More people own houses than ever before in North Texas, yet there has been a dip in homeownership in the areas of Dallas and Fort Worth. So what is the reason behind this dip? The area has seen dramatic employment gains, as well as a changing demographic which has led to the shift that has been seen in renting.
Due to this influx, there has also been an increase in home prices. Even though there are currently more homeowners in North Texas than ever before, the area is still nearly 10 percent lower than the rest of the nation. With 56 percent of residents being homeowners in the area, in comparison to 64 percent of the population nationwide, North Texas remains at one of the lowest percentage rate among major U.S. cities.
As of January, home prices in the area have increased up to 10 percent since early 2015, hitting a record high for the area. New home in the area are exceeding $300,000, while pre-owned properties are averaging around $200,000.
According to the Texas Association of Realtors, the median household income for Texas homebuyers is now over $86,000.
With a shift in perception about renting vs. owning, Millennials’ play a large role in the dip, as most Texans in there 20’s are renters. Apartment living, which was one a temporary lifestyle, has become a permanent lifestyle for many. Apartment communities offer high quality and superior amenities in comparison to what they once were.
New Dallas-area apartments average more than $1,500 a month, which equates to more than a mortgage payment on a house that is over $250,000. However, many of the younger residents will choose to pay rent than to move into the suburbs where they can afford to purchase a home.
With the booming job market in Dallas, many younger individuals are moving in and choosing to rent, creating an influx in renting and apartment construction. Last year, about 20 percent more apartments were built in the D-FW area than single-family homes. Even more apartments are under construction today.