Dallas-Fort Worth Income Growth Outpaces Housing Costs
Income growth outpaced increases in housing costs in Dallas-Fort Worth last year, bucking a trend seen in some other large Texas metros like Austin and Houston, according to newly released U.S. Census estimates.
Median incomes in North Texas neared $93,000 last year — a 3.7% growth rate that outperformed the state average and was matched only by San Antonio when compared against the state’s four largest metros in 2024 inflation-adjusted dollars.
D-FW’s median monthly rents and homeowner costs were the second most-expensive in the state, but the wage growth may help with the region’s growing affordability issues.
Earlier census estimates show housing costs for renters and owners outstripped wage growth in D-FW between 2022 and 2023.
“The wage growth picking up — that helps bring affordability back,” said Ted Wilson, the principal of Dallas-based new home market research firm Residential Strategies Inc. “For the Texas miracle to continue, we’ve got to keep housing affordable.”
Understanding the Trends
To understand the current trends in the Dallas-Fort Worth housing market, it’s essential to look at the data. The median income in North Texas has increased, which is a positive sign for the region. However, the housing costs are still relatively high, and the affordability issues persist.
The good news is that the income growth is outpacing the increases in housing costs, which could help alleviate some of the affordability issues in the region. However, it’s crucial to continue monitoring the situation and making adjustments as needed to ensure that the housing market remains accessible to all.
The Cost of Owning a Home
Homeowners with a mortgage in North Texas paid $2,491 in owner housing costs in 2024. That’s a 2.6% increase from 2023, but below rates in the Austin and Houston metros.
One of the country’s largest housing markets, D-FW saw median home values hit $389,500, up from nearly $385,000 a year earlier.
Households in D-FW with a mortgage numbered 1.12 million, nearly 10,000 more than in 2023. Incomes and home values were even higher among this group.
Median income for mortgage holders rose to $137,001, up 4.6% year over year. Home values also jumped among this group, hitting $414,600 — up from $399,300 last year.
North Texas Renters and Rent Hikes
Renters make up a growing share of households in North Texas, and they continue to spend a large portion of their incomes on rent.
The metro’s number of renter-occupied housing units topped 1.2 million in 2024, up 15,000 from the prior year. Median rents rose to $1,718, a $70 increase. The nearly 2% rise outpaced the statewide average.
Austin and Houston saw rents drop, while San Antonio saw rents rise nearly 3%.
Nearly 43% of renters in the D-FW spent 35% or more of their income on housing, a slight decrease from 44.3% the previous year.
Housing Shortage and Affordability Issues
Despite the positive trends in income growth, the region is still experiencing a housing shortage. The estimated housing deficit in D-FW hit 49,204 in 2023 — that’s the number of families “doubling up” by living with non-relatives, minus the units available to buy or rent, according to the most recent data from Zillow.
As of 2022, the city of Dallas had a 39,900 unit gap in affordable rental housing. The shortage is expected to grow to 76,100 units by 2035, driven by a loss of 54,000 unrestricted affordable housing units, according to data from the Child Poverty Action Lab.
Bryan Tony, the executive director of the Dallas Housing Coalition, said the group’s goal over the next few years is to create more housing type diversity within city limits to address affordability issues.
“We need to create more housing opportunities, and that’s what we’re hoping will happen here in the next couple of years,” he said.
Conclusion
In conclusion, the Dallas-Fort Worth housing market is experiencing a positive trend in income growth, which is outpacing the increases in housing costs. However, the region still faces affordability issues and a housing shortage. It’s essential to continue monitoring the situation and making adjustments as needed to ensure that the housing market remains accessible to all.
The good news is that the income growth is helping to alleviate some of the affordability issues, and the region is taking steps to address the housing shortage. With the right strategies and policies in place, the Dallas-Fort Worth housing market can continue to thrive and provide affordable housing options for all residents.
Frequently Asked Questions
Q: What is the current median income in North Texas?
A: The current median income in North Texas is nearly $93,000.
Q: How does the income growth in Dallas-Fort Worth compare to other major Texas metros?
A: The income growth in Dallas-Fort Worth outperformed the state average and was matched only by San Antonio when compared against the state’s four largest metros in 2024 inflation-adjusted dollars.
Q: What is the median monthly rent in Dallas-Fort Worth?
A: The median monthly rent in Dallas-Fort Worth is $1,718.
Q: How many renters in D-FW spend more than 35% of their income on housing?
A: Nearly 43% of renters in the D-FW spend 35% or more of their income on housing.
Q: What is the estimated housing deficit in D-FW?
A: The estimated housing deficit in D-FW is 49,204.
