Dallas housing prices have been on the rise in recent years, partly due to significant migration from other parts of the country between 2021 and 2023, from which Texas gained 1.6 million residents.
Due to the high cost of living, many Californians took part in the great relocation. Roughly 407,000 California residents left the state between July 2021 and July 2022. Between 2020 and 2022, California experienced the highest exodus of any state in the country.
Incoming Californians naturally brought their money with them, resulting in a highly competitive real estate market. California has one of the highest average salaries in the United States, with a median income of $73,220. Texas has an average median income of $57,300.
The Lone Star State was once perceived as a state with a low cost of living and housing prices, but the price of housing increased as the demand from new residents outweighed the market supply, which still has not been able to keep up.
According to data from May 2019, Dallas homes had a median sale price of $327,500, per Redfin.
Dallas home prices reached a historic high in May 2022, with a median sale price of $485,000 — a 48% increase from May 2019. Since then, prices have only increased.
The median home price in Dallas today is about $500,000, up 20.7% from last year and a whopping 52.7% from 2019.
Other issues factoring into the equation include some of the onerous building regulations in the City and the uncounted illegal alien population that has likely grown amid record-high crossings at the southern border.
High interest rates are expected to keep buyers at bay, but demand will remain strong and supply tight for the foreseeable future, according to a report from Ramsey. While the housing market is not expected to crash, prices may cool off in the next few months.
More Americans are renting than ever before as housing prices are unattainable for many working Americans. Younger generations are fighting various financial obstacles, and owning a home is not in the cards as it was for previous generations.