Dallas real estate tax exemption could boost real estate prices
The Dallas Real Estate Tax exemption could be a boon to Dallas realtors who have long complained about a lack of affordable housing in the city.
According to a new report, realtoring has been a particularly tough market for many local realtresses, who have had to battle with high property taxes in Dallas and in neighboring cities.
The report from the National Association of Realtors (NAR) and Real Estate Institute of America (REIA) shows that, by 2026, the number of Dallas-area realtours could grow by nearly 200 percent.
The growth would largely be driven by the city’s residential real estate market, which is expected to increase by 1.6 million square feet (746,000 square metres) in 2026.
The increase is expected at a time when demand for new homes is expected in the Dallas-Fort Worth metropolitan area to reach record levels of 1.7 million square metres (1.35 million square meters).
In the city, the report estimates that about half of the new realtores would be in the area around the historic downtown area.
The NAR said the report is a step in the right direction, but that more work is needed to address Dallas’s affordability problem.
In order to be successful in the tax code, Dallas realts need to develop a comprehensive, low-cost rental inventory, and that requires them to be able to offer housing in a variety of markets, said Reena Tandon, president of the NAR.
In a recent study, she said, Dallas-based realtory groups like REIA and NAR have “been doing a tremendous job” in helping people find affordable housing.
But, she added, “the real estate industry needs to do more to encourage people to live in their own neighborhoods”.
The NARP study also highlighted the growing number of renters in the state.
According to the latest data from the Dallas City Council, about 9 percent of the state’s population of 7.8 million is a renter, and this number is expected increase to 11 percent by 2027.
In 2026 alone, Dallas will be home to more than 4.6 percent of Texas’ renter population, up from 4.1 percent in 2020.
“Dallas is the epicenter of the real estate boom in Texas, and its affordability problem will continue to grow,” said Tandon.
“As a city, we need to work to get people into affordable housing, and we need more affordable housing and more rental housing, not less,” she said.
Dallas-area residents have complained for years about a long wait to find affordable apartments.
According the Dallas Morning News, more than one-third of all single-family home listings in Dallas are below market value, and nearly a third are under $300,000.
In the past few years, Dallas has seen an increase in the number and density of apartment complexes.
In 2016, there were about 2,700 apartment complexes in Dallas.
But the realtorial tax exemption is expected, said Tison, who noted that Dallas realtor associations have been pushing for a tax exemption for the city for decades.
She added that if the city was able to extend the tax exemption to the rest of Texas, Dallas would have about 1,800 rental apartments for each of its 7,000 apartment complexes, or roughly 20 percent of all rental apartments in the region.
Dallas has also seen an explosion of development in the surrounding area.
In addition to new developments, more people are moving into the city each year.
According in the 2017 Dallas City Budget, there are an estimated 3.6 billion square feet of housing under construction or under construction in the next decade, and another 8.2 billion square foot of housing in construction.