Land prices aren’t so cheap as people flock to TX

Texas, the land of wide open spaces, had long been known for its abundant supply of cheap land. But that might be changing.

Economic growth and an influx of new residents are pushing up the price of land in the Lone Star State, according to research published this week by the Texas A&M Real Estate Center. As a result, land costs are accounting for an increasingly larger share of the price of a home here, while remaining low compared to the U.S. as a whole.

Statewide, 20.4 percent of the cost of a typical single-family home went to the land in 2016, up from 5 percent in 2011, the research shows. In Houston, the share rose to 25.1 percent in 2016 from 7.1 percent in 2011, the steepest incline among other large Texas markets.

The median price of a home in Texas rose from $138,000 at the beginning of 2011 to $230,500 in April, while in the Houston metro area it increased from $136,950 to $240,000, according to the real estate center.

In many parts of the state, a tight supply of homes on the market and a shortage of construction workers — problems that plague large parts of the U.S. — are causing home prices to surge.

Economic growth is drawing thousands of new residents to Texas, but there is a limited supply of land that is available to be developed, with access to all the required infrastructure, said Jim Gaines, the real estate center’s chief economist. He noted that municipal fees, such as impact fees intended to cover the cost of water infrastructure, are also on the rise.

“It’s a common-sense, obvious thing — as you grow the number of people and households, they’re going to need housing somewhere,” Gaines said. “The supply of the land is fairly plentiful, but supply is always relative.”

At 20.4 percent of the cost of a home, Texas land prices are still relatively cheap compared to elsewhere in the U.S., according to Texas A&M’s research. In 2016, the cost of land accounted for 33.5 percent of the price of a typical home nationwide, up from 24.8 percent in 2011.

But Texas has lost some of its edge in home affordability, which has historically helped the state attract residents from elsewhere, according to the research. In 2016, the median price of a home in Texas was 78.8 percent of the nationwide median, while in 2005 it was 61.6 percent.

Land prices are likely to continue their rise while Texas’s economy grows, Gaines said.

In San Antonio, land prices contributed to 15.2 percent of the cost of a home in 2016. In the Dallas metro area, land costs accounted for 29.4 percent of the cost and in Fort Worth, 22.4 percent.

“Until we figure out how to develop and convert that raw developable land into developed land, and to it at a cost-efficient ratio,” Gaines said, “we’re going to have this continuing thing.”

rwebner@express-news.net

Nancy Sarnoff contributed.

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BRT Apartments adds property in Dallas/Ft. Worth, Texas

BRT Apartments (NYSE:BRT) acquired Landings of Carrier Parkway, a 281-unit multi-family property located in Grand Prairie, Texas for $30.8M through an entity in which it has a 50% equity interest.

The acquisition price of $30.8M includes $19M of mortgage debt maturing in 2028.

The company contributed $7.3M of equity in connection with the acquisition and anticipated improvements to the property.

The Company has acquired six multi-family properties for a total purchase price in excess of $230 million in fiscal 2018.

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Fort Worth real estate agency Trademark Property Co. to build the future of the Galleria Dallas – Dallas Business Journal

Trademark Property Co. will work with retail, design, real estate, and development experts, along with city and community leaders, to develop a plan for one of Dallas’ most iconic shopping spots.

UBS Asset Management, which owns the Galleria Dallas, has hired Fort Worth-based Trademark to manage, lease and evolve the 1.4-million-square-foot development.

The Galleria is the “gateway” to the planned Midtown project, which is slated to bring 450 acres of new office, multifamily, retail and entertainment developments, as well as a city-programmed park. While apartments and office space are planned for the development, most construction has stalled due to disagreements over zoning and public sector initiatives.

Planning for the Galleria and surrounding property will begin immediately, UBS said in a news release, and will use feedback on what the future of the property should look like. Trademark will work with UBS to create a strategic plan and develop initiatives based on market and customer research, best practices and innovations in retail.

“We see enormous potential in Galleria Dallas as a true destination-worthy mixed-use district and gathering place for North Texas,” Trademark CEO Terry Montesi said in a prepared statement. “People expect more from mixed-use places today than ever before. We intend to consider every option as we evaluate how best to evolve Galleria Dallas – from the addition of other uses, improved service and experience, to added technology, destination-worthy common areas, and a thoughtful collection of best-in-class retail and restaurants. It’s about identifying strategies that fit the changing role of brick and mortar retail and mixed-use places in customers’ lives.”

Trademark has also worked on developments like Dallas’ Victory Park and Fort Worth’s WestBend.

North Texas Commercial Real Estate Developers

Ranked by Local Commercial Space Developed in 2016 (in sq. feet)

Rank Business name Local Commercial Space Developed in 2016 (in sq. feet) 1 KDC Real Estate Development & Investments 4.25 million 2 Trammell Crow Co. 3.90 million 3 Hillwood 3.10 million View This List

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Surprise? It Costs More To Rent A Luxury Apartment In Houston Than In Dallas Or Austin

Want to live in luxury in Texas? It will cost you more in Houston than in Dallas or Austin.

A high-end apartment in Houston costs about $1,448/month, RentCafé reports, using data from Yardi Matrix. In Dallas, the average is $1,428, and in Austin it is $1,432. Houston and Dallas have the same spread between high-end and low-end multifamily offerings: $490. Austin’s gap is smaller; residents only have to fork over $371 more to make the quality leap in the capital.

The cost of living in Texas is still lower than much of the U.S. The national average rent in a high-end building is $1,640/month.

Dallas may overtake Houston soon for priciest apartments. Its luxury rents have increased 7.4% in the past three years. Austin’s have risen 6.7%, while Houston’s are only up 1.8% since 2015.

The amount of multifamily supply coming online is expected to drive apartment rents down across the nation. Most of the multifamily projects that delivered in 2017 were high-end apartments. Dallas and Houston are among the top 10 cities in the nation with the most apartment inventory scheduled to deliver this year. New supply is expected to level off in 2019.

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Texas Realtor Tony Nuncio Achieves 5-Star Status in Dallas/Ft. Worth – Dallas Business Journal

DALLAS, May 1, 2018 /PRNewswire-PRWeb/ — For the sixth consecutive year, Dallas native and Realtor Tony Nuncio, founder of The Nuncio Realty Group at Dallas City Center Realtors, was named a 5-Star Real Estate Professional by Texas Monthly Magazine.

"I’m honored and humbled by my recent selection as a 5-Star Real Estate Professional in the Dallas/Ft. Worth area," said Nuncio. "My clients are everything to me. I strive to provide superb service to all of my clients. The fact that this is the sixth year I’ve been awarded this honor is overwhelming."

Nuncio was recognized by Texas Monthly Magazine for being at the forefront of today’s ever-changing real estate market, utilizing current technology to maximize his clients’ home buying or selling experience. "I pride myself on providing my clients with the highest level of personalized service and enjoy sharing my extensive market knowledge to assist them in finding the home that best fits their needs and desires," added Nuncio.

Nuncio, who is renowned for his high level of integrity, commitment to service excellence and his ability to produce results for his clients, has also been named by Goldline Research as one of the Top Most Dependable Real Estate Professionals in Texas and, since 2008, D Magazine, a Dallas local magazine, has named Nuncio as one of Dallas’ Best Real Estate Agents and/or a Top Producing Real Estate Agents.

"Tony did an amazing job. Before Tony, our house sat on the market for three months without a single offer. When Tony took over, he got us multiple showings a week, and a contract very quickly. He was in contact with us frequently and would let us know what was going on. We will use Tony again because the experience was great," stated clients William and Jennifer S.

Nuncio has a Bachelor’s Degree in Business Studies and a Master’s Degree in Management, both obtained from Dallas Baptist University. Prior to becoming a Realtor, he spent 30 years in various management positions in the telecommunications and restaurant industries. In his spare time, Nuncio loves to travel, supports the local arts, exploring local restaurants, and most of all, spending time with his family and friends.

About Tony Nuncio, The Nuncio Realty Group
Tony Nuncio has been a licensed real estate agent since 2003. Although his business spans the entire Dallas/Ft. Worth Metroplex, Tony has expert knowledge of the East Dallas/Lakewood, Lake Highlands and Oak Cliff areas. The Nuncio Realty Group can help you sell your home and/or help you buy the home of your dreams. For more information, please call (214) 395-0669, or visit http://www.thenunciorealtygroup.com. The Nuncio Realty Group is located at Dallas City Center Realtors, 3100 Monticello Avenue, Suite 200, Dallas, TX, 75205.

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SOURCE The Nuncio Realty Group

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