Are you so ready to grab the keys to a new place? If so, look no further than the Dallas Fort Worth area: DFW has plenty of promising opportunities for anyone looking to enter the housing market. Whether you’re hoping to rent your first house or buy your forever home, you can find just what you need in DFW.
Before the fun stuff — like choosing what color to paint the bedroom wall or deciding just what type of couch complements your new living room — you have to actually find your ideal property. To do that, you need to have a little background on what’s going on locally — so here’s the 411 on the DFW housing market.
Are you considering entering the DFW housing market?
In DFW, like in any area, the housing market is made up of people buying, selling or renting real estate. Knowing how to navigate a landscape with so many different stakeholders is key to making an investment you can feel comfortable about — and, in the case of your dream home, feel comfortable in.
Here’s what you need to know to enter the DFW housing market like a pro.
The market is hot
The DFW housing market is hot, as in plenty of cities across the country — but just how hot is it?
According to the National Association of Realtors, the DFW median home price in the first quarter of 2021 was $300,000. Compared to other cities in the nation, that’s still an affordable price — but for DFW, it’s setting records. The Dallas Morning News reported that prices have increased 20% since 2020. However, 2020 set records of its own due to increasing demands during the pandemic: 60% of houses on the market received multiple offers in June 2020, according to Dallas’ D Magazine.
All of this, plus the comparatively low cost of living in Texas — according to Salary.com, it’s almost 90% cheaper than San Francisco, about 80% cheaper than New York City, and almost 20% cheaper than Chicago — makes Dallas a promising area, if not one of the best cities, in which to invest in the real estate market as of 2021.
North Texas mortgage trends
In its Affordability by County tracker, the NAR noted that mortgage payments in Dallas County are around $867, while they were at $827 in 2020. In Potter County, where Amarillo is located, monthly mortgage payments have increased $15 since 2020. Overall, mortgage payments are trending higher in North Texas — although Lubbock County payments fell by $13 between 2020 and 2021.
As a home buyer or real estate renter entering the DFW housing market, the takeaway is this: You may be looking at higher house prices, but affordable mortgage rates and a comfortable cost of living make Dallas your new dream city.
The state of home prices in DFW relative to the rest of Texas
The home buying process in Texas looks different depending on where your ideal neighborhood is located — for example, houses near a major city like Dallas will be worth more, which means the DFW area is a great place to invest. The process also depends on whether you want to rent or buy your new home. If you’re ready to buy, it’s best to start your home search with Bungalo’s® all-in-one platform, offering built-in tools to keep track of all your options.
Now, if you’re thinking the record highs in the Dallas real estate market are impressive, just wait — they may not even be done fluctuating. According to The Washington Post, homebuyers should expect housing affordability to decrease as demand increases and the housing shortage continues. Looks like home prices won’t be stabilizing any time soon.
This doesn’t necessarily mean that the DFW housing market will crash. It all depends on how many new homes are built to keep up with demand, how buyer habits evolve over the coming months and years, and how the national economy continues to respond to the pandemic.
What is it like to live in Dallas?
The population growth in the DFW area proves that people from all over the country have decided that Texas is a great place to live. Here’s a look at why everyone’s so eager to call Dallas home.
Cost of living in Texas
At the time of this writing, AAA reported Texas’ average gas price at $2.83. That’s significantly lower than western states like Idaho, where gas costs $3.80 per gallon. In fact, Texas gas prices are the second-lowest in the country — a significant sign that the cost of living in Texas is crazy low.
Opportunity
According to the Bureau of Labor Statistics, the Dallas area has gained nearly 200,000 jobs since May 2020 — which means opportunity abounds. The source calls trade, transportation and utilities the largest employment supersector in Dallas and surrounding areas, although most of the year’s gains were in the leisure and hospitality industry. Plus, with a short commute to major companies like Southwest Airlines and AT&T, you’ll have access to any job you could ever want.
Character
According to CultureMap Dallas, Dallas was ranked the #1 most family-friendly city in 2018. This is good news for home buyers, as it means neighbors are friendly, entertainment is plentiful and there’s always someone willing to answer your questions about the area.
What’s it like to live in Fort Worth?
Although Dallas has a lot to do with North Texas’ population growth, Fort Worth is not to be forgotten when it comes to metro areas for real estate investing. It’s a 44-minute drive from Dallas to Fort Worth — and in those 44 minutes, you’ll pass into a culture that, while similar, has a personality all its own.
Here are a few ways Fort Worth is different from Dallas:
- There’s more space. The smaller population in Fort Worth means there aren’t as many people in the parks or cars on the road.
- Unique character is everywhere. According to the City of Fort Worth, the area’s nickname is “Where the West Begins,” emphasizing its roots in the classic American West.
- You’ll feel a homey vibe. While Dallas is bursting with eclectic art and trendy entertainment, Fort Worth is more about hometown charm and casual fun.
Enter the DFW housing market with confidence
Now that you know what’s happening with DFW real estate, it’s time to get out there and find the house that’s perfect for you. When buying, Bungalo certifications make it easy to know you’ll be moving into a well-maintained, solidly built home that even comes with guarantees and extra warranties — and, speaking of preparing for the future, the housing market is only getting hotter. There’s no better time to invest!
If you’re ready to reach out and grab the keys to a brand-new place, see what Bungalo listings are waiting for you in DFW.
This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Bungalo always encourages you to reach out to an advisor regarding your own situation.
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