A study by Trulia found that Dallas’ job, wage growth keeping home prices low – Dallas Business Journal

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A study by Trulia found that across the country, residential real estate inventory has slumped, prices are increasing, and the quality of starter homes is declining.

But the real estate website’s report also discovered Dallas is defying those trends, with the local median listing price of $356,999 rising just 0.5 percent year over year.

Comparatively, the national average home price rose 4.6 percent percent between March 2017 and March 2018.

Dallas’ low price increase is thanks largely to the city’s housing pipeline. Last year, 47,000 residential building permits were issued in the city, showing Dallas is building to keep up with demand, said David Weidner, managing editor with Trulia and author of the report.

With supply quickly hitting the market, prices are staying low.

“Texas is building a lot, and Dallas is the leader in Texas,” Weidner added. “The inventory is good, so prices aren’t going up.”

The city’s job and wage growth, at 3.8 percent and 3.2 percent, respectively, are also allowing residents to invest in new homes. With that growth, and Dallas’ strong economy, it’s unlikely the city will experience problems with overbuilding, Weidner said.

“If we do into a recession, those wage gains and jobs keeping the real estate market chugging along disappear,” he added. “In Dallas, there’s a possibility that you could have empty homes on the market, but it would take quite a bit of disruption in the economy for that to happen.”

Job and wage growth are also likely to keep home prices low as residents continue to buy houses.

“When you talk about permits being issued, that suggest that there’s more homes still to come,” Weidner said. “If you have homes that are coming to market, it would suggest that prices really wouldn’t go up fast.”

While listing prices aren’t rapidly rising in Dallas, home values are. Trulia found that Dallas values rose 15 percent in the past year, which suggests much of the housing coming to market isn’t large or expensive homes.

“There’s probably a lot of multifamily housing coming to the market,” Weidner said of the trend. “That’s not necessarily a bad thing that home values are up so much, it simply means that people’s investments are appreciating.”

Trulia found other Texas cities are also experiencing little or no home listing price increases. San Antonio logged a 5.4 percent price loss over the past 12 months, and Austin logged a 3.4 percent loss.

That could be because both cities are experiencing booming job growth, creating more demand for housing, Trulia said.

Similar to Dallas, Houston saw a 0.4 percent increase over the past year, with more than 42,000 building permits issued. However, due to Hurricane Harvey destroying a large number of homes, Trulia has noted it as a market to watch.

To see the 10 markets where home prices are falling or growing at a lower rate, click through the slideshow above.

Largest North Texas Homebuilders

Ranked by # of Local New Home Closings in 2016

Rank Business Name # of Local New Home Closings in 2016 1 D.R. Horton Inc. 4,320 2 Highland Homes- Dallas LLC 1,456 3 Lennar Corp. 1,321 View This List

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