Exploding population sends rents soaring in Dallas
Can housing starts close the gap?
With Dallas being one of the hottest housing markets in the U.S. and with an estimated 11,000 people moving to the Metroplex each month, it's becoming more of a seller and landlord market as rents continue to rise.
According to a recent study by the Texas A&M Real Estate Research Center, DFW’s population could double in the next 25 years.
As more people move to the area, housing supply just can’t keep up, pushing potential homebuyers into the rent market.
According to NBCDFW, Russell Berry, President of MetroTex Association of Realtors said that the rental market is “really hot right now.”
"Now we're kind of appreciating to the level of where other large cities like Dallas are. Month after month, places that do have rentals, the prices have been skyrocketing," said Berry.
NBCDFW also states that the average rent is highest in relatively dense urban areas. For example, the average rent in Downtown and Uptown Dallas runs around $2,500 a month.
A recent CoreLogic report showed home prices rose 6.9% annually nationwide, but homeowners looking to buy in North Texas face an even tougher market, with home prices up 10% over last January, according to the Dallas Morning News. Only home prices in the Austin area were higher in the Lone Star state.
According to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development, home starts in the U.S. rose 5.2% and increased with a seasonally adjusted annual rate of 1.18 units. An improvement from January’s estimate of 1.12 and is 30.9% above February 2015’s rate of 900,000.
Hanley Wood company Metrostudy breaks it down further, and warns that starts may oversupply in some DFW price ranges if care is not taken.
According to this report: "Metrostudy’s 4Q15 survey of the Dallas-Fort Worth housing market showed that builders finished 2015 strong with 26,779 starts for the year, 11.4% higher than 2014. Quarterly starts numbered 6,939 in 4Q15, down 16.7% from 3Q15. Annual closings rose to 23,912 homes in 2015, 9.3% more than in 2014. Unlike starts, quarterly closings grew by 1.9% over 3Q15."