Dallas, Texas is Changing! What Does it Mean for You?
Dallas is changing, and this is what it could mean for you. Seeing so much relocation happening here in the Dallas area, if that's going to be you as well, there's some things that we want to talk about with you today.
Considerations for Relocation
With more change happening year over year, there's some things that you may want to consider if you're looking to make that move here to the Dallas Texas area. So if you do have any other questions about where to move what it's like living here, and more importantly how we can help you make that move a lot easier, reach out and let us know. My number is down below so call me, text me, whatever you need to do, send me an email, and let's get into the nitty-gritty about how we can answer those questions that you may want to be considering before making that move here to the Dallas Texas area.
Population Growth in Dallas
Alright, but first thing I want to talk about today is going to be the population growth that is happening here in the Dallas area from all across the country. Statistics show that two percent of home buyers are actually looking to move to the Dallas-Fort Worth metroplex. That is two percent of the world, not just the ones from California and New York, which is where we're getting tons of calls and tons of relocation happening from, because we are seeing more and more people also relocating here from various other countries as well.
Detailed Population Statistics
Our metroplex, as we call it, is growing faster than any other metropolitan area in the country. A census bureau report released last May found that the entire Dallas metro region added over one hundred and seventy thousand people from July of 2021 to July of 2022. That was followed by Houston and Atlanta. And in the previous report put out for 2020 to 2021, DFW also came in at number one with a gain of over ninety-seven thousand people.
Migration Trends
Now when we're talking about net migration numbers though, since obviously some people don't end up do end up actually leaving our great metro here, Dallas has a net migration gain of almost sixty-four thousand people in 2021. But these newcomers didn't spread evenly all around the DFW area, and we wouldn't exactly expect them to. The standout destinations for relocation, which really is no surprise if you've done any research about Dallas or Collin County, with a net gain of over twenty-eight thousand transplants in 2021, and Denton County which added over twenty thousand. So when you add those together they account for three fourths of DFW's net gain in 2021.
Discussion on Housing Demand
So if you do have any more questions or thoughts on this particular topic about where you currently live and what it is that you're seeing in your area, leave your comments down below because our market is already getting back to crazy town these days. I mean spring hunting season is in full swing after all. So let's also get into what's happening with our housing demand because obviously we all know we're still struggling with a housing shortage.
Insight into Housing Market
Some see there being plenty of homes on the market but we're still lower than what is considered normal or balanced, and that's not just here in the Dallas area but also throughout the majority of the country. Here in Dallas, sales volume has increased thirteen point sixty-two percent year over year from four thousand three hundred and ninety-two to four thousand nine hundred and ninety transactions in 2023. But as we just talked about our population is still on the rise. The median price of a single-family home rose one point five eight percent from three hundred and seventy-nine thousand to three hundred and eighty-five thousand in the Dallas metro.
Construction Permits and Market Rates
Over twenty thousand new home construction permits have been issued for the metro so far this year alone, consisting of both single and multi-family residential homes. Dallas-Fort Worth also ranks number two with more than twelve thousand seven hundred single-family home permits issued this year and seven thousand eight hundred and eighty-one for multi-unit residential homes. For a little bit of a reference, Houston did land in the top spot for the most single-family home permits at fifteen thousand three hundred and ninety-one. New York City though did rank number one with the highest multi-family home construction permits totaling ten thousand one hundred and fifty-five.
Interest Rates and Affordability
Now on average five thousand one hundred and fifty-six Dallas-Fort Worth home permits were issued every month in 2023 which is also the second highest rate in the nation. So in basic terms our real estate market is still pretty hot. Now when we're talking about interest rates, gone are the days of the three percent interest rate at least for quite a while, and who knows if we'll ever get those back.
Impact of Interest Rates on Homebuyers
So over the last couple years more people have been struggling to be able to afford a home or at least afford the home that they once thought that they could. But as you can see from this graphic the difference of half percent to even one percent of an interest rate can significantly impact what someone can afford their monthly payment to be especially if you're getting up into a higher priced home. For a lot of first-time home buyers though they scrape the budget for their monthly mortgage payment to be able to get into their first home and being able to buy their next upgraded home could take a lot longer than it once would have.
Job Opportunities in Dallas
Now as we move on to job opportunities here in the Dallas area, 2022 brought in over four million jobs and in 2023 over 4.2 million jobs with a 4.35 percent year over year increase in the job growth and almost one hundred and seventy-eight thousand new jobs brought into the Dallas metro area. This city has a very diverse range of employment industries including finance, technology, healthcare, and energy all of which have contributed to the economic growth that we're seeing here in the Dallas metroplex.
Discussion on Dallas's Economic Drivers
Now one of the most significant drivers of the Dallas economy is its location. Dallas is situated right in the heart of the United States making it an ideal location for businesses to operate nationally. The city has a well-developed transportation network with two major airports, extensive highway systems, and a busy port not too far south in the Houston area which has made it a transportation hub for goods and for people. I guess I do have a little bit more of an insight on that since that's actually what my husband does and the whole reason that we relocated here years ago.
Overview of Dallas's Diverse Economy
Also many of the people moving here comment on how they need to make sure that they are within a decent proximity to one of the airports because of having to be able to travel for work. And the city's diverse economy has also been pretty instrumental in driving the growth here as well. The finance and insurance industries for example employ a pretty significant portion of the city's population.
Tech Sector and Healthcare Industry
Dallas is also home to several Fortune 500 companies including AT&T, Exxon Mobil, and American Airlines which do provide a large source of employment and do help to contribute to the city's economic growth. Another factor contributing to Dallas's economic growth is its thriving technology sector. The city has become a hub for a lot of tech startups thanks to its favorable business environment which of course includes having no state income tax with lots of options for affordable real estate and a business-friendly regulatory environment.
Healthcare Industry Impact
Companies like Texas Instruments which has its headquarters in Dallas have also helped to stimulate a lot of the technological innovation in the city. Also, the healthcare industry is another big part of the Dallas economy. The city is home to several world-renowned medical centers including the University of Texas Southwestern Medical Center and the Baylor University Medical Center which have both attracted medical professionals and patients to our area.
Energy Sector's Role in Dallas Economy
Now the healthcare industry has contributed significantly to the city's economic growth providing thousands of jobs and driving up the demand for real estate. A couple of years ago I actually helped a nurse working for UT Southwestern buy a home and last year I helped a couple of different doctors purchase who are moving here for their jobs. Finally, the energy industry has been a significant contributor to Dallas's economic growth.
Dallas as a Real Estate Hotspot
The city has long been a center of oil and gas production and it does continue to be an important player in the energy sector with major energy companies such as Exxon Mobil and Chevron here in Dallas. It has created a pretty big source of employment and investment in our city. Now with Dallas being one of the fastest-growing cities in the United States and having such a strong economy, it's also become a hotspot for real estate investment.
Property Taxes and Homestead Exemption
Dallas's strong economy has made it a prime location for real estate investment not only for people living here but for people that live out of state. I have had family and friends reach out wanting to get into some investments here as well as clients calling and hoping to be able to purchase here because they're actually unable to buy a property wherever it is that they're living. So that eventually when they do make that move here to Dallas they already have a property that they have invested in.
Now a big one that always comes up is our high property taxes of course but good news for people relocating here and wanting to purchase their primary residents, the homestead exemption raised from forty thousand to one hundred thousand dollars last year in 2023 on your primary residence. So of course for the investor that lucky tax rate is not going to be applying for you. But if you do have any questions and you are considering making that move here to Dallas and it's on your radar within maybe the next few months or even a few years don't hesitate to reach out let me know how I can help.
