Home builders across Dallas-Fort Worth are turning their attention to so-called starter homes with a renewed focus on adding homes under $300,000 back into the market.
While the DFW housing market has cooled slightly, real estate experts still point to a seller’s market where inventory’s lower than demand. It’s a trend that’s made it especially tough for first time buyers to break into the market.
According to Metrostudy, the median new home price in DFW is down 2.4 percent from last year. It’s expected to continue to drop or at least remain flat, which experts said will help extend this current real estate cycle DFW is in.
To do so, builders like Altura homes are spreading into communities to the far south, north and east of DFW.
“Really, affordability is finding land that’s affordable. It’s finding locations that allow us to get a land price that’s cheaper that we can pass on that cost,” said Vice President of Construction Greg McGriff.
While McGriff said they build anywhere from $200,000 to $500,000 homes, the community currently under construction in Red Oak will focus on those below $300,000.
He said it comes with challenges. In addition to increased permit and construction costs, builders have had to deal with labor shortages.
But when they start with land at a lower price point, they can build small, minimize amenities and source materials locally to create homes that appeal to the majority of current buyers who don’t want to exceed $400,000.
They’re homes that appeal to buyers like David Taylor who’s looking to relocate from Colorado for retirement. Taylor’s narrowed his search to focus on communities where construction is happening like Melissa, Princeton, Anna and now Red Oak.
Though he looked at resales, he’s found himself leaning toward construction.
"Most definitely the pricing on a new build is a better value to me," said Taylor.
It’s also an option he feels gives him plenty of options in a red-hot real estate market.