š£ Donāt Put All Your Eggs in One Basket: What Slower New Construction Means for DFW Real Estate
Spring has sprung in Dallas-Fort Worth, and while youāre hiding Easter eggs and planning weekend brunch, local homebuilders are hitting the brakes a bit. New construction starts are down over 10% compared to last year, and thereās a lot happening behind the scenes that could shape the market, especially if you're buying or selling a home in DFW. Letās break it down in plain English.
šļø Why Are Builders Slowing Down?
Homebuilders in North Texas kicked off 2025 at a slower pace. With mortgage rates staying above 6.5% and job growth not quite keeping up, builders have been more cautious about starting new projects (homes and communities). Add in a surplus of unsold homes, and itās no wonder many are focused on clearing out inventory before going full steam ahead.
š¦ Inventoryās Up, But Not Forever
Right now, DFW has over 11,000 finished vacant homes, a bit more than usual. Thatās great news for buyers looking for move-in-ready options, especially if you're hoping to skip the wait and snag a deal. Builders are sweetening the pot with incentives and price adjustments, but no one knows how long that window of opportunity will stay open.
š Tariffs Are the Wild Card
Hereās where things get spicy: the federal government just raised tariffs on Chinese imports to 145%, and while some of it is paused for now, it has builders and suppliers on edge. Materials like tile, lighting, blinds, and even HVAC parts could get more expensive fast. That might not hit builders immediately, but itās definitely looming.
š° What This Means for Buyers
If youāre in the market to buy a new construction home, especially in places like Cedar Hill, Frisco, Mansfield, or Midlothian, you may want to move sooner rather than later. Tariffs could lead to higher prices down the line, and with builders offering rate buy-downs and discounts today, waiting might cost you more tomorrow.
Plus, an oversupply of labor (hello, eager painters and bricklayers) means construction timelines are more manageable right now. Thatās not always the case!
š And What About Sellers?
For sellers, especially those with move-in-ready homes in great condition, nowās your moment to shine. With fewer new builds coming online and some buyers unsure about where prices are heading, resale homes in established neighborhoods could become even more attractive. Highlight those features (no construction noise, mature trees, updated finishes, etc.) and price strategically.
šø Final Thoughts: Keep It Moving, DFW
The Dallas-Fort Worth market is still one of the hottest in the country, even with this temporary dip in construction. Whether you're in Duncanville or Denton, Rowlett or Red Oak, the smart move this Easter is staying informed and ready to act.
So go ahead! Enjoy that egg hunt, but keep an eye on the market. Because in DFW, opportunity doesnāt stay hidden for long.