Home prices in certain Dallas ZIP codes have seen record increases over the past seven years, but the area near Fair Park in South Dallas takes the top spot.
The City of Dallas claimed three of the top five Texas ZIP codes with the greatest multi-year increase in price, according to an analysis by Texas Real Estate Source using data from Zillow and reported by D Magazine.
Between 2016 and 2023, Dallas saw homes in some ZIP codes jump more than 200% in price. The three ZIP codes where these sharp price increases were seen were 75215, 75216, and 75212.
The average home price in the 75215 area of Dallas rose from $51,256 in 2016 to just under $170,000 by 2023, a more than 230% increase, according to the analysis. This ZIP includes some of the Cedars and South Dallas.
The second local ZIP code with the largest multi-year increase can be found at 75216 in the Joppa and Cedar Crest neighborhoods of Dallas. The average price of a home in this part of Dallas rose from $57,034 in 2016 to $182,338 in 2023, a 220% increase in less than a decade, according to the analysis.
The last Dallas ZIP code with record price increases is 75212, which includes the neighborhoods of Trinity Groves, Westmoreland Heights, and West Dallas. The average home price in these neighborhoods has risen from $75,325 in 2016 to $239,722 in 2023, a 218% jump over the past seven years, according to the analysis.
While this rise in home prices is nothing to scoff at, the robust increase also comes with the drawback of higher property taxes.
Rising property taxes are one of the biggest issues among property owners in this part of Dallas, according to Ken Smith, president of Revitalize South Dallas Coalition, a nonprofit that champions job creation and economic development in South Dallas.
“When you have these types of increases in your values and your corresponding taxes, it serves as an eminent domain with gloves,” said Smith, D Magazine reported. “It pushes people out of their houses in a way that you don’t see like a bulldozer.”
While rising property taxes may dissuade some homebuyers from choosing these areas, it doesn’t seem to have had the same effect on developers. Texas Real Estate Source determined that each of the top-performing ZIP codes had seen rapid growth and development.
However, one factor that does inhibit development citywide is Dallas’ slow permitting process. Dallas’ permit approval process for single-family homes regularly exceeds the permit office’s recommended issuance time, as seen by the Department’s permit activity dashboard. Further, these delays also ratchet up home prices by prolonging construction, the cost of which must then be offset by a house’s final price tag.
