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Zillow reveals how fast home values are rising in Dallas-Fort Worth

Home values at all price tiers are on the rise.

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The spring selling season is underway, and those looking to purchase a home in Dallas-Fort Worth should expect to pay a premium — regardless of price point — Zillow says.

A new study from the real estate authority shows that the annual appreciation of DFW home values at all price tiers was at least 8 percent in February 2021, with home values in the most affordable tier growing the fastest.

In the Dallas-Fort Worth metro, the lowest tier of home values grew 9.5 percent year-over-year, to a typical home price of $194,484, Zillow says. That rate slightly outpaced home values in the middle tier, which were up 8.9 percent to $278,259, and home values in the top tier, which grew 8.6 percent to $445,949.

In most major U.S. metro areas, "homes in the entry-level segment of the market most likely to be sought by first-time and/or lower-income home buyers have also grown the most in value over the past year," Zillow says.

Two other Texas metros follow the national trend:

In the San Antonio metro, the lowest tier appreciated at a rate of 7.9 percent, to a typical home value of $153,904, compared to 7.3 percent for the top tier.
In the Houston metro area, the lowest tier saw a 9.3 percent increase, to $166,556, compared to a 7.4 percent increase for the top tier.

In Austin, however, home values in the most expensive tier grew the fastest, up 14.9 percent to $666,034. At the same time, the lowest tier of home values in the Austin metro area grew 14 percent year-over-year.

“Demand for homes in the Dallas, Houston, and Austin metros is largely uniform across price tiers," notes Zillow economist Arpita Chakravorty. "While home values in the most affordable segment are growing the fastest in Dallas and Houston, the mid- and higher-valued homes are quickly catching up due to strong demand. The spread between appreciation rates in Austin is tightening as well, indicating extreme competition across all price tiers."

Whether you're in the market right now or planning to house hunt in the future, don't expect things to slow down.

Looking ahead, Zillow expects the typical home value in each of the Texas markets mentioned to grow by at least 10 percent by next February. For Dallas-Fort Worth, Zillow predicts a 12.6 percent price increase — the largest in the state.

Anna Land Buy

Cox Family sells 116 acres in Anna for mixed-use development

Courtesy photo

Anna, Texas

A major land sale in Anna is paving the way for new mixed-use development. According to a release, Frisco-based Rockhill Capital & Investments struck a deal with the Cox Family to acquire 116 acres at County Road 371 and SH-5, approximately two miles east of US-75.

Younger Partners Executive Managing Director John St. Clair, Vice President Tyler Hemenway, and Associate Davis Willoughby represented the seller in the transaction. The sales price was not disclosed.

Rockhill will sell fully entitled tracts of land to homebuilders, multifamily, and commercial developers.

The single-family portion will be built in phases with development of 325 single-family lots, says Rockhill Chief Development Officer Brent Libby in a statement.

“Construction will likely begin early in Q2 2025,” Libby said. “We’ve already sold 82 of the 116 acres to homebuilder Taylor Morrison and they should break ground first.”

The remaining acres are already being snapped up including 9.5 acres on SH 5 that is under contract to a commercial developer, and interest from a user/developer on the remaining 24 acres, which is zoned for multifamily.

The Cox Family owned the land for decades and had received multiple offers on the property over the years, but were never ready to sell.

“Ultimately, the family wanted to capitalize on the land market before unforeseen market factors took place,” said St. Clair of Younger Partners. “This deal took place at the right time with the right buyer.”

The acquisition nvolved a lengthy zoning process to acquire the land. Rockhill created a Public Improvement District (PID) on the single-family portion of the land, which helped the deal move forward.

Rockhill already has land holdings in nearby high-growth cities of Howe, Van Alstyne, and Sherman, and it ain't stopping here.

“We’ll continue to source and acquire land in the area where we can add value through entitlements, and either develop the property or hold it for some time and exit to another developer or end user,” Libby says.

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