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Residential
Texas

DFW, San Antonio have tightest housing supply

Prices appreciated in DFW by a staggering 49 percent from June 2019 to June 2023

DFW, San Antonio Have Tightest Housing Supply in U.S.
(Getty)

Builders in some Texas cities are struggling to keep up with booming population growth.

Among 27 U.S. metros, Dallas-Fort Worth and San Antonio had the tightest housing supply through the second quarter, and Houston isn’t too far behind, according to the Bank of America Institute.  

San Antonio’s population grew 1 percent year-over-year in the second quarter. DFW’s grew 0.5 percent, and Houston’s increased by 0.4 percent. Simultaneously, the housing units-to-population ratio for all these cities was hovering around 0.4 from March to June, below the national average. 

Strong labor markets and the California-to-Texas migration have led to a surge of new residents in these cities. But builders have struggled to keep pace with the influx. The post-pandemic housing boom compounded low housing inventory, as many buyers became desperate to snag a home while prices seemed like they would skyrocket to no end. 

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From June 2019 to June 2023, prices appreciated in DFW by a staggering 49 percent, only behind Orlando’s 58 percent. Home values in San Antonio appreciated by 42 percent during that five-year stretch, which was slightly less than the national average. 

Developers are working to capitalize on the population surge and increased housing demand, especially in DFW, where over 74,000 apartment units are in the pipeline. However, many developers are putting those projects on the back burner, waiting for high interest rates and construction costs to come down and the market to recover more broadly. Thus, it could take a while for new developments to be completed and alleviate housing shortages. 

From January through May of this year, the number of building permits issued per capita in DFW was just 0.3 percent, ranking eighth among the metros tracked by the Bank of America Institute. Austin had the fourth most issued permits per capita, Houston ranked sixth and San Antonio was 10th. 

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ConstructionDallasHousing Shortagehousing supplyHoustonMultifamilySan AntonioSingle Family Homes