It probably comes as no surprise that there is a housing deficit in DFW and throughout North Texas. In fact, there are more than 120,000 homes missing according to Zillow, which can be attributed to the slow home building market and lack of home construction since the 2008 recession.
Analysts at Zillow say that across the country, the lack of construction has resulted in a shortage of more than six million homes. There are fewer permits being issued for single-family homes for a number of reasons, the most notable being increased land, materials and labor costs. When demand for homes is high and supply low, home prices increase. It’s the nature of the beast.
According to reports approximately five new homes were added for every 1,000 residents during the period from 1985 to 2000, however this number has decreased to about 3 1/2 homes for every 1,000 residents since 2008. With thousands of people coming to the DFW area because of economic growth and employment opportunities, home inventories are low.
Unfortunately, increased home prices and the low level of new home construction have made it difficult for first-time buyers. Also, the median age of houses available in the DFW area has gone up due to a lack of newly constructed homes. The median age of homes that were sold in the DFW area in 2007 was 10; last year, that number climbed to 22 years old.
This isn’t a problem unique to Dallas or North Texas. In fact, many major metropolitan areas have been impacted by the shortage of newly built homes including Atlanta, Orlando, Las Vegas, Phoenix, Philadelphia and Miami-Fort Lauderdale, to name a few. Across the nation the median age of homes sold has grown to 37 years since the 2008 recession and subsequent slowing of home construction.
The good news is that while inventories of available homes remain low, there are some beautiful homes on the market in the Dallas-Ft. Worth metro area! At Team Nelson our Dallas real estate professionals can help make your home search easier. We know what’s available and which homes would best meet your needs in terms of location, space, design, educational opportunities, community and more. Let us take the hassle out of finding your dream home.