Labor, land, and material costs may make it difficult for Dallas builder to build a home for under $400,000, but the market is slowing for those homes, reports Candace Carlisle of the Dallas Business Journal.
"Area builders share with us that they are seeing 'pushback' from prospective home buyers, especially for houses at the upper price points," said Ted Wilson, principal at Dallas-based Residential Strategies Inc.
With the rise of demand at lower levels, builders are focusing on more affordable locations.
With robust sales activity for first-time and first-move up buyers, Wilson said North Texas builders are focusing their efforts on building homes in new, more affordable communities in the Metroplex. They are also building less expensive homes, such as townhomes.