Judging by a new ranking, the North Texas housing market is hotter than a sweltering summer day. Frisco, McKinney, and Allen claimed the top three spots on a new list from personal finance website WalletHub, and another five Dallas-Fort Worth cities landed in the top 25.
To determine the best real estate markets in the U.S., WalletHub compared 300 cities of various sizes across 22 key indicators of attractiveness and economic strength for housing markets. The data ranged from appreciation of home prices to local job growth.
The Frisco-McKinney-Allen trio were first through third, respectively, in the WalletHub ranking, thanks in great part to their high rankings for affordability and economic strength.
Among other DFW cities, Richardson was No. 7, followed by Denton (No. 10), Fort Worth (No. 15), Irving (No. 21), Grand Prairie (No. 39), Garland (No. 41), Plano (No. 44), Dallas (No. 84), Arlington (No. 86), and Mesquite (No. 112).
WalletHub analyst Jill Gonzalez points out that in Frisco, almost 15 percent of the homes were built between 2010 and 2016, contributing to the suburb’s ranking as the top real estate market in the U.S.
Bill Head, a spokesman for the MetroTex Association of Realtors, says the housing markets in Frisco, McKinney, Allen, and Richardson — the top four DFW communities on the WalletHub list — all have benefited from growth around State Highway 121 and the Bush Turnpike.
“The affordability of homes in those four areas is key to why they are attractive to homebuyers,” Head says. “That could be said in countless other communities around DFW, but the combination of both business and residential development in those areas cannot be understated.”
Head notes that the North Texas real estate market seems to be stabilizing, coming off the recent highs experienced during the housing boom. For instance, the number of single-family home sales in the region inched up just 2 percent during the first seven months of 2018 compared with the same period in 2017.
“Sales and pricing should start to steady as more homes come on to the market, and buyers will have more selection,” Head says.
On the WalletHub list, Fort Worth was No. 3 among large U.S. cities, McKinney was No. 1 among midsize cities, and Frisco, Allen, and Richardson all were in the top five among small cities.
In other major markets in Texas, Austin was No. 36, followed by San Antonio (No. 173), and Houston (No. 215).
Austin ranked eighth among large U.S. cities, with Dallas at No. 17, San Antonio at No. 36, and Houston at No. 47.