Is DFW becoming less affordable? (Dallas, Austin: condos, affordable house, landscaping)

[Downtown Dave]

Originally Posted by lepoisson

My original statement in 2016 said: My apartment rent has gone from $750 to $900 in just a few years. Next year I'd imagine I'll be paying around $1000 for a 1br.

I just checked their website and that $900 1br apartment in 2016 is now renting for $1464. This is in Arlington which is less desirable than other parts of the metroplex, so I can only imagine how much rent prices in other parts have increased.

I am paying more for rent in a Tarrant county suburb than I paid in Chicago (in the city, not suburbs), just two train stops (about 3mi) from downtown. My apartment here is bigger and is newer but the number of bedrooms is the same. Is Chicago really undervalued or is DFW really overpriced? Maybe both?

Surely these price increases will end eventually. Will people really be paying $2000/mo for a 40yr old apartment in Arlington in 2025? I guess at some point the increases will end. The shocking thing is that it hasn't gotten better since 2016, but far worse. Rent prices are higher than ever and people are paying more than asking prices for homes.

I rolled into Dallas for the first time in my Acura Integra hatchback back in July of 1996. My first apartment was in the The Village - The Green to be precise [I later moved to The Chase].

I remember my rent back then because it was noteworthy - $444 a month for a 1-bedroom.

If I go to the Bureau of Labor statistics website CPI Inflation Calculator I get this:

CPI Inflation Calculator
$ 444.00
in July 1996

has the same buying power as
$ 788.46
in December 2021

I know that other areas in The Village have been updated, but I believe The Green looks the same as it did back when I lived there. If I go to the The Village website I see these apartments available for The Green:

THE VILLAGE GREEN I

1 bedroom, 1 bathroom
624 sq. ft. • $1,525 / month

THE VILLAGE GREEN I

1 bedroom, 1 bathroom
525 sq. ft. • $1,395 / month

THE VILLAGE GREEN I

1 bedroom, 1 bathroom
525 sq. ft. • $1,450 / month

An apartment that once cost 788.46 in inflation-adjusted dollars now goes for $1,395 to $1,525.

I left Dallas in 2015. This housing crisis is so depressing and mind-boggling at the same time.

[DFW_FTW]

Originally Posted by Downtown Dave

I rolled into Dallas for the first time in my Acura Integra hatchback back in July of 1996. My first apartment was in the The Village - The Green to be precise [I later moved to The Chase].

I remember my rent back then because it was noteworthy - $444 a month for a 1-bedroom.

If I go to the Bureau of Labor statistics website CPI Inflation Calculator I get this:

CPI Inflation Calculator
$ 444.00
in July 1996

has the same buying power as
$ 788.46
in December 2021

I know that other areas in The Village have been updated, but I believe The Green looks the same as it did back when I lived there. If I go to the The Village website I see these apartments available for The Green:

THE VILLAGE GREEN I

1 bedroom, 1 bathroom
624 sq. ft. • $1,525 / month

THE VILLAGE GREEN I

1 bedroom, 1 bathroom
525 sq. ft. • $1,395 / month

THE VILLAGE GREEN I

1 bedroom, 1 bathroom
525 sq. ft. • $1,450 / month

An apartment that once cost 788.46 in inflation-adjusted dollars now goes for $1,395 to $1,525.

I left Dallas in 2015. This housing crisis is so depressing and mind-boggling at the same time.

Stop using a cooked up half baked CPI the government shoves down your throat so when you get a 3% raise it doesn't look so bad.

Real inflation is between is 12% - 15%. In 2019 that figure was 9.6%.

Just look at what S&P has done the last 5 or 10 years.

You need to make between 15% and 17% to not lose any purchasing power against folks who are invested and hedged against inflation.


https://finance.yahoo.com/quote/SPY/performance/


https://www.prnewswire.com/news-rele...300936291.html

Trailing Returns (%)

Monthly Total Returns SPY


1-Month 2.25%-0.25%

3-Month: 8.36%

1-Year: 40.90%

3-Year:18.51%

5-Year: 17.51%

10-Year: 14.71%

[Leonard123]

Originally Posted by DFW_FTW

Stop using a cooked up half baked CPI the government shoves down your throat so when you get a 3% raise it doesn't look so bad.

Real inflation is between is 12% - 15%. In 2019 that figure was 9.6%.

Just look at what S&P has done the last 5 or 10 years.

You need to make between 15% and 17% to not lose any purchasing power against folks who are invested and hedged against inflation.


https://finance.yahoo.com/quote/SPY/performance/


https://www.prnewswire.com/news-rele...300936291.html

Trailing Returns (%)

Monthly Total Returns SPY


1-Month 2.25%-0.25%

3-Month: 8.36%

1-Year: 40.90%

3-Year:18.51%

5-Year: 17.51%

10-Year: 14.71%

Inflation is best measured by one's own recurring expenses over the course of the year. Different items have gone up different amounts. It's going to vary for each individual. I never knew what people were talking about before October, and just this month has become the worst ever. Maybe it just lags here. I fear the worst is yet to come.

[Rollingon]

The rate at which rates increased in the Covid induced scenario will slow down. But the prices will be forever increasing. I have been planning to move to Dallas since 2006 and every alternate year thereafter have followed the market to notice both rents and prices have been ticking upwards.
Growth of Dallas is fuelled by companies relocating to Dallas. Such growth is rooted in sound economic policies. The business environment is maintained very competitive to attract companies with long term plan. Secondly those who own huge land parcels have avoided the temptation of killing the one that lays a Golden egg. They denied selling investors new builds. They avoided over building and thus continued to harness the demand by regulating supply. That is both smart where they avoid foreclosure fiasco and assure consistent appreciation which attracts home ownership as well as investment.
Moving to the sun cities is an irreversible process. There are some ethnicities working in the service sector that don't like cold weather. Then there are many who are priced out of expensive but colder mega cities up north. They are the key drivers of relocation and thus price. Company relocation and construction boom means new communities and more jobs which then drives more job seekers from rest of the country.
Take the example of NJ where I live. Due to Covid home prices have increased on average by $200,000 over 2019 prices and that increase is across the price spectrum. So a house that sold for 450,000 in '19 is listed at nearly 650,000 and those that sold for 1$M are listed at 1.35M. Thus places like Dallas, North Carolina, Florida continue to "seem" affordable. All other price increases across grocery, supplies, insurance and taxes continue to affect people in the north and west coast as much as rest of the country. Except that real estate prices and job cuts hurts more in these high cost cities which leaves one withno choice but to follow the jobs.
Prices will only fall if there is an extended natural catastrophe. Let's hope that never happens and Dallas along with rest of Texas continues to grow till it rivals New York and San Francisco as a mega city but for all the right reasons.

[DFW_FTW]

https://dfw.cbslocal.com/2022/02/17/rent-rise-dfw-2022/

Researchers with rent.com have recently published new data showing the trend of high apartment rental rates will continue throughout 2022.

DFW apartment rates for 1-bedroom apartments are at about $1,700 a month on average, he said.

The real drastic increase is seen in 2-bedroom rentals which are averaging $2,400 a month which he explained is 31% higher year over year, Carberry said.

“I think a lot of people are renting right now because they have been either priced out of the housing market or there just isn’t enough inventory where they want to buy,” he said.

[Leonard123]

Originally Posted by DFW_FTW

https://dfw.cbslocal.com/2022/02/17/rent-rise-dfw-2022/

Researchers with rent.com have recently published new data showing the trend of high apartment rental rates will continue throughout 2022.

DFW apartment rates for 1-bedroom apartments are at about $1,700 a month on average, he said.

The real drastic increase is seen in 2-bedroom rentals which are averaging $2,400 a month which he explained is 31% higher year over year, Carberry said.

“I think a lot of people are renting right now because they have been either priced out of the housing market or there just isn’t enough inventory where they want to buy,” he said.

That's interesting considering I see 3-bedroom houses listed around $2000 in some pricey suburbs. I've seen apartment rents less than that though.

One wonders if people will eventually give up and move to a location with a lower cost of living or return to their pre-pandemic living arrangements. It would seem to make more sense than staying, but the one thing we have no shortage of is people lacking common sense.

[RJ312]

Yes, it is turning into San Francisco on the prairie in terms of affordability.

[albert648]

Originally Posted by RJ312

Yes, it is turning into San Francisco on the prairie in terms of affordability.

DFW has a LONG way to go before it becomes another San Francisco. Unlike San Francisco, we're actually building housing.

Austin will get there before us.

[fuhongl]

DFW can build more new construction homes all the way to OK border/red river.
There are still several towns on that route.

[Tyryztoll]

Originally Posted by RJ312

Yes, it is turning into San Francisco on the prairie in terms of affordability.

This may come off as a gross exaggeration initially, but even in comparison to when we lived there (2015-16) it’s a lot closer to truth that one might believe. Home prices and associated property taxes alone are so high now that it lends at least a bit of credibility to the original assertion.