The Dallas-Fort Worth homebuilding industry has arguably had one of the best outcomes of the COVID-19 pandemic. Last year through February, before the pandemic began, the housing market was functioning steadily—partially due to a healthy job market in DFW. As 2020 progressed, historically low interest rates and high demand, particularly from millennials and first-time buyers, helped maintain momentum, especially in the new home housing market where Camden Homes operates.
For the sixth month in a row, new home sales in the Dallas-Fort Worth housing market rose, according to Dallas-based HomesUSA.com. November presented a total of 1,564 new home sales, an increase from October’s total of 1,551, and an increase in average new home prices, from $370,546 in October to $373,128 in November. Demand for new homes continues to grow, as their days on the market continue to fall. On the other hand, pending new home sales fell for the first time since the market picked back up after the COVID-19 effects seen earlier this year; the decline in pending new home sales indicates tightening inventory in the new home sector.
Another report found that the Dallas-Fort Worth metroplex is quickly becoming a renter’s hotspot, especially amid the flexibility that the COVID-19 pandemic has given many renters. According to a report released by Apartment List, 23.5 percent of people on the market for rental units are coming from outside of the metroplex, many coming from Houston. Additionally, there has been a 30 percent increase in the number of renters looking for 6-month leases or shorter; Apartment List notes that this spike is driven by renters “looking to leave expensive coastal metros, as well as those looking to move to mid-sized metros in scenic locales” (Dallas Business Journal).
Apartment List also reports that demand for rentals in big cities is falling, while demand for rentals in their surrounding suburbs is rising. In the Dallas-Fort Worth rental market, rent fell 2 percent from January to October in “Dallas’ urban core,” but rose 2 percent in the surrounding suburbs. With trends like these, in addition to a strong DFW economy and job market, Camden Homes is preparing for construction of rental lots in multiple subdivisions and hopes to begin leasing in 2021.