Dallas made headline after headline in 2017 as one of the most growth oriented metropolitan areas in the nation. Although the city has always been known for its sprawling commercial landscape and diverse business community; the level of growth experienced by the state as a whole last year positioned it as a top place to live and invest in 2018.
As research recently published goes on to highlight; Texas rounded out last year leading growth in population, construction, business expansion and relocation across the US.
The reasons behind this upward trend focuses around the state’s overall appeal to residents and businesses looking for an affordable, accommodating, and quality area to set down roots and seek out opportunities. A main sticking point for both sides lies with the state having one of the highest average household incomes while also offering one of the most affordable housing and rental markets. Furthermore, state tax falls towards the low-end of the spectrum, making the overall barriers of entry for businesses and residents some of the lowest across the nation.
But how is the city of Dallas sustaining all this sudden growth? One thing is for certain, it has definitely not come without impact to the area.
Dallas is by no means an underdeveloped city, however it has shown the need to build upon its infrastructure to support the area’s growing business community. Specifically, data centers which help to support online networks and data usage for a surrounding area businesses. In 2017 Dallas had the second busiest data market in the globe and it hasn’t gone unnoticed.
Edgecore, who owns and operates cloud-connected, wholesale data centers has recently proposed Dallas to be a location in their $2 billion investment of data campuses. Seeing an opportunity to fill the market need, the company plans to build a 900,000 square foot campus that will provide scalable service to businesses in the DFW area with the ability to grow with the market demand. As this project is just in its developmental stages, the need for more support and better infrastructure is a current issue businesses face that will need vast improvement to aide their commercial success.
Increase Traffic & Roadway Construction
Dallas was recently ranked as having the 10th most congested roadway system in the US. The issue isn’t lack of space or routes as many other metros suffer from, but the capacity to handle its rapidly growing population. Specific construction has begun to the main road systems in the area including the Dallas North Tollway which will undergo updates to widen the route stretching from SH 121 to the President George Bush Turnpike. When complete the highway will have four tolled lanes in each direction but it won’t come without causing a stir. During construction motorists have encountered increased traffic through various lane closures and a reduced speed limits from 75mph to 60 mph. This translate into short-term headache for the population and is a direct results of a growing population outpacing the city’s ability to keep up.
Heightened Demand in the Housing and Rental Markets
The housing and rental market as a whole had an amazing year for appreciation and demand in 2017 and continues to. However with nearly a half-million people moving to the state each year, Texas sits at the top of the list for states with the greatest number of new residents, landing in the no. 2 position. Driving people to the area is the flourishing job markets, affordable housing options and diverse cultures of the state’s top metros. And the leading place residents are moving to – Dallas.
This high demand for both residential and rental properties has put developers on the run to break ground on new construction and supplement the need for increased inventory. With home sales expected to grow 6% in 2018 and apartment construction reaching a 30-year high in 2017, with much of the growth concentrated in major cities such as Dallas; the city is left with more residents than living options. This is creating increase in home prices and rental fees, and is putting emphasis on housing developments to catch up to speed before residents and renters become deterred.
Business Relocation Driving Job Opportunities
One of the primary stimulants for the rapid growth in relocation came from the overwhelming increase in quality jobs presented in the Dallas metroplex across widespread industries. With many top companies coming to the Texas area, the nation’s top talent is following suite. As reported by the Bureau of Labor Statistics, “among the dozen largest metropolitan areas in the United States, Dallas had both the highest job growth rate and the most jobs added from November 2016 to November 2017”. This translates into 100,000 new jobs added in the region since 2013 – and the increases are predicted to continue.
Since Amazon released its short list of the top 20 places it would be considering for its new headquarters, the possibility of 50,000 more jobs added in the next few years is in the cards. But even if Amazon doesn’t select Dallas in the end it says something about the area as a place for businesses to find talent, and professionals to find the jobs they are after.
Additional areas of the Dallas community are experiencing change from the impacts of this heightened growth and will need to take a proactive approach to best position for what is expected to be a leading location in the US – at least in the short term.