North Texas is the country’s most active home-building market, and there are no signs of slowing.
The Dallas–Fort Worth metro led the nation in new home construction for the seventh year running, the Dallas Business Journal reported, citing Zonda. The region edged out Houston, San Antonio and Austin, which were also in the top five, and outperformed larger metros, where regulatory hurdles and affordability issues have slowed growth.
Metros were ranked by home building permit volume over the past 12 months. Analysts say DFW’s combination of available land, pro-growth infrastructure and flexible zoning have kept supply flowing even amid high interest rates and macroeconomic headwinds.
“Texas’ regulatory regime around housing combined with provision of infrastructure allow it and its cities to provide housing at a scale that is functionally illegal across the rest of the country,” said Adam Perdue, a director at Zonda Advisory.
That permissiveness has translated into real momentum on the ground. New home sales in DFW hit a high for the year last month at 2,129, up 10 percent from April and 7 percent year-over-year, according to HomesUSA. Average time on market dropped to 143 days, down from 148 the month before, signaling quicker turnover amid seasonal demand.
Pending sales also ticked up, suggesting sustained buyer interest heading into the summer. But analysts say June and July will reveal whether the region has reached its seasonal peak or if this year’s sales cycle has more room to run.
Much of the demand is being driven by young buyers. DFW and other top-ranked metros have a higher-than-average concentration of “cuspers” — younger millennials and older Gen Zers — who are entering the housing market after coming of age during the pandemic, Zonda analysts said.
Top builders in the region include D.R. Horton, Lennar and Green Brick Partners. Each has pressed on to expand their presence in the Metroplex despite broader market uncertainty.
— Judah Duke