MOVE OVER, MCMANSION

Dallas-Fort Worth booms as Texas' biggest market for $10 million homes sold in 2022

Two-story modern luxury home with a swimming pool

Growth in the ultra-luxury housing market in Dallas-Fort Worth shows no sign of slowing.

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As a market for homes for the ultra-rich, Dallas is strong and growing, according to a new report. The $10M+ National Luxury Report for 2022 from real estate brokerage Compass cites 11 local sales of over $10 million homes in 2022; the previous year, there had been 10 such big sales.

The report is for all sales in the area and based on MLS data.

Affluent areas in Dallas-Fort Worth have landed in several wealth reports lately, from the richest cities in Texas to the wealthiest cities in America.

In the Compass report, DFW holds the top spot in Texas for the $10 million-plus category of home sales, with $145.79 million in sales volume. Austin posted five sales worth a total of $55.95 million, and in Houston, just one home in this category sold last year.

So, how much did those uber-expensive homes go for? In Dallas-Fort Worth, the top listing-represented Compass Regional Sale was $20 million and the highest buyer-represented sale was $14.65 million. The average price of a sale in this category was $13.25 million in Dallas-Fort Worth and $11.19 million in Austin.

For a nationwide comparison, the top selling price was $56 million in Manhattan, $44.5 million in Greater Los Angeles, and $48.5 million in Palm Beach County, Florida.

Dallas-Fort Worth, Houston and Austin were the only areas included from Texas, and DFW easily bests its neighbors down south.

Two current high-profile listings over $10 million include a magnificent White Rock Lake mansion next to Dallas' famed "Mount Vernon," on the market for nearly $12 million; and a $20 million estate in Southlake that has gone viral on social media.

"Despite the weakening global economy, we expect the Dallas luxury market to remain strong in 2023," says a representative of Compass brokers Amy Detwiler & Michelle Wood. "Overall activity will likely normalize after the brisk volume seen during the previous two years, but limited inventory will keep the market in balance."

Is a strong luxury market a good thing for buyers or sellers? Inquiring minds can always consult with the 1 percent for the answer, but it's definitely good news for real estate brokers.

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No Cap

Dallas was a top-10 destination for Gen Zers on the move for 2023

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Who wouldn't want to live in a Gen Z paradise like Dallas?

As Gen Z enters adulthood, many are flocking to the nation's biggest cultural hubs like New York City, Los Angeles — and now Dallas, which had the ninth-highest inflow of Gen Zers in 2023.

Dallas' new reputation as a Gen Z hotspot was unveiled in a recent report by American home improvement brand This Old House, which analyzed migration trends across multiple generations using 2023 U.S. Census Bureau data.

Dallas saw an influx of 13,770 Gen Z residents last year to become the generation's No. 9 most popular city. That's 4,223 more Gen Zers than the net migration rate from 2022, the report found.

Real estate marketplace Zillow seems to agree on a statewide scale, declaring Texas as the No. 1 destination for Gen Zers on the move in 2024.

However, as Gen Z Dallasites may have learned, it's going to take a big bite out of their paychecks to live in such a highly sought after city. A March RentCafe housing cost analysis predicted Gen Z adults living in Dallas are likely to spend over $149,000 on rent by the time they are 30 years old.

While Dallas saw big gains in its Gen Z population last year, many other big cities saw a mass exodus. Plano, for example — which gained 1,295 Gen Z residents in 2022 — lost 4,028 Gen Zers in 2023, the report discovered.

The biggest Gen-Z exodus was in El Paso, with a drop of 5,607 — "a sharp turn from 2022 when the city saw an increase," the report said. "Other cities, including Plano, Texas; Memphis, Tennessee; McKinney, Texas; and Wichita, Kansas, are seeing similar declines."

"Gen X, baby boomers, and the Silent Generation are also moving away from major cities, particularly New York City and Washington, D.C.," the report said. "They’re heading to some of the same cities as Gen Z, including Houston and Jacksonville, Florida."

The top 10 cities that gained the most Gen Z residents in 2023 are:

No. 1 – New York City, New York
No. 2 – Los Angeles, California
No. 3 – Houston, Texas
No. 4 – Philadelphia, Pennsylvania
No. 5 – Chicago, Illinois
No. 6 – San Diego, California
No. 7 – Seattle, Washington
No. 8 – Charlotte, North Carolina
No. 9 – Dallas, Texas
No. 10 – Minneapolis, Minnesota

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