Citing a report by housing-market data service Metrostudy, HousingWire says anyone looking for a brand-new starter home for under $200,000 in the Dallas-Fort Worth area is out of luck:
“First-quarter starts data presents further evidence of Dallas-Ft. 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.”
According to Shipp, housing starts to be priced between $300,000 and $349,999 jumped 81.2%, which is almost twice the increase in closings.
On the other hand, starts below $200,000 dropped 14.6% from last year and closings plummeted 31%, Shipp said.
And Shipp said that 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.”