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Right now, first-time buyers are the main drivers of this market — Dallas-Ft. Worth is probably the single most affordable major metropolitan area for housing, and that keeps them coming. But when job growth resumes — and the outlook for that is promising — we expect to see the upper sectors heating up as well.
By all accounts, Dallas is poised to be among the earliest metros to rebound with an economic recovery. So while home sales and production are already robust, there’s reason to believe we’ll be back to break-neck speed before long.
Biggest source of concern for builders:
In terms of external factors, job growth is the number one concern. But on the inside, builders are very concerned about the increasing levels of impact fees that cities are imposing. That’s an issue that translates directly to housing affordability.
Market trends:
Anything priced under a quarter-million is being absorbed right away — that’s the trend, and we should continue to see strong demand for entry-level homes. Our production (high-volume) builders have all notched their market focuses downward to affordable product, which is really moving. They’re all poised to move into higher markets as soon as the economic indicators support that.
On the flip side, much of the multifamily product that’s being built is on the upper end, aimed at lifestyle renters like empty nesters and young professionals who want a lot of amenities. Where mid-market vacancies have opened up, move-in incentives are big. Some will pay moving costs, provide a year of free dry cleaning or even send lease-signers on a one-week cruise.
Remodeling seems very healthy right now. Our remodeling members are doing well. Many are closing on big contracts that might have been on the backburner earlier due to war jitters. Those uncertainties seem to have been resolved, and there’s a great deal of activity in that market.
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