Dallas

Photo courtesy Wikimedia Commons

By Phil Crone
Executive Officer, Dallas Builders Association

Dallas and surrounding areas have obviously experienced remarkable growth over the last few years, especially with commercial construction and multifamily. Residential development struggles to keep pace with builders primarily focusing on infill lots and small-scale, shared access projects. Dallas permitted just over 2,000 homes last year and is on track for a similar figure in 2019.  

Dallas is also not exempt from the impact of rising housing costs. It is well documented that the city needs 20,000 affordable housing units. In the single-family context, new affordable housing needs to be priced around $250,000 to $350,000. Getting there is especially difficult in Dallas, with land prices and, in some cases, neighborhood opposition to new affordable homes. 

While some factors are out of our control, we need to take ownership of what we can. The stakes are too high not to. Homeownership remains the number one path to wealth creation for the American family, and the attainability of that dream here in D/FW remains a primary impetus to job creation. However, for too many people, homeownership is becoming less attainable, the drive to work is getting longer, and the options for safe, quality homes at a reasonable price are getting fewer. 

A major barrier to affordable housing in Dallas is the city itself. Development processes are not operating as efficiently and effectively as they should. Attempts to build attainable housing suffer disproportionately from these unforced errors. 

This is not a new issue. Builders, developers, and small business owners have bemoaned Dallas’s lack of transparency and predictability for years, yet Dallas has succeeded in spite of itself. 

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Photo courtesy Flickr/Woodleywonderworks

From staff reports

How much do you need to make per year to afford a home in Dallas? According to one report, less than $60,000.

But is that true? According to CNBC Make It, they’ve identified 15 cities where the qualifying income to purchase a home with 10 percent or 20 percent down is an annual salary of $60,000 or less. 

They’ve based this determination on data from the National Association of Realtors’ Metropolitan Median Area Prices and Affordability index. It also assumes a 4.1 percent interest rate, and a monthly principal and interest payment that is 25 percent of a homebuyer’s income, or less.

According to CNBC’s number crunchers, Dallas made the list. And it’s not too surprising, after all, another study from Zillow found that someone with a high school diploma and no college hours at all could afford (in theory) to buy a home in Dallas.  (more…)

 

mall

Photos courtesy Northeast Collaborative Architects

We’ve talked before about what can be done with mothballed schools, and decommissioned churches. But the closure of Collin Creek Mall in Plano this week gave rise to another question: What could be done with an old mall?

After all, many analysts believe the number of shuttered malls will only grow.

“There are still about 1,100 malls in the U.S. today, but a quarter of them are at risk of closing over the next five years, according to estimates from Credit Suisse,” Josh Sanburn wrote in Time magazine in 2017. “Other analysts predict the number will be even higher.” (more…)

As Dallas dirt becomes more and more pricey, we’ve been keeping our finger on the pulse of our close-in suburbs for good deals you just can’t ignore. One such suburb is Mesquite, which is proving to be one of the next big areas primed for investors. 

And this listing from Bobbie Jo Glover of Compass’ Summit Group is a shining example of a move-in ready Mesquite ranch that is not only affordable but is close to great shopping and within an easy commute to Dallas. For those looking high and low for a close-in home that won’t break the bank, set your sights on our Inwood National Bank Home of the Week.

Not only is this Hearthstone Manor ranch adorable, but it shows that you don’t have to head to the pricey suburbs up north to get a great house for an amazing price. 

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high school

From staff reports

The good news? A person with a high school diploma could (in theory) afford to buy a home in North Texas. The bad news? It will probably take seven years (at least) to save the down payment.

A new Zillow research report matched median mortgage payments in the country’s 50 largest metro areas for the first quarter of this year to the most recent American Community Survey incomes for each educational level, adjusting the latter’s 2017 figures for 2019’s inflation.

Somewhat surprisingly, 36 of those 50 fleshed out to be theoretically affordable to households earning the income associated with a high school diploma-level of education. Dallas, Houston, San Antonio, and Austin were among the 36 cities named.

In fact, in Oklahoma City, a potential homebuyer wouldn’t even need a high school diploma to afford the median-valued home. (more…)

GarlandWhen we look for that magical turnkey home in the $100,000 to $199,999 price point for the Weekend One Hundred, sometimes it’s like searching for a unicorn. But today’s property is not only turnkey, it’s close to downtown Garland in the established neighborhood of Park Groves.

Yes, this Midcentury Cottage is a three-bedroom, one bath, but it makes an excellent home for a first-time buyer, and can even see you through getting married, having a kiddo, and even elementary school.

Located at 1500 Hilltop Drive, this listing is also very new — as in, it’s not even been on the market a full 24 hours. It sits on a 9,104 square foot lot, too, which means that with some clever configuring and a great architect and contractor, you could probably even finagle a second bathroom, potentially turning one of the bedrooms into a master suite. (more…)

Five of the top 25 cities for home value appreciation are in Texas, but where does Dallas fall? Where does the state fall when it comes to affordability? And how many Texans (and Dallasites) can afford the median home price?
We have all this in this week’s roundup of real estate news.

Texas Leads Pack in Home Value Appreciation — Where Is Dallas?

An analysis by Forbes revealed that of the top 25 cities in the country where home values are still rising, five are in Texas. (more…)

affordable

Nearly 700 builders from across the nation converged on Capitol Hill in June for NAHB’s 2019 Legislative Conference to urge lawmakers to pass policies that will support building quality, affordable housing (Photo courtesy NAHB).

From the National Association of Home Builders

As the National Association of Home Builders (NAHB) celebrates National Homeownership Month in June, builders are urging Congress to address America’s housing affordability challenges.

“Removing regulatory barriers that contribute to the increased costs of housing will pave the way to homeownership,” said National Association of Home Builders (NAHB) Chairman Greg Ugalde, a builder and developer from Torrington, Conn. “Home builders and the residential construction community are committed to working with Congress to ensure homeownership is within reach of hard-working families.” (more…)