Homebuilders in the Dallas-Fort Worth metroplex continued to see a rise in demand for new houses through 2021. The DFW housing market is thriving! It doesn’t seem like this upward trend will end anytime soon. Despite the housing supply shortage that DFW experienced earlier in 2021, the housing market still managed to see great results. Building supplies are becoming available, which has also sped up the building process for new construction.
Current DFW Housing Market Conditions
Buyers are still taking advantage of lower mortgage rates. However, the current DFW housing market conditions tend to favor sellers. With so many people flocking to Texas, particularly the DFW metroplex, it can be pretty competitive with bidding wars. Sellers don’t have to worry about how long it will take for their home to sell once it’s listed.
Why Are So Many People Moving To DFW?
It may seem like more people relocated to DFW in 2021 due to the DFW housing market, but the truth is, people have been flocking here for quite a few years. The number one reason why is strictly business. The International Economic Development Council often surveys corporate executives. Executives continue to cite the overall business climate, favorable tax situation, the overall pro-business regulatory environment, and talent as the key drivers. In particular, there is a mass exodus coming from silicon valley.
The DFW housing market benefited during the first half of 2021 as California lost 53 of its corporate headquarters to other locations across the country. Almost half of those corporate headquarters relocated to Texas. In the last six years, the last five Fortune 500 companies to relocate their headquarters to DFW have all come from California.
Dallas, in particular, is leading the nation in terms of relocation. The top reasons why people are moving to Dallas are:
Finding employment is much easier in Dallas. Many of these jobs pay above the national average. Dallas is home to the top Fortune 500 companies.
Low Cost of Living
Unlike most large cosmopolitan cities, Dallas still has a relatively lower cost of living. Rent is lower compared to New York City and San Francisco.
Affordable Housing and Land
The land supply is still abundant, and Texas has fewer regulations. It’s easy to get a building permit for the construction of your home. Existing homes are also more affordable than other large cities throughout the United States.
Texas is one of the few states in the US where there is no personal state income tax. There are plenty of business tax incentives, as well. With the lower cost of living, higher salaries, and less income tax, you can stretch out more of your paycheck!
This list is primarily for financial reasons, but there are plenty more reasons why many people are relocating to DFW. The area is rich in diversity and culture, boasts beautiful weather all year long, and has great schools and universities. DFW is a great place to raise a family.
DFW has become the home to several corporate headquarters and large operations centers in recent years. Companies such as Charles Schwab, Deloitte, JP Morgan Chase, Liberty Mutual, State Farm, McKesson, and Toyota recently relocated or significantly expanded their operations there. These companies enjoy the lowest corporate tax rate in the US, leading to increased corporate profits of 5-7%.
DFW Housing Market and What’s Trending For 2022?
The nationwide housing forecast for 2022 will see homebuyers having a better chance of finding a home. However, there will still be stiff competition. Suburbs will still be the preferred location for housing. Millennials are ready to buy now, especially as many are relocating to DFW!
The COVID-19 pandemic created more flexibility in the workplace, with many offices allowing remote work or hybrid schedules. This caused a shift in more people relocating to the suburbs rather than the city, as they no longer need to be close to the office. The home-buying demand will remain strong despite the ongoing pandemic and economic downturn.
While existing home inventory will remain low due to population increase, builders are ready for new construction. The DFW economy will remain stable and thriving due to low unemployment rates and so many job opportunities as more corporations relocate there.
Get in touch with a realtor who knows the DFW housing market and will assist you whether you are buying or selling this year.