One key factor in the Dallas-Fort Worth area becoming an economic powerhouse was the low cost of housing.
But is the area losing that advantage? Sriram Villupuram, associate professor in the department of finance and real estate at the University of Texas at Arlington’s College of Business, asked his audience that question at a symposium the school hosted on March 20.
“The attractiveness of the metroplex includes affordable real estate and a well-educated workforce provided by several public and private universities,” Villupuram said during the “DFW Real Estate—The Next Decade” event.
Villupuram noted that home prices have more than doubled in 10 years from a median listing price of $170,000 in 2012 to about $425,000 in 2022.
With residential real estate no longer among the most affordable in the country, Villupuram asked how the area will attract companies and jobs over the next decade if Dallas-Fort Worth begins to lose that housing value proposition. Many believe Austin has already lost that edge, he said.
According to a report from real estate brokerage Redfin, more homebuyers looked to leave Austin than move in during the third quarter of 2023, the first time that has occurred since the firm began keeping track of that data.
“We’ve got to increase our supply of homes,” Villupuram said. “In the next 10 years (Dallas-Fort Worth) is going to be at nine million people. The question is where are they going to live?”
San Francisco was once in the position that the Dallas-Fort Worth area is in now, creating many jobs.
“But they did not create a proportional amount of housing,” he said. “The next thing you know, their prices were out of whack.”
The Dallas-Fort Worth market is ranked second with the most pent-up housing demand, according to the National Association of Realtors.
Inventory has been steadily climbing over the past several months – 2.5 months in Fort Worth and 2.4 in Tarrant County. At the same time, the Greater Fort Worth Association of Realtors has seen a decrease in the number of days a home stays on the market in Fort Worth, meaning demand remains high.
“As we head into the spring market and more options become available, home buyers are going to want to be prepared to make an offer if a home catches their eye,”said Blake Barry, 2024 president of the association.
It’s not just home prices that will have an impact on growth, said Mike Rosa, senior vice president of economic development, Dallas Regional Chamber.
“If you look at the edges of our region, think about Decatur and Bridgeport, we’re growing in all directions,” he said. “We may have the housing, but growing that far out, how do you provide the infrastructure, the roads, the hospitals. It puts a lot of stress on infrastructure.”
CosMc’s to land in Fort Worth
CosMc’s, a new concept from McDonald’s, is coming to Fort Worth. (Courtesy photo | McDonald’s)
CosMc’s, the small format beverage-led concept from fast-food giant McDonald’s officially landed in Texas March 19 when a Dallas location opened. CosMc’s is a beverage-focused store, aimed at competitors such as Starbucks, Dutch Bros and Fort Worth-based HTeaO.
Nine of the stores are slated for Texas, including one in Fort Worth that is under construction at 5341 McPherson Blvd., in the southwest part of the city. No opening date is set for that restaurant, according to a McDonald’s spokesperson.
The menu for the restaurant includes teas, lemonades, coffee, slushies, frappes and fruit drinks. There are also some food items such as a spicy queso sandwich, pretzel bites as well as a few items from McDonald’s breakfast menu.
Real estate deals
CIM Group announced that it has sold the recently completed 139,502-square-foot cold storage warehouse it recently completed at 6900 AWG Way in south Fort Worth. The warehouse sits on about 14.42 acres, which CIM purchased in 2020 as part of its acquisition of the adjacent 1.1 million-square-foot Junction 20/35 logistics center. CIM continues to own and operate the logistics center.
Rise48 Equity, a leading multifamily investment group, has acquired Copperfield Apartments at 6051 S. Hulen St. in Fort Worth. This 323-unit complex marks the company’s 49th acquisition since 2019 and its ninth in the Dallas-Fort Worth market.
Rise48 Equity has plans to invest over $9 million in revitalizing Copperfield Apartments, which will be rebranded as Rise Spring Pointe. Property renovations include interior and exterior upgrades.
JLL Capital Markets has closed the sale of Lake Worth Marketplace, a 197,553-square-foot, Kohl’s-anchored retail power center at 6034 Azle Ave., Lake Worth.
JLL represented the seller in the transaction. Vista Property Company, based in Dallas, acquired the asset.
Do you have something for the Bob on Business column? Email Bob Francis at bob.francis@fortworthreport.org. Bob Francis is business editor for the Fort Worth Report. Contact him at bob.francis@fortworthreport.org. At the Fort Worth Report, news decisions are made independently of our board members and financial supporters. Read more about our editorial independence policy here.
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