With over half a million new residents coming to Texas each year, the area’s housing options are shrinking and forcing new development to keep up. In fact some of the top Texas metros and their surrounding areas including Dallas, Houston and Austin have held some of the largest increases in new residential and commercial construction growth across the nation in recent years.
A few of the state’s most notable recognitions in 2017:
- Leader in the US for fastest growing economy
- Dallas a leading metro with the highest job growth rate
- Largest year over year population growth nationwide
- Dallas a top places to live in 2018
With some of the best opportunities for employment, housing and investing it’s no wonder the state’s population is growing fast – that is growing faster than any other state in the nation as reported by the US Census Bureau.
However the growing popularity and populations of Texas have also created an influx in both rental costs and home market appreciation caused by the area’s depleting housing inventory.
With a demand for housing seemingly outweighing the available properties in the state’s most desired city and suburban locations, developers and property firms are focused on breaking new ground to make room for new and relocated renters and buyers.
Take Western Rim Properties for example, one of DFW’s leading property development firms; which has nine new rental construction projects ready to launch in 2018. These communities are located in some of the top surrounding city areas including Rowlett and Farmers Branch, and focus in on serving the growing need for affordable rental properties that provide some of the area’s highest quality accommodations.
So why are firms like WRP focusing their growth outside of the state’s major urban locations? They’re listening to the market and where it’s headed – just outside of Texas’ city centrals.
The cause for this shift in growth headed to the city outskirts is a direct reflection of the population boom and underdeveloped housing availability. Price spikes and limited inventories are pushing residents to explore new locations.
One market that underwent a large price increase was DFW which had the state’s highest jumps in rental prices growing 3.8% in 2017- double the national median increase that was reported at 1.9% by Zillow in their annual rental forecast report. And these increases aren’t limited to just city renters; Zillow goes on to report the median home value for the Dallas suburb Plano grew 6.4% last year – that’s 1.2% more than the national average – and is expected to continue this increase in 2018.
With a booming economy and job market that helped land Dallas as one of the top 10 home markets in the nation, It’s no surprise costs are increasing in the city and more people are looking for affordable alternatives.
Recent reports have even shown the majority market of new home buyers and renters – millennials, are headed for popular Texas suburbs over its city centrals. “The rental communities of today’s generations provide city-like amenities and top of the line accommodations. Along with close proximity to cities and thriving job markets; these suburban developments are giving renters what they’re after” shares Marcus Hiles, CEO and founder of Western Rim Properties.
The Texas community as a whole is starting to adapt this forward thinking approach as new businesses are relocating and expanding to areas outside of the city focused on growth. Among the leaders, McKinney, Plano, Allen and Round Rock.
It seems the state although one of the largest in the nation is bringing change that will soon be the standard in many major metro areas. Residents and businesses are investing where the opportunity is and its opening up a new market for all.
- Marcushiles.net – Texas as a Top Place to Invest
- Leapdfw.com – DFW Rental Market Report 2018
- Homeunion.com – Best Real Estate Investment Opportunities in 2017
- CNBC.com – Millennials are flocking to the suburbs—here are 20 of the most desirable ones in America
- Bizjournals.com – Texas added more people than any other state in past year