When Will This Rocket Called Dallas Real Estate Come Back Down to Earth?
Since 2010, the Dallas metro area has experienced a massive influx of transplants. This has naturally led to a steady rise in Dallas' real estate growth with home purchases and rent prices, but the more important question you should be asking is “Why?”
The past eight years, Dallas has seen a 15.15 percent increase in population. That means it is outpacing the national population by 186 percent, a fascinating feat that only cities like Denver and Orlando can match. Plain and simple, with rising cost of living in major metropolitan cities like LA, Dallas, even with its own rising living costs, is a fantastic place to move for financial reasons.
There’s also a cultural renaissance fueling Dallas' real estate growth, making what was once considered a cultural dessert into a mecca. Backtrack almost two decades ago when companies like Boeing were snubbing the 214 area code for more luxurious cities like Chicago and New York. But now, with the revitalization of the downtown area with massive outdoor parks, swanky opera houses, and a growing art scene, Dallas has morphed into a powerhouse for the arts and entertainment. Now, people with fine tastes looking for a good time can easily find it in the downtown and surrounding areas.
The median home value in Los Angeles was $686,100 while Dallas real estate saw a 1-year 11.4% increase and barely broke the $200,000 mark this year. When you consider the city’s cultural uprising, and jaw-dropping buying power, it really should not come as a surprise why Dallas has become a great escape from the overpriced Los Angeles.
As a result of this changing landscape, Big Business has successfully found refuge in Big D. Just look at this fancy infographic:
That is one heavy, diverse set of billion-dollar companies all now headquartered in Dallas, a city usually known more for their energy sector than Mediterranean fast-food franchises.
With this barrage of S&P 500 companies, hundreds of thousands of jobs have been created in the past year alone. Just for perspective, the entire list of national jobs grew by 75,000 last month.
With all this being said, there is a paradox occurring between the rising Dallas real estate growth prices and a cooling down in the market. In most hot markets, home builders and developers do not have the proper resources to match growing demand, leading to overpriced homes and rent. A good example where this issue is occurring is San Francisco. However, local home builders have been working hard to meet this strong demand fueling Dallas real estate growth. By accurately increasing the supply of new homes, the market has been stabilizing. This balancing act indicates a coming plateau that will keep Dallas affordable in the near future.
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