July 7, 2017
One of the reasons why people are flocking to North Texas is because of reasonable housing costs. However, the recent Dallas Builders Association/Meyers Research Housing Report noted that Dallas-Fort Worth could be losing its affordability edge.
The median home price in the area jumped from $149,900 in 2011 to $232,000 in 2016. In March 2017, the new home affordability ratio stood at 46.7%. This means that less than half of those living in the region can afford a new home.
Land and labor are two factors. Also contributing are lumber costs, which will be exacerbated if the Trump administration imposes duties of up to 24% on Canadian lumber.
Meanwhile, regulations, on average, account for more than $84,000 per home. More than one-third of Dallas Builders Association members cited code changes and increased fees and dedication requirements as a substantial reason for added delays and increased costs.
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