Being ranked No. 3 in hot housing markets in the U.S. means more people are moving to the Dallas-Fort Worth area, but then why are the homeownership rates going down?
According to the Dallas Morning News:
Changing demographics and the area’s dramatic employment gains are playing into the shift toward renting in Dallas-Fort Worth. High home prices also get some of the blame.
During the last six years, the homeownership rate in the D-FW area has dropped by almost 10% points. About 56% of local residents own the roof over their heads, compared with about 64% nationwide.
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.
Texas homebuyers had a median household income of more than $86,000, according to the Texas Association of Realtors, which explains why only 30% of homes sales last year went to first-time buyers. It also explains the lack of Millennials buying. Although Zillow reports that close to 72% of 18-34 year olds would love to own a home, the median age for Texas buyers was 45 last year.
The U.S. employment rate soared in February and companies like Toyota and State Farm are strong employers in the Dallas metroplex. But with a median home price of $200,000, many Dallasites are having to either live in apartments — averaging around $1,500 a month — or are forced to live in the suburbs and commute to work.
Could this mean a rise in apartment renting?