The Dallas-Fort Worth Metro Area is a huge stretch of land, encompassing over 9,286-square miles, which is more than Rhode Island and Connecticut combined. It is the most populated metropolitan area in Texas and the Southern United States, and the fourth most populated in the entire United States. It is an economic and cultural hub that is one of the most important parts of the country, with big cities like Dallas, Fort Worth, and Arlington within its limits.
The Dallas-Fort Worth Metro Area is a major area, yet it remains more affordable than the typical high-power American metropolis. Unlike cities like Los Angeles, New York, and San Francisco, homes remain mostly affordable in Dallas. However, there has been a massive migration to Texas in recent years. Texas’ low taxes, affordable real estate, and economic opportunity are bringing in new residents, as Texas led the United States in population growth in 2021.
The Dallas-Fort Worth Metro Area, or DFW, is home to the fourth-largest concentration of Fortune 500 companies of any city in the country and has a GDP that is also the fourth largest in the country. Its status as an economic superpower has drawn in many new residents to the area, drastically impacting the market. Let’s look at some trends impacting the DFW Metro Area’s real estate market.
Booming Texas Economy Spurring Rising DFW Housing Prices
The Texas economy is a powerhouse, and industries from tech to energy have been investing in it at an unprecedented rate. According to a report by Norada, Texas’ economy has been recovering fantastically since the peak of the pandemic. State-wide, the unemployment rate in Texas has declined from 7.1% during the pandemic to 3.9%. There was a 4.67% year-over-year increase of jobs in the state in 2021, which is more than double the typical job growth rate of 2%. To make a long story short, the Texas economy is buzzing.
The increase of money in the state is leading to rising home costs in the DFW Area. In the third quarter of 2021, the median price in the DFW metro area increased 18% year-over-year, with homes going from $300,000 to $354,900. This is significant growth that far outpaces the national average. This is largely because of the surge of money and buyer interest in the state, combined with the decrease of inventory, with housing supply going from 1.88 months’ inventory to 1.28 year-over-year.
2021 DFW Luxury Market the Most Powerful in the State
With an increase of money in the state comes an increase of wealthy buyers. The typical wealthy buyer will find an abundance of top-notch options in the DFW metro area, with massive homes being sold at a relatively moderate price. The appeal of the luxury market in the DFW area is significant, with the luxury market in Texas consisting of homes priced $1 million or more. According to Candy’s Dirt, in the first ten months of 2021, 11,980 homes were sold in Texas for $1 million or more. The DFW market accounted for 3,818 of these homes, which was 31.9% of all of Texas and the most inventory moved in the state.
The number of luxury homes sold in Dallas-Fort Worth was an 80.7% increase from the same period in 2020, a whopping growth that shows the unprecedented number of big-money buyers showing interest in Dallas. This huge number of home sales accounted for over 14% of the home sales in the DFW area during that period, but inventory remains healthy at 2.5 months. Luxury homes are being sold quicker, too, with homes being sold after an average of 55 days on the market, a significant decrease from the 86 days on the market in 2020.
Will This Growth Continue?
Dallas-Fort Worth is a massive area that is one of the most important parts of the country. It has always been a major American city area, but recent years have seen out-of-state buyers flocking to Texas in unprecedented numbers. The appeal of the state as an economic and cultural hotspot has never been higher. Dallas-Fort Worth has been one of the many Texas areas that have benefited from this growth.
The market in Dallas and the areas surrounding it are surging. There are more luxury buyers, more luxury sales, and quicker sales. The prices of homes have risen, correlating with the increasing power of the economy and the decreased inventory. The economy and appeal of Texas show no sign of slowing down, and more wealthy out-of-state buyers are likely to continue to take note. There is no likely reason that the DFW Metro real estate market will slow down in 2022.
