Dallas-Fort Worth’s market for newly built homes is catching up to Austin’s market — and not in a good way.
New data from Dallas-based HomesUSA.com shows that in June, the average price of a newly built home surged past the $500,000 mark for the first time, landing at $501,327. Among the state’s four major metro areas, Austin led this category in June ($541,079), with Houston at $419,573 and San Antonio at $391,577.
“Despite all of the market challenges — from labor shortages to supply chain and delivery issues — Dallas area builders continue to show steadfastness and resilience in markets that still remain persistently strong,” says Ben Caballero, CEO of HomesUSA.com.
In DFW, the average price for a new-construction home jumped 20.5 percent from last June to this June, according to HomesUSA.com. From this May to this June, the average price went up by 3 percent — the largest increase among the state’s four major metro areas.
Those numbers compare with:
- A 22.2 percent year-over-year jump in the average price of a newly built home in the Austin area, and a less than 1 percent month-over-month decrease.
- An 11 percent year-over-year jump in the average price of a newly built home in the Houston area, and a less than 1 percent month-over-month increase.
- A 23.7 percent year-over-year jump in the average price of a newly built home in the San Antonio area, and a 2.7 percent month-over-month increase. San Antonio’s year-over-year figure was the highest among the state’s four major metros.
Even amid escalating home prices, rising interest rates for mortgages, and nagging demands confronting homebuilders, Caballero believes construction of new homes in Texas will maintain a torrid pace.
“Due to its business-friendly environment, no personal income tax, and geographic location, I expect Texas to continue leading the nation in home starts,” he says. “The continuing migration from large population centers in the North, Northeast, and West Coast markets will cause those areas to experience a disproportionate share of the coming housing slowdown.”
Source: Dallas Culture Map