North Texas has seen a tremendous amount of growth in this past decade. Duh. Everyone knows that. In fact, over 1.2 million people decided to make our old stomping grounds, their new stomping grounds. Do you even remember when our old stomping grounds had a lot more room to stomp? Remember the days where “bad traffic” in Dallas meant you had to wait seven minutes? Ahh, yes…we now refer to those times as PPD, or more commonly known as “Pre Pandemic Dallas.”
Since the rise and fall of the pandemic, about 300 people are moving to the Dallas metro daily. We see that the growth is deemed beneficial for our city through business development, economic impact, and both commercial and residential real estate. However, we often wonder ‘where will all these migrating people go?’ This is a very practical question given the current status of our housing market is near the bottom of the barrel in inventory. Here’s a fun fact: we’re currently over 200,000 homes SHORT, in terms of demand. How incredible is that?
What’s interesting to see unfold is how Dallas got to this point. A point of growth, enhanced expansions, practical investments, and both big and small moves into this amazing city of ours. The Roaring 20’s are back, and boy, is it something else. For those of you wondering if I’m writing this, while wearing my silk robe, all while smoking my cigar…you’ll have to keep guessing.
Let’s take a look back at post World War II Los Angeles. A thriving city full of young families, high hopes, and development out the roof. Los Angeles was not always the Hollywood we know today. It has grown to become the ‘city of dreams’ from the influx of people who wanted to go and make LA their home after the war. That is what we are seeing in Dallas today. People WANT to move to Dallas not just because of a career move and not just because it is convenient. Los Angeles benefited from the Baby Boom, and Dallas is benefiting from the Pandemic Explosion.
If we mirror the second World War with the 2020 pandemic, we see people’s outlook on life shift, and shift BIG. In the mid-twentieth century, the biggest baby boom happened post-World War II. The end of the War, plus a boost in economic prosperity, kick started people having families and therefore – the Baby Boom. In recent years individuals want to settle down again. They took what they’ve learned through the last two years and decided it is time to make practical investments. Corporations are right there along with them, as to why you are seeing more businesses expand outward and away from Downtown.
Businesses continue to relocate into the practical Dallas-Fort Worth area and developers have had no issues with the growing need. Dallas’ office availability rate within the last 12 months has gone up less than 2%. This is a clear sign that the commercial real estate market in our town is thriving. Demand for office space in the area has surged to about 900,000 square feet, leading in the first quarter of the year. An opposing testament to the popular ‘work from home’ trends we have seen within the past two years across the country.
Within the past six years, six Fortune 500 companies have relocated to Dallas. While these transitions into the metro are beneficial for our economy and growth, the issue comes on the residential side of real estate. Dallas is currently short thousands of homes. As of March 2020, we saw a shortage of nearly half a million residential homes. The good news is that the influx of people will continue to kickstart commercial development with shopping and dining. The growth of these needs will provide job opportunities and, of course, more growth for our beloved city.
Now I’m not saying Dallas will be the next Los Angeles, but it is on track to becoming the most desired city to live in. Practicality is the name of the game these days, and Dallas owns that market. #KeepDallasDallas
Rogers Healy is the founder of Dallas-based Rogers Healy Cos.