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DFW Housing Market News and Trends
| STORM CLOUDS ON THE HORIZON? Soaring Home Prices May Hurt Texas' Competitive Advantage, Says Dallas Fed. |
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Soaring home prices and a tight supply of starter homes have eroded Texas’ cost-of-living advantage, according to the latest issue of the Federal Reserve Bank of Dallas’ Southwest Economy. “Since the housing recovery began in 2011, Texas has seen unprecedented home price appreciation with home price gains here outpacing those nationally,” said Dallas Fed economist Laila Assanie in a video accompanying the report’s release. “This run-up in home prices is unusual for Texas, where construction tends to respond quickly to an increase in demand because of the state’s vast supply of flat land and relatively few building regulations versus other large states.” Housing affordability has also declined, Assanie writes in “Texas Housing Market Soars to New Highs, Pricing Out Many.” While Texas’ nominal median existing-home sales price rose 34 percent from 2010 to 2015, median income only increased 14 percent. In addition, the supply of starter homes—those priced below $250,000—shrank considerably between 2011 and 2016. “Declining housing affordability in the state has eroded the cost-of-living advantage, calling into question whether Texas can maintain its long-term economic and population growth that has often led the nation,” Assanie said. |
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Posted on Tuesday, April 21st, 2017 at 10:06 am by H. David Ballinger |
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