Have you heard the news? Dallas is in the running for the next Amazon headquarters, which could mean big things for the city – including higher than ever home prices, unfortunately. Along with Austin, Dallas has been one of the front-runners for Amazon HQ2, beating out cities across the rest of the country and the globe, for that matter. Dallas is considered a strong contender, even being named as the top choice by various algorithms. According to a recent Texas Tribune article, Dallas is taking an “aggressive” approach to the bidding war for Amazon HQ2. In the city’s application for Amazon HQ2, a promotional video was included that shows just what a wonderful place to live Dallas is. The business community and political landscape of Dallas are just a couple of the things that make it an attractive option.
As we’ve seen in recent years, the Dallas-Fort Worth region has become one of the most well-respected and desirable areas. We have seen a major increase in the number of people moving to the area, thanks to a booming economy, opportunity for career advancement, great school systems, and excellent sense of community. In addition to both Dallas and Austin, another Texas city – Arlington – was also in the running. However, in May the city announced Amazon passed, stating they were looking for a “more advanced urban setting.” Given this reasoning, Dallas has a very good shot of being selected.
How Will HQ2 Impact the Housing Market?
Last year, Amazon received 238 proposals from cities – both large and small – to host its next headquarters. The top 20 finalists are major metropolises, which should come as no surprise. According to the tech giant, Amazon HQ2 will cost $5 billion to build and has the potential to create 50,000 jobs. While this would certainly mean good things for the already-booming Dallas economy, what will this mean for the housing market? Home inventory in Dallas and North Texas remains at a historic low, making it difficult for people to find the home of their dreams, in the area of town they want. According to Zillow, the total inventory of homes for sales fell nearly 9 percent over the last year. People are getting outpriced and struggling to keep up with the high demand. If Dallas is selected as the home for Amazon HQ2, the low housing inventory and high home prices will create even more problems for potential buyers.
With an estimated 50,000 jobs said to be created with Amazon HQ2, these housing concerns will need to be addressed. The many flourishing neighborhoods and cities surrounding Dallas – including Frisco – are also growing at an alarming rate because of this surge within the housing market. As Frisco Realtors, we have seen firsthand how the growing population has impacted the housing market. Home price gains have continued throughout North Texas, even though the majority of the country is experiencing low inventory.
For now, we will continue to keep a watchful eye on the story and see what Amazon decides. Although Dallas is considered a top finalist in the bid for HQ2, the exact location of the new corporate site is unknown. Because DFW does not have a state income tax and North Texas is generally known for its low cost of living, there is a very good chance we’ll be sharing the good news with you soon. However, if Dallas is selected, the home prices will most definitely skyrocket more than they already have. Coupled with the fact builders are having a hard time keeping up with the demand, something will need to be done in order to accommodate the increase in population.
If you have questions about the current state of the housing market in North Texas, please contact The Cheney Group. We have answers to all your real estate questions and are here to help you buy or sell a home in Frisco and the surrounding North Texas communities.