A DFW Economy “State of the Union”
We recently attended a breakfast presentation by Steve Brown of the Dallas Morning News. The event was hosted by Chicago Title in their Routh Street offices. The topic was the status of the DFW Economy.
Steve Brown has been the Real Estate Editor for the Dallas Morning News since 1980. He primarily covers Real Estate, Construction, and the Economy. He is also a past president of the National Association of Real Estate Editors. Needless to say, Steve has witnessed many real estate cycles. He stated during his presentation that in all of those years, he has never seen a growth cycle like the one Dallas is currently experiencing.
According to Brown, this current state of growth isn’t finished yet. He believes it still has room to grow. The real estate market is still very active. Some reasons for this are:
- Developers in the DFW area have not overbuilt as we have in previous up-cycles
- 127,000 new jobs last year
- Interest rates remain low
The growth in real estate development is strong across the board. All sectors are doing well including industrial, office, apartments and to a slightly lesser extent, retail.
The apartment sector has experienced amazing growth and in the DFW area, they are filling up. If we look at the younger sector, first-time homebuyers were purchasing their homes. Today’s market has flipped to the point where this age group is now choosing to rent.
What Is Coming?
So, where are we headed from here? According to this slide from Steve’s presentation, about 19% of experts predict a recession beginning in the third quarter of 2020.
Kurz Group has a wealth of experience in dealing with economic cycles and how that impacts your property values. We would love to share with you how we can help you achieve a fair value for your commercial properties. Click this link to hear from clients we have helped.