El Paso's strong employment growth, affordability, low vacancy rates and high population of young households were critical to the classification process. Home prices in Austin have risen in recent years, as in other housing markets, due to a combination of increased demand and limited inventory. Dallas, one of the largest metropolitan areas in the U. S., is currently the beating heart of the Texas real estate market.
Residential real estate experts believe that a six-month home offer indicates a healthy balance between buyers and sellers. As the housing market cools down, this should also provide some relief for tenants, according to Laila Assanie, senior business economist at the Federal Reserve Bank of Dallas. In addition, Texas homebuilders are not meeting the high demand for low-cost single-family homes. In a balanced housing market, it would take five to six months for the supply of housing to be depleted.
The cost of living in El Paso is lower than the national average, while the cost of housing is well below that of other major metropolitan areas, including Houston and Austin. In Dallas, demand for rental units increased 14 percent over the past year, making now an excellent time to make a financial investment in the city's housing market. After years of strong increases in home prices and fierce competition to buy a home in the midst of the COVID-19 pandemic, the Texas housing market is beginning to cool off. The population of Dallas has grown at double the national rate for years, driving up investment property prices in Dallas because builders can't keep up.
While the current competitiveness of the Dallas housing market is slowing down, it is far from normal or balanced. A strong economy has driven home prices in Dallas beyond their fundamental levels for a sustained period, according to a report by Ken Johnson, associate dean at Florida Atlantic University. In Dallas, large apartment buildings and single-family homes account for the vast majority of the city's housing stock, with small apartment buildings making up most of the remaining properties. Mike Dishberger, a townhome developer in Houston and incoming president of the Greater Houston Builders Association, said that's because there weren't as many buyers looking for homes.
As a result, while prices are higher than the national average, they are significantly more affordable, which will benefit both buyers and Corpus Christi real estate investors.