Dallas’ Booming Real Estate Has Put Homes Out of Reach for Many and Eroded Our Competitive Edge

Too much of a good thing can become a problem.Soaring home values in the Dallas area have lifted the net worth of thousands of families. But for many renters and others on the outside, a new home in Dallas is now beyond their financial reach. That’s discouraging for entry-level buyers, and it could create headwinds for an economy whose low cost of living has attracted newcomers for decades.In a measure of affordability, the Dallas-Plano-Irving area has lost major ground. In 2010, nearly 80 percent of new and existing homes sold in the area were affordable to families earning the median income. By late 2016, just 50 percent of the homes were considered affordable.That’s the lowest score for Dallas since at least 1991, when the National Association of Home Builders/Wells Fargo Housing Opportunity Index was launched.The explanation? Since 2010, the median price of homes sold here increased 77 percent while median income rose about 4 percent. Many factors contributed, including higher land costs, more home upgrades, and community restrictions on density and square footage.  Continue reading...