Housing Report

Here's how COVID-19 has impacted the Dallas housing market

Dallas rents actually increased a bit in June.

Photo courtesy of Abodo

Dallas apartment rent prices seem mostly unaffected by COVID-19 — at least thus far, according to apartment marketplace Abodo.

The site reports that in June, Dallas one-bedroom rent prices actually increased 1.28 percent month-over-month, to a median $1,184. At the same time, two-bedroom rates rose 0.83 percent, to $1,466.

These figures are in contrast to what the Austin rental market has experienced. There, the price of a one-bedroom unit dropped 0.31 percent in June, while two-bedrooms fell 0.7 percent.

In the current COVID-19 landscape, the Dallas market more closely resembles Houston, where median rents also rose. Houston one-bedroom units gained 0.51 percent to $1,179 in June, and two-bedroom rents surged 1.24 percent to a median $1,466.

While one month’s numbers don’t necessarily mean a rental price spike, instead of a COVID-19 rental price recession, we are currently seeing the opposite in both Dallas and Houston.

The trend is different for the local housing market. The MetroTex Association of Realtors reported that in May, Dallas County home sales dropped almost 35 percent year-over-year, while home prices dipped 4 percent. These are big figures, and there are reasons that the housing market is not mirroring the rental market.

Virtual limitations
During the pandemic, virtual shopping has proven successful for landlords and renters alike. Top apartment rental sites quickly moved to offer significantly developed virtual apartment tour capabilities. Property managers are seeing the benefits of scheduling showings digitally, and many have not missed a beat as they continue to rent units.

But when a buyer is considering a major purchase like a home, a short video peek at the space is, in many cases, not sufficient.

Wary buyers and sellers
With COVID-19 cases rising in Texas, many potential buyers are staying put instead of venturing out to look at properties, which could put them at risk of infection. Conversely, many sellers simply do not want large groups of people in their homes. For some, it's easier to take their property off the market, or even rent out the home, and wait for better times.

Looking ahead
One bright spot for the housing market is that mortgage are at historic lows, which could reduce some of COVID-19’s negative housing market effect. If mortgage rates were anywhere near normal levels, we might see an even greater dip in housing prices. However, as the uncertainty of the pandemic continues, Abodo expects the Dallas market — for both rentals and sales — to face continued challenges.

rent trends

Million-dollar homes

Multi-million-dollar gated home community The Preserve rises in Frisco

Preserve

A palace on the prairie of The Preserve in Frisco

Construction has begun on a multi-million-dollar custom home community in Frisco. Called The Preserve, it's situated among PGA Frisco’s championship golf courses and near the Omni PGA Frisco Resort, with multiple phases that will roll out over the next few years.

The Preserve is part of Fields, a 2,500-acre development in North Frisco off the Dallas North Tollway. Fields is co-developed and owned in partnership with The Karahan Companies, Hunt Realty Investments alongside investors Chief Partners and Cross Tie Capital.

The development will feature retail, dining, entertainment, hotels, corporate offices, native Texas plants, flowers, trees, and 250 acres of park space. It's designed by the same team responsible for Plano’s Legacy West, led by Fehmi Karahan.

Phase 1 of The Preserve will feature 233 homes crafted by 10 North Texas luxury homebuilders: Alford Homes, Coats Homes, and Starside Builders have all begun home construction. The other seven are The Preserve Bella Custom Homes, Endurance Homes, Faulkner Perrin Custom Homes, Hawkins-Welwood Homes, Shaddock Custom Builders & Developers, Sharif & Munir Custom Homes, and Ventura Custom Homes.

All builders will have begun construction by early 2025. It's expected that most of the homes will be complete in the next five years although the ETA will vary by builder.

The Preserve Frisco The Preserve in Frisco, soon to be covered with homes.The Preserve

Lot sizes range from 6,800 square feet to more than an acre. Home design options will incorporate high ceilings, open floor plans, glass walls, and seamless transitions between indoor and outdoor such as patios, infinity pools, and landscaped exteriors.

The surrounding area will have more than 2,000 new trees plus views delivered via design elements such as floor-to-ceiling windows and expansive outdoor living areas.

Many of the homes will address sustainability, health, and wellness with green architecture, energy efficiency, water conservation, and recycled building materials.

It will combine the privacy of a gated community with resort-style living, featuring amenities such as the PGA golf courses, 20+ miles of hike and bike trails, and the exclusive Brookside Club with an expansive swimming pool, state-of-the-art fitness center, tennis and pickleball courts and a playground.

Prices will start at $3,500,000. Lest you think there is no demand, a map shows that more than half of lots, approximately 116, have already been purchased.

Hunt Realty SVP Todd Watson calls it one of the most anticipated mixed-use projects in the area -- æa perfect location for discerning buyers seeking their forever home or a secondary residence" — although he's involved with the project so he's probably biased.

“As part of the Fields development, with prominent neighbors like PGA of America and the Omni PGA Frisco Resort, we know The Preserve will be one of the most sought-after addresses in North Texas," Watson says.

According to the Frisco Economic Development Corporation, Frisco’s population has increased by 500 percent in two decades and was recently recognized as the fastest growing city in Texas and third across the U.S.

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