Dallas Home Prices Skyrocketed 142% in 10 Years
A new real estate report confirms something that Dallasites pretty much suspected: The city of Dallas saw the biggest increase in housing prices among U.S. cities within the last decade, with median home prices skyrocketing up to 142 percent.
The report by online real estate database PropertyShark analyzed median home sale prices in 41 of the most populous U.S. cities and locales in 2014 and 2023. According to the study, the median sale price of a home in Dallas in 2014 was $127,000. A decade later, median housing prices in the city more than doubled, landing at $307,000 in 2023.
Demand for housing increased dramatically due to the COVID-19 pandemic, when “millions of office employees suddenly shifted to working from home across the country” and many of the city’s attractions, restaurants, and events were suddenly gone, according to the report.
Dallas’ price growth was fueled by an increase in population, a robust economy (bolstered by an increase in corporate headquarter relocations), and a low unemployment rate.
The other big trend gleaned by the study saw a major slowdown in prices of downtown residential properties, one that started during the pandemic in 2020 and has widened ever since. In 31 downtowns of the 41 locations analyzed, prices grew at a slower rate than they did in the entire city.
“As the pandemic persisted — along with remote work models, which later morphed into hybrid setups — buying preferences shifted from downtowns to more suburban areas and smaller towns,” the report said.
According to the study’s analysis of downtown-only residential transactions, it’s now four percent cheaper to buy a home in downtown Dallas than anywhere else in the city. This decline offsets what had been a decade-long climb: Median sale prices of a home in downtown Dallas ballooned 64 percent, jumping from $180,000 in 2014 to $295,000 in 2023.
Dallas was one of nine locations in the U.S. where city-level housing prices rose than higher downtown prices, along with cities such as Los Angeles, California, Seattle, Washington, and Kansas City, Missouri.
One major factor leading to the price of Dallas housing is the fact that it’s struggling with a significant housing shortage.
“Non-profit buildingcommunityWORKSHOP estimated a 60,000-home deficit for low- and moderate-income buyers [in Dallas] in 2023 with projections seeing those figures rise even further,” the report said. “On top of that, low- and moderate-income neighborhoods — neighborhoods that are not in the city’s urban core — experienced much sharper price increases than high-end areas.”
The full report can be found on propertyshark.com.
Source: Dallas CultureMap