Dallas is one of the hottest destinations in the United States. People from all over the United States are flocking to Texas for its low cost of living and employment opportunities.

In fact, the Dallas-Fort Worth area was number one in the nation for population growth according to the U.S. Census. Over the past five years, the Dallas-Fort Worth area added more than 650,000 residents.

Read on for a deep dive into the Dallas housing market. Explore the city and surrounding area’s real estate forecast for 2022 and beyond.

Home Prices

Home prices are skyrocketing in north Texas. Since October 2020, the median home price in Dallas is up more than 19 percent. This is faster than the national average and there are few signs that the pricing surge is slowing down.

The increase in price is driven by inflation and demand. Building materials and labor both cost more, which is driving up the price of new construction.

There is also significant demand from population growth. At the same time, limited housing supply is putting upward pressure on housing prices.

Population Growth

Before investors start shopping for waterfront homes for sale, they want to know if the area’s population growth is sustainable. If demand for housing continues to outpace supply, investors can bet on home prices rising for the foreseeable future.

Last year, Dallas-Fort Worth added 120,000 new residents. While this is slightly below the average pace over the past five years, it is still a significant growth rate.

Also, the lower figure reflects the realities of the Covid-19 pandemic in which many people stayed put. As conditions improve across the country, the pent-up demand to relocate to Dallas-Fort Worth will be realized.

In general, Texas is appealing to people across the nation. Politics is one reason for the mass relocation to Texas.

Elon Musk, the CEO of Tesla, is one high-profile example. Musk left California for Texas to reduce his company’s operating expenses.

People are fleeing coastal states with high income and property taxes. They are also seeking more a more sensible government reaction to the Covid-19 pandemic. States that are implementing vaccine and mask mandates are seeing their residents move to Texas.

Inventory

There is limited housing inventory across North Texas. Supply is so low that it cannot keep up with demand. This results in multiple prospective buyers, bidding wars, and houses selling extraordinarily fast.

In Irving, Texas there were 465 homes for sale in 2019. This year, the number of available homes is just 162. The same trend is present in Dallas and other North Texas towns like Frisco, Denton, and Plano.

2022 Dallas Housing Market Forecast

There are no signs that the established trends in the Dallas real estate market are going to change. Supply is low and the Dallas-Fort Worth area is in demand. This is going to keep upward pressure on home prices.

There is no question that this area is ripe for investment. If you enjoyed this article about the 2022 Dallas housing market forecast, check out our blog for more great content.