Topremodelers.com does not see any possible sign of the real estate market slowdown in Dallas, Texas in the near future.
According to the predictions from the Texas lead generation company, Topremodelers.com, there is no possible sign of construction market slowdown in Dallas for some time now. No matter whether it’s a house, an apartment, a complex, or a commercial building, the market is registering a new high and it will continue to rise in the future too. Some housing contractors have seen double-digit growth per quarter. And, some of the Austin contractors are planning to expand their activity to Dallas early next year. All these are considered as the positive signs for the Dallas real estate market as said by experts at Topremodelers.com and they see no signs of the market slowdown in the future too. The following article will discuss all the associated factors with regards to the real estate market growth in Dallas here. So, just keep reading…
Dallas Housing Market is on pace:
As many of you might be aware already, Dallas has managed to become one of the fastest-growing cities in the nation. Now, Dallas is seen as a hotspot for the new construction companies to relocate and start doing business here. The main reason for this is because they feel motivated by the lower costs of doing business as reported in the history of the region. In addition, the cost of living is another factor when it comes to employees.
According to the reports from the Dallas Business Journal, the sales of already existing single homes in Dallas-Fort Worth were on pace to surpass the last year’s figures. Thus, Dallas is all set to register another record year. It’s also to be noted that the costs of the properties are also expected to increase as supply continues to contract. In this line, we would like to share another statistics here. For the first time in the market history, the average home price in the market was reported as higher than the national average. Thus, the median home price in Dallas for the first quarter was $226,500, while the national average was just $242,100. This way, the city reported one of the nation’s largest home cost increases in the particular time.
On the other side of the story, the real estate analysts are also worried due to the rapid development of the market in Dallas-Fort Worth. Their worries are based on the fact that Dallas could soon lose its status as the historically affordable real estate market. Now, as the demands pick up and the inventory lags, larger construction companies are digging in. These changes could make the Dallas as one the least affordable markets in the coming days.
Population Growth is a reason:
Yes, of course, New York is considered to be the cultural hub and it is the epicenter of world finance. It’s also one the world’s hot fashion capitals. But, it seems to fall behind in one major factor. The people here are prompted to move across the country for one reason, jobs. Between the years 2010 to 2016, a large number of Americans were found to have headed out of New York to other regions of the nation. These numbers are huge when compared to the number of people came to New York from other places. Of all the Americans, who have moved out of the coasts during 2010-2016, a majority of people chose to move to Dallas. The total number of domestic migration to Dallas was found to be 304,468. The most compelling factor that invites people from other places is the economic case for migration. According to the reports, the economy in Dallas has increased on an average of 4% every year from the year 2011 to 2015.
But wait, the migration was seen not only from New York but also there are workers seen relocating from Southern California as well. In this, one thing to be understood is that not only working population is making a move from various parts of the country to Dallas, but also the college graduates. These people are moving here to start their careers in the so-called best city of the U.S. In addition to the local migration, we can also see highly skilled immigrants from India. They are found to be capitalizing on the city’s demand for technology workers. Moreover, there are also people from the East Coast mainly for weather. They are already tired of facing harsh climatic conditions in their regions and they come here looking for the best places to survive.
Overall, it has been reported that nearly 800,000 people have relocated to Dallas region since the year 2010. These numbers are far higher than the total population of Washington D.C. During the last year alone, nearly910,000 people have come. If we add births and deaths, the population in the Dallas region has increased by about 133,000 during the last year. Thus, Dallas has acquired the #1 spot for the population growth in the U.S. in 2016.
Efforts to Attract Millennials:
In the history of the U.S., millennials form the largest generation, and this population is found to be flexing their muscles to the housing market now. On the other hand, Dallas, for its part, is trying to bank on its growing cultural commemorative to attract the millennial population. In this, a PR campaign as described above has been created. The campaign is named as “Say Yes to Dallas”. In this campaign, Dallas describes itself as more progressive and happening. These efforts combined with the millennial preferences on housing markets, which are affordable suburbs with local factors, is making the Dallas area the hot spot. With these things in the market, there will be no real estate slowdown in the Dallas region for at least some time.
Dallas Tops the List for Employment:
As everyone would agree, employment is another factor which determines the population growth in a region. Thus, Texas is found to be one of the highest job producers. In fact, Dallas was at the top of the list to surpass New York. Thus, New York has been pushed to the second spot as the highest job generator. The new jobs of Dallas are found to be the result of the dedicated efforts taken by the local economic developers to attract companies from other places. Thus, the major players like Toyota, Boeing, Jamba Juice, Jacobs Engineering, Liberty Mutual, and others have stepped foot into the city to open new jobs. The city even conducted a PR campaign to update its persona and the enhancements made the city much nicer. Above all, the small cultural changes have made the city more attractive to the professionals. Thus, one can see the rise of microbreweries, chicken coops, and other alternatives to the Cowboy football of the city.
One should try to understand why Dallas is been called as the “Big D”. It’s due to the Dallas mindset, which is all about bigger, better, and the best. No matter, whether it’s Cowboys stadium or the Arts District downtown, the people of Dallas never left any stone unturned to make their city the best for jobs. It has been seen that they are reinventing the metropolis almost every day. For instance, let’s take the “Urban Park” that is built along the Trinity River. This would be almost eleven times larger than the Central Park of New York.
Not only this, there is something else for the people, as well as for the future immigrants to Dallas to boast about. As the sub-heading suggests, the metropolitan area, the “Dallas-Plano-Irving”, ranks first this year on the “Forbes list of the Best Cities for Jobs”. The interesting thing is that Dallas is a region, which is the polar opposite in several ways to San Francisco and San Jose, the toppers of the list during the past few years. In contrast to the Bay Area, which is tech-driven, the economy of Dallas has more than one point of strength. As such, the points of strengths of Dallas are:
- Aerospace and defense
- Financial services
- Life sciences
- Data processing
According to the reports, the employment in the Dallas metro region has increased by 20% during the past five years. During the last year alone, a 4.2% increase in the employment was reported. As such, the robust creation of jobs is not only found in professional and business sectors but also in a range of low salary sectors like wholesale and retail trade and hospitality.
An Overview of Housing Sector Boom in Dallas:
As it’s obvious from all the above paragraphs, Dallas-Fort Worth was already at the top when it comes to homebuilding market in the country, especially, in the apartment and single-family home construction. As such, the builders started the construction of over 50,000 apartments and over 31,000 single-family homes this year. It has been said by the experts that almost 30,000 new apartments during this year. As you can understand it clearly, that’s a lot of new homes coming on-line at a time. These numbers have hit a new historical high and almost all the neighborhoods that the Dallas people see is found to be having a construction activity. As such, the largest numbers of new apartments are on their way in the Frisco and the central Dallas regions. Followed by these areas, the third spot has been taken by Allen/McKinney region with 5,319 new apartments under construction.
According to various reports, North Texas is found to be taking the second place next only to the New York City when it comes to the apartment starts. And, it has been observed that a vast majority of apartment construction has been imbibed by the relocating population from the other parts of the country, as well as from the rest of the world. Only <5% of the rental units in the entire North Texas rental spaces are empty till date and the occupancy rate has seen an increase of almost 6% from the previous year. An increase in this rate is not only seen with apartment starts but also with single-family homes. While the previous year seen 29,626 home starts, this year has seen 31,049 starts. These altogether have put Dallas at the top of the national building ranking, which continues to hang onto its top spot from 2016 as the busiest homebuilding market in the country.
According to the experts at Top Remodelers.com, this market will not see a slowdown in any time in the future as well. Although there will some increase in vacancies during the remaining part of the year and the annual rent increases of up to 4% can be seen across the region, the strong performance of the market will not lose its momentum. With the employment growth in the region that is running over 100,000 new jobs every year, the apartment analysts, as well as builders are very confident that the real estate market would not get overbuilt anytime soon.