Possible Housing Affordability Crisis in Dallas (Houston, Plano: apartments, rentals, house prices)

[DTXman34]

A great article came out in D Magazine highlighting the likelihood of an affordability crisis in the city of Dallas, especially the urban core, if it does not reduce or eliminate minimum parking requirements or allow for more multi-family and mixed use development in areas of the city zoned exclusively for single family housing. They cite the city of Minneapolis as an example that did just that and saw their rental prices decrease.

https://www.dmagazine.com/frontburne...arking-zoning/

This particular section stuck out if we fail to address this issue. It's not just Dallas, but the whole Texas Triangle:

"Although laws in the Texas Triangle facilitate “horizontal” growth through exurban development, they restrict “vertical” growth, or the redevelopment of built areas. Even cities with loose zoning codes, such as Houston, impose some restrictions. Recent increases in house prices, furthermore, suggest that restrictions on vertical growth are beginning to cause a housing shortage in the region’s more desirable areas. The revitalization of central-city neighborhoods, meanwhile, shows a large demand for urban living that is underserved by today’s zoning codes and other land-use regulations. As horizontal growth reaches its limits, this shortage will only worsen. Unless restrictions on dense development are lifted, especially in urban cores, the Texas Triangle may come to resemble Los Angeles: a vast sprawl of unaffordable housing, beset by slow transportation and diminished social mobility."

[RoamingTX]

Possible? No. It’s super real. I’ve got two duplexes in Central Plano that are rentals I picked up in 2011 for a very good price. Both were in “original” mid-80’s condition and required a ton of updating. Since then, I’ve had a pretty good stream of people renting for a year while they would build or buy in the area.

These last couple of years, the tenants renewed stating that they didn’t want to go much further out, but couldn’t find anything. One couple has lost out on multiple bids because they wanted to keep the price to what one income could afford and start a family.

The crisis is real. The nearby suburbs used to be a place that a median income could afford. Incomes have not kept up with inflation.

[Taynxtlvl]

^ Good points.

It's sad and is being duplicated time and time again especially in the areas closer to the city. More has got to be done on the city and municipal level to make sure that new buildings aren't just at the higher price points. That way more people can afford to potentially make these areas home. This is all connected to the disappearing middle class.

I read an article today on the growth rate of america slowing down and people aging out. Therefore, Many of these people will be on fixed incomes and it will increasingly be hard for people who are older. Add in single income, teachers/firefighters etc, new grads, or those who prefer a frugal lifestyle to make it happen in a lot of these areas.

The grass used to be greener...

[djslakor]

This isn't a "crisis" of affordability. Prices are set at what the market will bear. If the price attracts a buyer, the price was correct.

Cities are allowed to change and attract new inhabitants of different income levels. The city doesn't owe anyone anything. This is only a "crisis" for someone who has no skills / didn't push themselves to achieve anything that could help them afford their previous lifestyle.

DFW was once ultra affordable. Things change. IMHO, it's STILL very affordable compared to other major metros. People whining about how expensive it is now should accept it's only gonna get worse over time.

[RoamingTX]

Originally Posted by djslakor

This isn't a "crisis" of affordability. Prices are set at what the market will bear. If the price attracts a buyer, the price was correct.

Cities are allowed to change and attract new inhabitants of different income levels. The city doesn't owe anyone anything. This is only a "crisis" for someone who has no skills / didn't push themselves to achieve anything that could help them afford their previous lifestyle.

DFW was once ultra affordable. Things change. IMHO, it's STILL very affordable compared to other major metros. People whining about how expensive it is now should accept it's only gonna get worse over time.

The point is that the development and zoning laws prevent much of what your free market approach would allow to happen.

If I could tear down my two duplexes that are on .75 acres and build a complex that housed 6 families instead of 4... I would in a heartbeat. Realistically, I’d probably build it to handle 6 families and 4 young professional types that need affordable housing with a commute to Legacy (18 minutes) or downtown (35 minutes).

The crisis is that there’s no midpoint. It’s apartments in towers or SFH in the Effing boonies.

[DTXman34]

Originally Posted by djslakor

Cities are allowed to change and attract new inhabitants of different income levels. The city doesn't owe anyone anything. This is only a "crisis" for someone who has no skills / didn't push themselves to achieve anything that could help them afford their previous lifestyle.

Ahh yes, the tired old mantra of "lazy people with no skills." Maybe they could work on their skills if they could afford the very basics of living? Or should they just starve and die?

The point is government regulations have made it harder for people to afford housing. By forcing developers to build excess parking, it forces the additional cost on to the renter.

[jiping]

DFW can only support this many people.
The horizontal growth of POPULATION has reach its limits, and vertical growth is inevitable.

DFW is still absurdly affordable for people coming from San Francisco, where median house price is 1.5m to 2m.
If one wants to work on the skills, he may have to do it in Oklahoma City or Phoenix.

[RoamingTX]

Originally Posted by jiping

DFW can only support this many people.
The horizontal growth of POPULATION has reach its limits, and vertical growth is inevitable.

DFW is still absurdly affordable for people coming from San Francisco, where median house price is 1.5m to 2m.
If one wants to work on the skills, he may have to do it in Oklahoma City or Phoenix.

The problem lies where vertical growth is impossible.

[stan4]

Vertical growth leads to overcrowding.

[djslakor]

Originally Posted by DTXman34

Ahh yes, the tired old mantra of "lazy people with no skills." Maybe they could work on their skills if they could afford the very basics of living? Or should they just starve and die?

The point is government regulations have made it harder for people to afford housing. By forcing developers to build excess parking, it forces the additional cost on to the renter.

They are free to move to areas they can more easily afford. The city doesn't owe them a reduced rent. It's not a tired old mantra, it's a fact. The country doesn't owe low skilled, minor contributors to society a phat apartment in uptown. Knowledge is more available than ever now with the Internet.