As a longtime resident of the Dallas-Fort Worth metro, I have witnessed firsthand the dramatic changes that have occurred in our North Texas region over the last 20 years.
Today, first-time homebuyers and young families are hard-pressed to find viable homes in attractive neighborhoods and school districts for less than $400,000.
I remember when Light Farms, the first master-planned community in Prosper, was comfortably priced in the $200s-$300s. Or more recently, in 2017, when our development in Fort Worth, known as Walsh, opened with new homes starting in the high $200s. Just five years later, homebuilders are now struggling to deliver homes in fast-growing suburbs and urban areas for less than half a million dollars.
The reasons for this affordability crisis are recycled and oft-cited: material costs rising, supply chain issues, permitting delays, and labor force shortages, just to name a few. And let’s not forget the influx of out-of-state and institutional buyers with deep pockets and plenty of cash.
What are the consequences of pricing out the $200K-$400K first-time buyer looking for a place to call home? The teachers, firefighters, and local health care professionals that work and serve our neighborhood can no longer afford to live there. Is that place truly the exceptional and diverse community we envision and aspire to?
I say no. It is time for real estate developers and investors, as well as city officials, to generate fresh ideas and creative solutions to address the current affordability crisis North Texans are facing. The first solution I propose we seriously consider: build-to-rent development.
You may have already seen these much-buzzed-about communities coming to life across the North Texas metro: from Alliance to Cedar Hill to Northeast Fort Worth. They span Tarrant, Denton, Dallas, and Collin counties.
As with anything new or unknown, there is often concern and confusion from neighboring residents and homeowners about what this type of product is, who lives there, and what effect it will have on the existing community and housing market. It is the responsibility of local developers operating in and exploring this space to introduce these projects in a thoughtful and collaborative way. Build-to-rent done well requires an intentional commitment to understanding the unique, existing social fabric of nearby neighborhoods, and it requires the ability and desire to accept and act on feedback from those who already call that place home.
As North Texas companies develop these much-needed communities, we must take care to patiently educate and inform current residents and city officials on the many benefits of the build-to-rent solution. An increase in tax revenue for cities and school districts and the ability to use each new development as an economic engine for local commerce are conversation starters.
As build-to-rent developers, we must commit to creating exceptional places to live while bearing in mind the effect on traffic, drainage, and the natural landscape — no different from the approach of a traditional master plan. In my mind, this means communities with ample green space. It means quality construction and attractive architectural designs. It means creative and thoughtful planning with a personal touch to create a sense of connection. These things create a place where people want to live, stay, and get to know their neighbors.
Beyond economics or execution, build-to-rent is an opportunity to provide generations of people a place to call home. My hope is that the DFW development community does not simply rush to create affordable housing solutions for North Texas residents because they expect high demand but remembers why we do what we do: to give people a place, a real place, to live exceptionally and call home.
Seth Carpenter is the senior vice president of development with Republic Property Group.
