Total new-home closings: 19,719
The good: One of the hottest job markets in the nation outweighs the area’s lot constraints.
The bad: Inflated prices force buyers out of choice areas, with no added inventory in sight.
The bottom line: Lot shortages in key areas spur growth in outer submarkets, keeping these areas on top. While the Dallas-Fort Worth area has been plagued by new-home starts exceeding incoming lots since 2008, in mid-2014 the area posted a rebound—to the tune of a 63% increase in incoming lots over the same quarter in 2013. Unfortunately, the bulk of those newly available building sites aren’t within the most desirable areas, which account for 75% of demand. But that hasn’t stopped new-home buyers from pursuing homes in the area’s farther out submarkets.
Increased competition for lots has forced median prices for new homes up by as much as 24% recently. That’s beyond the reach of some buyers, steering them toward the resale market. However, one of the strongest job markets in the nation and unemployment levels that dropped by 1.2% year over year in March from 2014 to 2015 keeps buyers flowing into the region, making this a strong market for the foreseeable future.