Housing affordability, one of the biggest drivers of recent growth in Texas, is disappearing.
Over the past decade, housing in the Dallas-Fort Worth, Austin, San Antonio, and Houston metropolitan areas has become more affordable relative to incomes than Chicago and is approaching New York's affordability levels, according to one study. It is said that there is dallas morning news Analysis of National Association of Realtors and U.S. Census Bureau data.
“Texas still has significant advantages and will continue to grow because of those advantages,” said Daniel Oney, an economist at the Texas Real Estate Research Center at Texas A&M University, who said he expects local real estate agents to do the same. The analysis was shown. Metrotex Association of Realtors Event, October 6th. “But we're not as attractive as we used to be to certain people.”
news calculated affordability ratios for major cities by dividing the median home price in the second quarter by each community's median household income in the previous year. After calculating affordability for this year, we applied the same formula to 2013 to show the changes over the decade. Lower ratios indicate greater affordability and provide a glimpse into how housing prices affect workers.
Houston and San Antonio match Dallas and Fort Worth's affordability ratios, and Austin's housing is slightly less affordable.
Relative to median incomes, housing in Dallas-Fort Worth remains dramatically more affordable than housing in San Francisco and Los Angeles, where many immigrants move. The San Francisco area had the least affordable housing, followed by Los Angeles, New York City, and Phoenix.
But over the past decade, incomes in Dallas-Fort Worth have increased by 45% and median home prices have more than doubled. Rising interest rates from 2022 onwards caused house prices to fall slightly, but did little to offset the pandemic-era gains.
For example, some people may find better deals in Midwestern cities.
The median household income in the Washington D-FW and Chicago areas was approximately $83,000 in 2022. The median sales price for existing homes in Dallas-Fort Worth in spring 2023 was about $390,000, about $27,000 higher than Chicago's median price of about $363,000. National Association of Realtors.
In 2013, the median home price in Dallas-Fort Worth was $182,000, about $20,000 less than in the Chicago area.
The housing boom during the COVID-19 pandemic has shifted the share of more affordable homes in the D-FW market, leaving many young buyers unable to find starter homes.
The number of D-FW homes selling for less than $200,000 was already declining in the years before 2020, but since then homes priced under $300,000 have rapidly become rare. Ta.
In 2019, homes in the low $200,000s accounted for 20% of the market, according to the Texas Real Estate Research Center. In 2022, that proportion was only 6.5%. Although the share of homes priced in the low $200,000s fell from 17% to 10.6%, the housing boom has increased their share of high-priced home sales.
Real estate agents working with clients looking for homes in North Texas have seen their clients struggle with changes in affordability, including pausing their home search or flocking to other areas. I've been doing it.
Todd Luong, a Frisco real estate agent with Re/Max DFW Associates, has previously received calls from out-of-state buyers looking at homes, but this year many of those people are instead He said he chose housing outside the area. .
Luong said one of his customers, a young couple, ended up purchasing at Terrell. Another buyer thought he could get a better deal if he moved to Denver instead of leaving California.
“That's something we haven't heard for years,” Luong said. “I always thought it was much cheaper than other parts of the country, but apparently that's not the case anymore.”
Courtney Bailey, a real estate agent with Douglas Elliman in Dallas, often works with clients in California. He said some of those buyers were hoping to get more dollars in Texas, but the rapid rise in prices changed their value for money. Stated.
“It's not exactly what they dreamed in their heads,” Bailey says. “Maybe what their friends had two years ago is not something they can afford now.”
