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These 5 Dallas-area neighborhoods are some of the best places to live in Texas

Quality of schools, crime rates, housing trends, job market, and amenities were all factors.

Photo by Redfin

Spring is here, which means it's home shopping season, and this might help narrow down your search.

Real estate review site Niche compiled information from its users and data from the U.S. Census Bureau to grade neighborhoods and suburbs on factors including quality of schools, crime rates, housing trends, job market, amenities, and more. After all that calculating, five Dallas-area neighborhoods were named among the 10 best places in all of Texas to live for 2019.

Coming in at No. 2, Timberbrook in Plano gets an overall A-plus rating from Niche. The neighborhood (population 5,744) scores mostly As (public schools, housing, being good for families, jobs, diversity, and health and fitness) and some Bs (outdoor activities, nightlife, weather, and commute). The median home value is $291,230, median rent is $390, and the median household income is $116,008.

Timberbrook also earns the title of America's 22nd best place to live. "Living in Timberbrook offers residents a suburban feel and most residents own their homes," Niche says. "In Timberbrook there are a lot of restaurants and parks. Many families live in Timberbrook, and residents tend to have moderate political views."

In the No. 3 spot is Preston Highlands. The far north Dallas neighborhood, which has a population of 4,312, also scores mostly As (public schools, housing, begin good for families, jobs, cost of living, diversity, and health and fitness) and some Bs (outdoor activities, nightlife, weather, and commute).

Preston Highlands' median home value is an affordable $181,854 and the median household income is $97,668. Niche touts the area's restaurants, coffee shops, and parks and notes that "many families and young professionals live in Preston Highlands and residents tend to have moderate political views."

For 2019, Richardson boasts the most neighborhoods in the Texas top 10. Canyon Creek South comes in fourth; Clear Spring Place ranks fifth; and Canyon Creek North is the ninth. All three excel in the major categories Niche identifies, with the exception of Clear Spring Place earning a C in commuting.

Canyon Creek South has a median home value of $346,091 and a median household income of $129,016.

Clear Spring Place and Canyon Creek North are more affordable alternatives, with home values of $240,600 and $291,804 and household incomes of $90,347 and $100,718, respectively.

These neighborhoods are home to a well-regarded city, according to Niche, which ranks Richardson as America's sixth best city for retirees, seventh best to buy a house, and 12th best city to live and raise a family. Richardson also ranks in the top 30 nationwide for its public schools and inviting environment for young professionals.

The title of best place to live in Texas goes to the sought-after San Antonio neighborhood of Terrell Hills. The rest of Texas' top 10 list includes three Houston suburbs, Greatwood (No. 6), Cinco Ranch (No. 8), and New Territory (No. 10), and one Austin neighborhood: the Triangle at No. 7.

out of reach

This is how long it takes to save for a starter home in Dallas right now

Courtesy of Tri Pointe Homes

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A new national housing affordability report has confirmed something many renters already know: The possibility of owning a home is moving further out of reach for many renters across America.

Becoming a new homeowner is especially challenging for households in several major U.S. metros — including Dallas — where it now takes well over a decade to save enough money for a down payment on a starter home.

These findings were unveiled in a new study from The Julian Bond Institute for Financial Equity Research (JBI), a nonprofit research branch of the Center for Responsible Lending (CRL). The report comes as a result of its Project 2050 Survey that analyzed "Americans' financial aspirations across generations and racial groups and the obstacles they encounter in achieving them."

JBI said Americans of all generations, racial backgrounds, and ethnicities haven't given up on "this aspect of the American dream," but the journey towards becoming a homeowner is "grow[ing] exceedingly challenging." In addition to saving for a down payment and closing costs, renters must also navigate high mortgage rates and high home prices. All of these combined factors have pushed monthly payments out of reach for most families.

"There has been much coverage of the difficulty aspiring homeowners face in being able to afford the monthly payments on a home loan," the report said. "But less attention has been given to an equally important part of the housing affordability squeeze: The impact that higher home prices and the affordability crisis are having on the ability of families to save enough money to afford the upfront costs of homeownership."

Using the results from a previous 2019 survey and the most recent survey results, JBI examined how many years it would take a typical renter family to save enough money to cover a down payment and closing costs for a starter home in the U.S. and in its 10 biggest metros.

The report found that it now takes the typical Dallas renter household 12 years to save for a starter home in 2026, up from 7 years in 2019. And Dallas technically appears on the lower end of the spectrum out of the 10 biggest U.S. metros.

"Although there is some variation across these areas, even in Houston — where the years to save is the lowest — it would take the typical aspiring homeowner 11 years to save enough money to purchase a starter home," the report said. "At the opposite end of the spectrum, in Los Angeles, it would take 24 years. And in all these areas, there has been a sizable increase in the number of years required to save since 2019."

For the typical American household, it now takes 16 years to save for a starter home, a figure that has doubled since 2019. That's based on an American median renter household income of $57,991, and an estimated saving rate of 2.63 percent. The report defines the saving rate as the percentage of a family’s income that can be set aside for the purchase of a home after expenditures, assuming that aspiring homeowner families can devote 75 percent of their savings toward a home purchase.

"[This] translates to annual savings of roughly $1,525," the report found. "For such a family, it would take 16 years to accumulate enough savings to purchase a starter home [at the median price of $335,574]."

Renter households that made $42,750 in income at a 3.96 saving rate would result in $1,693 saved for the purchase of a home in 2019. By those metrics, it would take the typical renter household eight years to save for a starter home at the 2019 median price of $217,520.

This is how many years it takes to save for a starter home in the 10 biggest U.S. metros compared to 2019, from longest to shortest:

Los Angeles: 24 years, up from 14 years in 2019
New York City: 23 years, up from 10 years
Miami: 22 years, up from 10 years
Washington, D.C.: 16 years, up from 8 years
Chicago: 15 years, up from 8 years
Philadelphia: 15 years, up from 8 years
Phoenix: 15 years, up from 8 years
Atlanta: 13 years, up from 7 years
Dallas: 12 years, up from 7 years
Houston: 11 years, up from 8 years

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