North Texas was among the top metro areas in the country to record double-digit single-family home price increases at the end of the year. The National Association of Realtors says that home sales prices in DFW rose nearly 18% in the final quarter of 2021, compared to 14.6% across the country in the fourth quarter of 2020. The NAR said DFW home sales averaged $350,000 at the end of the year, just under the $361,700 U.S. median. The increasing sale prices continue a trend due to low inventory and high buyer demand. The biggest annual home price increase was in Punta Gorda, Florida, at 28.7%. Austin continued to lead Texas in home price gains at 25.8% and a median home sales price of $485,400.
Watch out Gotham! DFW trailed only the Big Apple for new commercial building and apartment starts in 2021 with $10.7 billion in projects. That was up 45% from 2020 and a new record. Across the country, commercial and apartment construction starts were up 16%. The North Texas surge was led by industrial and apartment starts. DFW was the country’s top industrial market at the end of the year with more than 50 million square feet under construction. More than 40,000 apartments also were being built in the last months of the year, topping other metro areas. Among the largest projects in the area last year were the Loews Hotel and Convention Center in Arlington ($550 million) and the Harwood No. 14 tower north of downtown Dallas ($150 million).
Single-family construction is booming across DFW, but builders still are unable to keep up with the demand. North Texas led the country in single-family home starts last year. Even though building starts climbed 20% to a record 58,000 units in 2021, it has not been enough to increase the inventory or curtail buyer demand. Since 2020, base pricing for homes has increased exponentially and has been much higher for homes priced over $500,000. Increased costs and shortages for land, labor, lumber and other materials have fueled those price increases. Housing starts are predicted to fall in 2022 and next year, challenged by increased mortgage rates and affordability issues.