Residents of Dallas can now boast the second-highest share of luxury homes for sale in Texas.
Approximately 22% of the city’s home listings show a minimum price tag of $1 million, according to a new study by Point2, a division of Yardi Systems Inc.
“Higher than both the national and the state averages, the median home price in Dallas could be reason enough for the city to claim a higher share of high-end homes,” said Point2 industry writer Alexandra Ciuntu in an email to The Dallas Express.
According to Realtor.com, Dallas’ median listing price was $499,000 in June 2023, whereas its median selling price was $357,700.
However, Point2’s report shows Dallas’ median home price at $412,000. To calculate which real estate markets had the highest share of luxury real estate, analysts looked at listing data from Point2, Zillow, Redfin, and Realtor.com.
Other real estate markets in the Lone Star State with a large share of million-dollar homes for sale include Austin (24.7%) and Houston (11.4%). In contrast, the study shows that cities like Fort Worth, San Antonio, and El Paso showed a much lower share of luxury real estate, with fewer than 3.5% of homes selling for at least $1 million.
While Dallas and Fort Worth are both hot markets for real estate, Dallas sits on top of the market in terms of expensive real estate and ultra-wealthy homeowners, as previously reported by The Dallas Express.
“Corporate relocations and new business openings mean the city has been seeing increased popularity among professionals and investors, which only fueled the demand for housing and drove the prices up,” Ciuntu told The Dallas Express. “At this rate, listings selling for $1 million or more might become even more common.”
While demand may be pushing prices up, Dallas proper has been losing residents in recent years, which some have suggested is due to an underperforming public school system, high crime rates, and the prevalence of homeless people and vagrants in the city, as previously reported by The Dallas Express.
In terms of the mid-sized markets in North Texas, Grand Prairie reported only 1% of home listings above $1 million, while Amarillo had 3.5%, according to the study. Not all markets need to be mid-to-large sized to have a large share of luxury homes. In the smaller market of Grapevine, 13% of homes for sale come with a million-dollar price tag.
“Despite lingering uncertainty outside the luxury real estate market, the steadiness of prices, sales, and inventory levels have resulted in a consistent increase in the demand for luxury properties during the first five months of 2023,” according to the study.
The country’s most expensive state for luxury real estate was California, where million-dollar listings account for more than 60% of all inventory in Los Angeles, San Francisco, and San Jose.
The share of ultra-luxury homes in Dallas with listings above $5 million accounts for only 1.8% compared to Los Angeles, which had 11.6% of homes listed at or above $5 million.