For the first time since the national housing crash, home buyers this summer may have an easier time purchasing a home in Dallas proper than in nearby suburbs. That’s because homes in the suburbs since June 2021 have been appreciating faster than central city homes, shows the latest report from Zillow.
Home prices have continued to rise at an unprecedented pace across the board, but the report reveals a reversal of typical market trends. From January 2013 — about the time when home values began to recover following the housing crash — through June 2021, urban homes typically gained value more quickly, says Zillow economist Nicole Bachaud.
Right now, the average home value in the City of Dallas ZIP codes is $293,570, a year-over-year gain of $56,492, while the average suburban ZIP code house is $353,094, which represents a $77,878 increase over the past year.
“Even through the the beginning of the pandemic, home values in urban areas generally outpaced suburban areas, counter to what many expected during the rush for more space,” Bachaud says. “And while urban home value gains have continued to accelerate, the suburbs are even hotter, showing just how strong demand is for limited suburban inventory. That could mean competition for homes will be lighter near city centers this home shopping season, something we haven’t been able to say for nearly a decade. That’s not to say shopping for a home in the city will be a leisurely affair, but any sliver of opportunity for buyers is welcome in this market.”
Faster home value growth in the suburbs comes as remote work has changed the U.S. housing landscape. Research from the National Bureau of Economic Research found the shift to remote work is responsible for more than half of the gain in U.S. home prices since late 2019, and that the evolution of remote work is likely to have a major impact on the future path of home values.
You can peruse this new market report here.