With costs through the roof, DFW builders rarely construct affordable homes

Dallas_Fort Worth_Home_Starts_by_PriceBy @SteveBrownDMN and the Dallas Morning News

North Texas residents looking for an affordable new home may soon be out of luck.

That’s because homebuilders are continuing to focus on the mid and upper-priced market while all but abandoning the lowest-priced new housing.

Starts of new homes in the Dallas-Fort Worth area priced between $200,000 and $250,000 dropped more than 19 percent in the most recent quarter, according to a new report by housing analyst Metrostudy Inc.

And with continued rising costs for land, labor and building materials, it’s getting harder and harder for local builders to produce an entry-level house.

“Over the past two years, starts below $200,000 decreased dramatically while starts between $200,000 and $249,000 remained relatively flat or slightly increased,” Paige Shipp, regional director of Metrostudy’s Dallas-Fort Worth region, said in a new report. “This quarter, starts in that price tranche dropped 19.3 percent, which signals a possible extinction of new homes below $250,000 in D-FW.”

The biggest increase in North Texas starts in the most recent quarter was for homes priced between $300,000 and $400,000. Starts in that price range were up more than 50 percent, according to Metrostudy.

And starts of homes priced $400,000 to $500,000 rose by just over 40 percent. Read More >