Big comeback

Dallas and Fort Worth rank among top U.S. markets for housing recovery

In the second quarter of 2017, home prices in the Dallas area were 56.7 percent above their peak values in the mid-2000s, just before the recession; for the Fort Worth area, it was 47.5 percent.

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As a testament to the region’s healthy economy, both the Dallas and Fort Worth housing markets have fully recovered — and then some — from the price declines they sustained during the Great Recession.

A new indexfrom mortgage website HSH.com shows Dallas-Plano-Irving ranks third among the 100 biggest U.S. metro areas for the level of home price recovery since the recession, while Fort Worth-Arlington ranks fifth.

In the second quarter of 2017, home prices in the Dallas area were 56.7 percent above their peak values in the mid-2000s, just before the recession; for the Fort Worth area, it was 47.5 percent.

Elsewhere in Texas, Austin ranks No. 2, with home prices 60.6 percent above their peak in the mid-2000s, and Houston is No. 4, with home prices 47.8 percent above their peak, according to the HSH.com index.San Antonio isn’t far behind at No. 8, with home prices 37.2 percent above their peak.

Topping the HSH.com list is the Denver metro area, where home prices in the second quarter of 2017 were 69.6 percent above their mid-2000s peak.

The HSH.com index crunches data from the Federal Housing Finance Agency as a basis to determine which housing markets have fully recovered — or even more — since the recession and which still lag behind the housing recovery.

In April, TenX, an online marketplace for real estate transactions, put Dallas at No. 2 on its list of the healthiest U.S. markets for single-family homes. Down further in the ranking were San Antonio (No. 11), Fort Worth (No. 12), Austin (No. 13), and Houston (No. 35).

In releasing the list, TenX noted single-family homes in the Dallas area remain inexpensive relative to household income.

“Thanks to its diversification, Dallas benefits from superior population growth and a solid economic forecast, both of which should continue fueling the metro’s housing market,” TenX said.

However, a June report from insurance giant Nationwide identified Dallas-Plano-Irving as one of the 10 most troubled housing markets in the U.S. during the first quarter of this year. The area ranked 396th among 400 metro areas for the health of U.S. housing markets. Dallas-Plano-Irving was the only one of the country’s 40 largest metro areas to show up in the report’s bottom 10.

Nationwide says the report’s negative ranking for the Dallas market was “mainly due to worsening affordability.”

The San Antonio market earned a positive ranking in the Nationwide report, while the rankings for Austin, Fort Worth, and Houston were neutral.

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bang for your buck

These are the 10 most affordable ZIP codes for Dallas-area renters

Photo by Jenifer McNeil Baker for Greystar

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Buying a home in Dallas is difficult enough to afford these days, and doubly so if you're already paying high rent on an apartment or a house. But there are 10 Dallas-Fort Worth ZIP codes where renters can get the most bang for their buck, according to a new study by financial services company CashNetUSA.

To find the most affordable ZIP codes to rent in the U.S., analysts compared median household incomes by ZIP code to the average annual rent costs using the Zillow Observed Rent Index. ZIP codes where the average annual rental costs required the lowest percentage of median household income were considered the "most affordable."

Two Dallas suburbs and their ZIP codes specifically stood out in CashNetUSA's ranking of the most affordable ZIPs for renters across the Metroplex: 75013 in Allen (No. 1) and 75033 in Frisco (No. 2).

According to the study's findings, the average monthly cost of a rental in Allen comes out to $1,716.45, and the median annual income of an Allen household is $145,220. Analysts then calculated that the annual rent of a home in the Allen ZIP code only takes up 14.18 percent of a household's median income, which is the No. 1 lowest in Dallas-Fort Worth.

Allen was recently named one of the best small cities to live in, with a scorching hot real estate market to match its thriving popularity and growth.

In Frisco's 75033 ZIP, annual rent costs only represent 14.89 percent of a household's median annual income. The area – which encompasses the Meadow Hill Estates, Preston Highlands North, Christie Ranch, Newman Village, Shaddock Creek Estates, and Collin neighborhoods – has a median household income of $149,525, and average rent costs add up to $1,855.49, according to the study.

Meanwhile, Dallas' own 75214 ZIP code ranked No. 8 in the metro-wide ranking of most affordable ZIPs for renters. This area consists of several established Dallas neighborhoods, including Northeast Dallas, Wilshire Heights, Lakewood, Lakewood Hills, Junius Heights, and Munger Place.

The median annual income for a household in 75214 comes out to $104,583, and the average rental costs $1,669.40 per month. That means annual rent payments account for 19.15 percent of a household's median income, according to the study.

The seven other ZIPs that make up the top 10 most affordable ZIP codes for renters in Dallas-Fort Worth include:

No. 3 – 76248 in Keller
No. 4 – 76085 in Weatherford
No. 5 – 76262 in Roanoke
No. 6 – 75078 in Prosper
No. 7 – 75048 in Sachse
No. 9 – 75077 in Highland Village
No. 10 – 75093 in Plano

Top ZIP codes for renters in the U.S.
CashNetUSA found the No. 1 most affordable ZIP code for renters nationwide is 66224 in Leawood, Kansas, where annual rent only takes a 10.57 percent cut out of a household's median annual income.

Elsewhere in Texas, San Antonio's 78248 ZIP ranked as the No. 4 most affordable ZIP code for renters in the U.S., and the No. 1 most affordable ZIP code statewide.

Two Houston-area ZIP codes – 77401 and 77094 – ranked No. 9 and No. 12 nationally, while Allen's 75013 ZIP code fell two spots behind to claim the No. 14 spot.

frisco suburbs zip codes rent