrink. House sizes will tighten up, too, or shrink, because of affordability issues. Most of the new construction is on the outskirts, looking like a donut of irregular shape, and adding another layer of people. Normally, upward movement in the form of mid rises and high rises is a mechanism to counteract prices going up, however, the Dallas Fort Worth Metroplex (except in unique inner-city locations) is not that city, so that is not happening here.
Rental Housing Units:
Going forward, the higher interest rates hurt apartment construction too. The returns required for an apartment development make it more expensive to finance a development, requiring more investor equity, and higher returns, all pointing to fewer units constructed. This will add pressure to the overall housing supply.
So, What Should a Consumer do?
You should follow the trends, especially if they are longer term. The trend is higher prices, so, buy now or sooner. The trend is smaller because of affordability issues, then it is logical to assume smaller lot or attached will be more prevalent. The trend is as prices go higher, buyers look for compensating factors such as architecture, outdoors, amenities, and finishes to justify the price. The trend is qualification is harder due to higher prices, so efficient townhomes will lower the cost to own, and thereby increase the buyer pool.
What do all these trends point to? A Grenadier Townhome would be following all these trends. Come see the 1 Story Villas and 2 Story Townhomes available at Mira Lagos in Grand Prairie, at Woodbridge in Wylie, and Windsong Ranch in Prosper. Grenadier builds high lifestyle townhomes focused on community, outdoor courtyards, and terrific architectural styling. Located in Master-Planned Communities, a Grenadier Townhome is a unique lifestyle option.