May 31, 2024 - News

💸 Home buying power plummets in Dallas-Fort Worth

Change in buying power for homeowners in select Texas cities
The change in buying power, calculated by our data viz team, is a percent change for the 1970 house price/annual income ratio to the present. Data: RealtyHop; Chart: Axios Visuals

Fort Worth residents' home buying power has decreased the most out of major Texas cities in the past 50 years, per an Axios analysis of a RealtyHop study.

Why it matters: Housing inventory is finally starting to increase in Dallas-Fort Worth after years of minimal buying options.

State of play: In February 2022, there were slightly more than 4,000 active listings in the metro. In April of this year, there were about 18,500 listings, per Realtor.com data compiled by the Federal Reserve Bank of St. Louis.

Yes, but: Homes are still drastically more expensive than before the pandemic, with a 44% increase in the Dallas area.

Case in point: The average sales price for a D-FW house rose 3% from April 2023 to this year, reaching $505,446.

Context: Home buying power is the ratio of annual income versus the average house price in 1970 (when boomers started buying starter homes) compared to 2022.

  • Home buying power in Fort Worth decreased 58% from 1970 to 2022, per the Axios analysis.
  • In Dallas, home buying power dropped almost 56%.

The bottom line: Younger generations are spending a larger portion of their income on housing, whether buying or renting.

$11,100 Fort Worth homes

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