Despite being one of the country’s fastest-growing metropolitan areas, Dallas-Fort Worth must provide more affordable housing for people of all income levels. Rents have risen by about 30% in just two years. So, what’s causing Dallas-Fort Worth’s high cost of homeownership, and is there anything that can be done about it?

Factors Contributing to Dallas-Fort Worth’s High Housing Costs

Several economic factors are influencing the decreasing affordability of homes in North Texas. These are just a few examples of inventory scarcity, rapid population growth, and wages that have yet to keep up with historically high inflation. As a result, potential homebuyers are delaying their purchases longer, significantly decreasing the number of homes sold.

Another factor is the increase in interest rates, which was implemented to combat inflation and rising prices. In January 2023, the average 30-year fixed-rate mortgage was 6.3%, nearly double the rate of 3.5% a year earlier. The need to save for a larger down payment has caused many would-be homeowners to postpone their purchases.

Dallas-Fort Worth’s Affordability in Relation to Other Metropolitan Areas

Despite rising living costs, Dallas-Fort Worth remains relatively inexpensive compared to other major metropolitan areas. Dallas-Fort Worth has yet to reach the levels of large metro areas such as Austin, Seattle, and Phoenix. But Cullum Clark, who runs the Bush Institute-SMU Economic Growth Initiative, says that the Dallas-Fort Worth area has become less affordable over the past ten years. PolicyLink and the University of Southern California created the National Equity Atlas, a racial and economic equity report card. It ranks Dallas-Fort Worth as the 20th most unaffordable city out of 100 in the U.S.

Eligibility and Affordability for Federal Housing Assistance Programs

People who didn’t qualify for federal housing assistance programs in the past because they made too much money are becoming more eligible as costs rise, but incomes don’t. As a result, the number of applicants for federal housing assistance programs in Dallas-Fort Worth has increased significantly.

Dallas-Fort Worth’s Affordable Housing Supply is Shrinking

Many people in North Texas who can’t afford to buy a home are fighting for the few affordable and available units. Carolyn Rosson, a real estate executive, says that when people look for a home, they are willing to compromise to be in the location they want, such as near their job or a certain school district. This could imply purchasing a home in less-than-perfect condition. Still, it is more important for them to enter the housing market than to continue renting.

Despite these obstacles, there are still opportunities for prospective homeowners in the area. For example, Dallas Area Habitat for Humanity helps families and individuals with low to moderate incomes become homeowners by giving them low-interest loans, help with down payments, financial education, and advocacy. Many other organizations are also working to provide more affordable housing in the region, and residents should keep current on the available resources.

Finally, the rising cost of housing in Dallas-Fort Worth is a complex issue that will take time to resolve. On the other hand, people can make well-informed decisions about their housing needs and work toward becoming homeowners if they stay informed and look into their options. It’s important to remember that opportunities exist for those willing to try to find them.