From 2010-2020 the Dallas-Fort Worth metro area added 438,000 new housing units, increasing the housing stock by 18%. Dallas’s growth in new housing ranks No. 9 fastest among the nation’s 100 largest metros, Zillow’s stats show.
Over the same period, Dallas added 802,000 new jobs, an increase of 29%. A healthy housing market should add a new housing unit for every 1-2 new jobs as the local economy grows, according to the Zillow report and industry rule of thumb
.In Dallas-Fort Worth, 1.8 jobs have been added for every new housing unit, indicating that the area is building enough new housing to keep pace with demand, according to Zillow, although many realtors, homebuilders, and would-be buyers argue that’s not the case, at least right now.
Many American communities would like to have this problem: more residents and more jobs. Growth is good. Yet, growth in one area that outpaces the ability for other areas to keep up could become a problem.
In this case, the issue is housing. A flood of new workers could lead to higher demand for housing, driving up prices and increasing competition. In the long run, this could be discouraging both to new workers as well as long-term residents who find themselves in a different housing market.
I could imagine other issues in the Dallas area and elsewhere where growth happens. Take schools. This often comes up in booming suburbs where new residences are plentiful. This puts a strain on local schools and construction has to take place rather quickly to avoid having a lot of students in temporary settings. But, at some point, population growth will slow down and then there might be too much education infrastructure and costs that are difficult for the community to sustain.
Another example could be traffic and congestion. Adding all these jobs and housing units means many more people have to travel between them. Can the current roads and mass transit (roads in the case of most American metropolitan areas) handle all of this? New lanes can be added but putting in additional roads or highways is expensive and time-consuming. And studies show that adding road capacity just leads to more driving and more traffic.
The Dallas area might be fine in the long-run with roughly 1.8 new jobs per new residence but it will take some time to catch up with and settle in to the growth.