Even before the current crisis, Dallas-Fort Worth wasn’t building enough homes, Up for Growth study finds
Even before the current housing crisis hit, the Dallas-Fort Worth area was not producing enough housing, according to a new study of housing underproduction in major metropolitan areas across the country.
Conducted by the DC-based nonprofit Up for Growth research group, the study examines the housing shortage in some 309 “metropolitan statistical areas” and more than 500 non-metropolitan areas in the United States. In 2019, this study reveals that Dallas-Fort Worth already hasn’t built enough homes — up to 85,226 housing units.
Up for Growth ranked Dallas-Fort Worth 11th on the list of metro areas not producing enough housing. California’s Los Angeles-Long Beach-Anaheim area took first place for underproduction, falling short by more than 388,000 homes.
Dallas-Fort Worth ranked worst for underproduction in Texas, while Houston-The Woodlands-Sugarland clocked in at No. 15, and San Antonio-New Braunfels came next at No. 18.
“Forty-seven states and Washington, DC, saw the housing underproduction increasesand six states that had no underproduction in 2012 now have it,” the study notes.
“Homebuilders in high-growth places like Texas and Florida have seen spikes in underproduction well beyond California.” – Ready for growth
The report also notes that California, Texas and Florida have “the highest housing underproduction”, with a combined shortage of 1.6 million units. The report explains, “Homebuilders in high-growth places like Texas and Florida have experienced spikes in underproduction well beyond California.
In the past, Texas Governor Greg Abbott touted Texas as the most business-friendly state people could move to, taking a beating from California for its “high taxes, heavy regulations and socialist program” in a tweet in January 2020.
But the authors of the Up for Growth study say: “Texas presents itself as the place to live and do business for people who want to leave California, but despite its impressive economic growth, it has failed to build more than 320,000 homes”.
Meanwhile, the housing crisis in Texas, including Dallas-Fort Worth, is only getting worse. Since the pandemic hit in early 2020, Dallas rental prices have risen more than 22%, according to a recent analysis by Rent List. For those looking to buy a house in dallasprices also skyrocketed.
Buying a home has been further complicated by the influx of institutional buyers into the Dallas-Fort Worth area, a trend that some proponents say is already contributing to homelessness in the area.
Of all the homes sold in Dallas County last year, some 43% were purchased by institutional investors, such as private companies and hedge funds. In Tarrant County, that number was 54% in 2021.