Excerpted from an article in the Dallas Business Journal.
DFW total housing value doubled in a decade, hitting $589 billion, according to a new analysis by Zillow Group Inc.
That’s the 10th highest aggregate value in the country and more than any other Texas market.
In the past eight years alone, the typical house in North Texas has increased in value by $100,000, or 78 percent, Zillow economist Jeff Tucker said in an interview with the Dallas Business Journal.
Today a persistent shortage of new homes and starter homes has pushed home prices out of reach for many would-be first-time home buyers, he said.
The total value of every home in DFW increased $294 billion in the 2010s, according to Zillow (Nasdaq: Z). The increases bring the total housing market values in DFW to $589 billion.
Most recently, Texas added more housing value than any other state in 2019, thanks in large part to a slowdown across much of California.
The total value of the real estate market in DFW has exactly doubled in 10 years. This is a really big market in the country that managed to combine both rapid appreciation over this last decade and large population growth, meaning construction of new housing. Dallas was able to grow in a fairly inclusive way.
It’s not just more and more people competing for a fairly fixed number of homes, but actually we know population in Dallas, at least through 2018, grew 17 percent in the decade (final decade population numbers are not yet available). That’s a lot for such a big metropolitan area.
How much did home prices rise in the decade in DFW?
Our price index number is up two-thirds in Dallas for the past 10 years. It went from right at $150,000 for a typical home to $250,000 for a typical home. That’s a lot of price appreciation, but it also makes Dallas a fairly affordable place to move.
Where do you see the DFW housing market going from here?
Broadly, the future looks bright for the Dallas market. The economy is incredibly strong. It remains an attractive place of bringing in new people. It’s growing in popularity. It’s avoiding some of the pitfalls of some of the older cities in the Northeast and even states like the state of Connecticut, which are really struggling with their population overall and actually shrinking or basically stagnating. Dallas remains a popular place to go.
What are the hottest home markets within DFW in terms of cities?
Looking at year-over-year price changing, Dallas itself is seeing about 3 percent price growth over the past year. It’s higher than that in Fort Worth at 4.4 percent. Arlington is 5 percent in price appreciation over the year. Grand Prairie is showing up as 5.2 percent year-over-year growth. Those are some of the hottest.
SOURCE: The Dallas Business Journal