Tough time looking for a new home under $200K in DFW?Tough time looking for a new home under $200K in DFW?https://www.recenter.tamu.edu/news/newstalk-texas/?Item=136262016-06-28T05:00:00Z2016-06-28T20:00:00Z

​​​​​​​DFW - It used to be fairly easy to find a new home for under $200,000 in North Texas. 

But according to Metrostudy​, first quarter 2016 data show a “new normal,” reflecting a meteoric rise in starts above $200,000, meaning it’s harder than ever to find a new home in the sub-$200,000 price range.

With rapidly rising land and development costs, developers tell Metrotex ​there is not much hope for the revival of the sub-$200,000 new home market in North Texas. 

According to Dr. James Gaines, chief economist with the Real Estate Center at Texas A&M University, “Affordability and workforce housing are going to be a major issue—we are not building enough houses in the $150,000 to $200,000 bracket.”

The greatest demand and strongest sales for the 1Q2016 are between $250,000 and $400,000, according to Metrotex.
Housing starts in this price range accounted for 44.4 percent of 1Q2016’s total starts.

But here’s a surprise: a whopping 31.6 percent of starts occurred above $400,000. 

As North Texas home prices continue their upward climb, and higher priced lots come to market, it will be important for builders to deliver new homes based on buyer demand.
Dallas-Fort Worth-Arlington

​See Dallas Housing Market Research. ​

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