Dallas’ booming real estate has put homes out of reach

[TampaChinnodu]

Too much of a good thing can become a problem.

Soaring home values in the Dallas area have lifted the net worth of thousands of families. But for many renters and others on the outside, a new home in Dallas is now beyond their financial reach. That’s discouraging for entry-level buyers, and it could create headwinds for an economy whose low cost of living has attracted newcomers for decades.

In a measure of affordability, the Dallas-Plano-Irving area has lost major ground. In 2010, nearly 80 percent of new and existing homes sold in the area were affordable to families earning the median income. By late 2016, just 50 percent of the homes were considered affordable.

 

That’s the lowest score for Dallas since at least 1991, when the National Association of Home Builders/Wells Fargo Housing Opportunity Index was launched.

The explanation? Since 2010, the median price of homes sold here increased 77 percent while median income rose about 4 percent.  Many factors contributed, including higher land costs, more home upgrades, and community restrictions on density and square footage.

 

A labor shortage also has delayed projects and driven wages to surprising heights. In Collin County, the average pay for workers in residential construction approaches $98,000 a year, a reflection of higher rates and plenty of overtime.

Dallas is still a much better value than San Francisco, Los Angeles and New York. But they’re not our only rivals for corporate relocations and college grads. Chicago, Atlanta, Denver, Phoenix and most other cities have a more affordable proposition today.

The North Texas economy keeps rolling on, because there’s more to a region’s success than home prices. Yet affordability remains a concern for buyers and builders, and improvements can be made.

Some builders are reducing lot sizes, square footage and features, according to the Federal Reserve Bank of Dallas. In 2014, D.R. Horton Inc. introduced a line for entry buyers that has an average price of $220,000. It accounted for 29 percent of Horton closings in the latest quarter, evidence of demand for an affordable product.

More communities could approve cost-saving proposals, such as putting more homes per acre. Customers and builders could trim amenities that drive up prices.

 

 

There’s a role for Washington, too, starting with creating a modern, flexible immigration system. Mexicans and other foreign-born workers fill almost half the construction jobs in Texas, and that pipeline has been shut off,largely because of tough border policies.

Over a decade ago, when another housing boom was underway, immigrants flocked to Texas and the state’s housing prices never grew faster than the nation’s. Now we’re leaving the U.S. average far behind.

Who will pay the price? Only those who can afford it.

[BulletBaskar]

ilage perigithe sontha illu konadam kastame dallas lo

[TampaChinnodu]

1 minute ago, BulletBaskar said:

ilage perigithe sontha illu konadam kastame dallas lo

Already kashtam current prices tho, If both wife and husband are not working. 

East facing home ite forget about it inka. 

[boeing747]

18 minutes ago, BulletBaskar said:

ilage perigithe sontha illu konadam kastame dallas lo

Weighttting for it. Desi gallu taggutaru appudu

[manchivaadu]

On 5/14/2017 at 11:45 AM, boeing747 said:

Weighttting for it. Desi gallu taggutaru appudu

nuvvu kooda desi ye ga mari

[princeofheaven]

On 5/14/2017 at 2:24 PM, TampaChinnodu said:

Too much of a good thing can become a problem.

Soaring home values in the Dallas area have lifted the net worth of thousands of families. But for many renters and others on the outside, a new home in Dallas is now beyond their financial reach. That’s discouraging for entry-level buyers, and it could create headwinds for an economy whose low cost of living has attracted newcomers for decades.

In a measure of affordability, the Dallas-Plano-Irving area has lost major ground. In 2010, nearly 80 percent of new and existing homes sold in the area were affordable to families earning the median income. By late 2016, just 50 percent of the homes were considered affordable.

 

That’s the lowest score for Dallas since at least 1991, when the National Association of Home Builders/Wells Fargo Housing Opportunity Index was launched.

The explanation? Since 2010, the median price of homes sold here increased 77 percent while median income rose about 4 percent.  Many factors contributed, including higher land costs, more home upgrades, and community restrictions on density and square footage.

 

A labor shortage also has delayed projects and driven wages to surprising heights. In Collin County, the average pay for workers in residential construction approaches $98,000 a year, a reflection of higher rates and plenty of overtime.

Dallas is still a much better value than San Francisco, Los Angeles and New York. But they’re not our only rivals for corporate relocations and college grads. Chicago, Atlanta, Denver, Phoenix and most other cities have a more affordable proposition today.

The North Texas economy keeps rolling on, because there’s more to a region’s success than home prices. Yet affordability remains a concern for buyers and builders, and improvements can be made.

Some builders are reducing lot sizes, square footage and features, according to the Federal Reserve Bank of Dallas. In 2014, D.R. Horton Inc. introduced a line for entry buyers that has an average price of $220,000. It accounted for 29 percent of Horton closings in the latest quarter, evidence of demand for an affordable product.

More communities could approve cost-saving proposals, such as putting more homes per acre. Customers and builders could trim amenities that drive up prices.

 

 

There’s a role for Washington, too, starting with creating a modern, flexible immigration system. Mexicans and other foreign-born workers fill almost half the construction jobs in Texas, and that pipeline has been shut off,largely because of tough border policies.

Over a decade ago, when another housing boom was underway, immigrants flocked to Texas and the state’s housing prices never grew faster than the nation’s. Now we’re leaving the U.S. average far behind.

Who will pay the price? Only those who can afford it.

just call and say @Kyathy for less price

[Luke]

26 minutes ago, princeofheaven said:

just call and say @Kyathy for less price

 

[nrikittu]

[icecreamZ]

On 5/14/2017 at 11:45 AM, boeing747 said:

Weighttting for it. Desi gallu taggutaru appudu

[Bhai]

 కేడి గాడి కేడి బుద్ధులు:  భూమిపై స్వర్గాన్ని నిర్మిస్తాం

[Kyathy]

2 hours ago, princeofheaven said:

just call and say @Kyathy for less price

That should work if needed t email me 

[boeing747]

4 hours ago, manchivaadu said:

nuvvu kooda desi ye ga mari

 

 

4

anduke Dallas lo undatledu ledu..

[Kalam_Youtheman]

TX NJ CA worst bhayya... full of desis and house prices worth kakpoyinaaa chaaala expensive chepthaaaru endhukante desis ki easy ga loan vasthaadhi..east facing home ki oka $30k extra aina no problem antaaru ani... Va lo kuda same... overnight ki neeeku east facing sold ayyipoyi untaadhii.... ila open cheyyagaaane ala close....endho ento..

MD is booming now.... desis thakkuva but development ekkuva untundhii compared to VA... VA lo illluu ante ashburn which is 50 miles away from DC.... rojy poddhunna school bus ekkinattu bus ekkali...2 hours road paina journey....  but still desis are buying homes ashburn VA lo ne endhukante desi comuunity ekkuva ani.. malli antaaaaru enti desis thegaaa coming to ashburn ani.....

[crazymatta]

ficha lite banks isthunaru veelu teesukoni illulu kontunaru.. already 7yrs back ayindhi ayina em nerchukoledu naa matta

[Srimantudu]

On 5/14/2017 at 2:28 PM, TampaChinnodu said:

Already kashtam current prices tho, If both wife and husband are not working. 

East facing home ite forget about it inka.