Explore median home costs, the future of Dallas—and why this bustling metropolis is one of the fastest-growing cities in the nation.
Are you considering relocating to Dallas? This Texas city is a wonderful place to live, raise children, and build a career. If you’re planning to make a move, you’re likely wondering what type of home you can afford in the city. If buying Dallas real estate is on your radar, here’s what you need to know about the current real estate market and what you can expect in the future.
Why Do People Love Dallas?
Dallas has recently become one of the fastest-growing cities in the United States,
so it’s safe to say it’s a popular place for people to relocate! Here are just a few of the reasons why people love living in Texas — and why you probably will, too!
- Family-friendly. Parents love Dallas with all its enriching and fun activities that are perfect for the entire family. Along with the Perot Museum of Science and Nature, Dallas is also the home of the Dallas Zoo, Dallas Arboretum and Botanical Gardens, and Six Flags Over Texas.
- Unique neighborhoods. When you’re perusing Dallas homes for sale, make sure you cruise through some of the most eclectic and cool neighborhoods in the country, including the Deep Ellum (great bars), Arts District (museums and performing arts), and Knox-Henderson (fun nightlife and awesome food.)
- An abundance of jobs. With a low unemployment rate of 7.6%, plenty of growth is expected in the future, and the fact that 22 Fortune 500 companies call Dallas home means the job market is strong and will likely continue to stay that way.
- The affordability. When you compare Dallas to other major metropolitan areas in the country, it’s much more affordable. Groceries are 5% lower in price than the national average, transportation is 1% lower, and, though housing expenses are 5% higher than the national average, they are still well below cities like New York, Miami, and Los Angeles.
- The fantastic weather. If you can withstand a little hot weather in the peak summer months, you’ll be rewarded with mild, mostly snowless winters. This means expanded outdoor opportunities and none of the inconveniences of snow and ice.
- Plenty of sports teams to cheer for. Dallas is the home of Cowboys (NFL), Stars (NHL), and Mavericks (NBA). In addition to major league action, it’s also packed with minor league, college, and amateur teams to follow.
What Does the Future of Dallas Look Like?
If you’re considering a move to Dallas and investing in Dallas real estate, you’re not just interested in the present — you also want to know what the future holds. Consider these projection stats when deciding whether relocation to the Dallas metro area is right for you:
- The total housing sales for Texas rebounded in the latter part of 2020, and the Residential Construction Leading Index rose amid increased building permits.
- Experts agree that Dallas has a robust housing market, and some even refer to current (and future) conditions as a housing boom. Though this does mean housing costs will rise, it also means the economy in Dallas is strong, and home values will increase. Values have already gone up 3.2% over the past twelve months and are projected to rise by 6.1% in the next year.
- Both population and employment rates are rising and are projected to continue rising in 2021.
- Nearby Plano and McKinney have seen an expansion in businesses in late 2020, especially in the technology field. With the help of the McKinney Innovation Fund, companies such as Sigmetrix and LocuMatch are making the area home and adding to the already strong job market.
How Much Do Dallas Homes for Sale Cost?
Dallas real estate is currently experiencing a seller’s market, meaning housing prices are up and demand is higher than supply. However, that doesn’t mean a prospective buyer can’t still get the home of their dreams for a reasonable price. At the beginning of 2019, the median price for a Dallas home was $201,000, up 13% from 2018. They have risen by a modest 1.9% in the past twelve months. The forecasted median prices in 2021 are hovering around the $210,000 mark, making them quite affordable when compared to the median prices in Los Angeles ($648,760), New York ($624,000), and Chicago ($275,000).
Wondering what your money will get you if you buy in Dallas? Most real estate agents agree that the most in-demand price range in Dallas is in the $300,000 range. For that price, you could buy a 2,600 square foot home built in the 1980s in the suburb of Garland, a 2,000 square foot home built in the ‘60s or ‘70s in Richardson, or a new construction home in Frisco or McKinney.
The average time on the market for Dallas homes for sale was 58 days, slightly down from 2019. Closed sales increased by 20.4%, and the total active listings dropped by 29.5%, which supports the claim of a seller’s market. Foreclosure statistics show a lower amount than the national average, another positive sign for the Dallas economy as a whole and a ray of light for the city during the difficult pandemic.
Considering renting a home instead of buying? At this point in time, renting is actually less expensive than buying in Dallas. The demand for rental units has increased by 14% as many young professionals flock to Dallas to build their careers and raise their families. However, those who rent instead of investing in Dallas real estate will not enjoy the increasing home values that are expected to continue through the coming months and years. If you plan to put down roots in Dallas, it makes sense to invest in a home and reap all the benefits that come from homeownership.
Are you ready to make the move to Dallas? With its variety of attractions, warm weather, and affordable housing, Dallas is one of the fastest-growing cities in America for a reason. Take advantage of historically low mortgage interest rates and buy a home in a city with a thriving future.