Metrostudy: 1Q2016 DFW home starts focus on higher price rangeMetrostudy: 1Q2016 DFW home starts focus on higher price rangehttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=130202016-05-03T05:00:00Z2016-05-03T21:10:00Z

​​​​DALLAS-FORT WORTH -  According to Metrostudy's first quarter 2016 survey of the DFW area's housing market, homebuilding is booming in the area with 1Q2016 new home starts up more than 39 percent from last year, but none of that growth is coming at entry-level prices. 

Metrostudy's report showed that there were 7,015 new home starts in 1Q2016, which is up 39.1 percent from the same time period last year, although that data was affected by the bad weather during that quarter.

But most of that growth is coming in higher-price brackets.

If this trend continues, many Millennials and other young would-be homebuyers could be forced to wait to buy their first home because there's simply nothing they can afford.

"First quarter starts data presents further evidence of Dallas-Fort Worth's market shift in price," said Paige Shipp, regional director of Metrostudy's Dallas office. "Historically, most of DFW's starts and closings occurred below $200,000. The new normal reflects a meteoric rise in starts above $200,000."

Housing starts to be priced between $300,000 and $349,999 jumped 81.2 percent, which is almost twice the increase in closings.

On the other hand, starts below $200,000 dropped 14.6 percent from last year and closings plummeted 31 percent, Shipp said.

And there's not much hope on the horizon for those looking for a new home priced under $200,000.

"Due to rapidly rising land and development costs, developers argue there is little hope for the revival of the sub-$200,000 new-home market," Shipp added. "This will remain an issue until municipalities, developers and builders understand and deliver higher-density lots and smaller homes to the market."

Metrostudy's report showed that while buyers looking for new homes in the DFW area that don't carry a hefty price tag may be left relatively hopeless, builders are responding to the price points that carry the highest demand, and right now, that's between $250,000 and $400,000.

According to Metrostudy's report, housing starts in that price range made up 44.4 percent of the first quarter's total.

But DFW buyers don't just want homes priced between $250,000 and $400,000 as Metrostudy's report showed that a "whopping" 31.6 percent of starts occurred above $400,000. ​

Dallas-Fort Worth-Arlington
http://www.housingwire.com/articles/36878-hey-dallas-millennials-better-get-used-to-rentingRead more at {Source}

 Search NewsTalk Texas