A housing shortage is hitting Dallas hard, and the real estate market is tough – buyers face ever-escalating prices and frequent bidding wars when they do find homes. But finding or even building your own home is complicated by a lack of actual land to build on.

Ted Wilson, owner of Residential Strategies, said that there are several things driving the current real estate surge: some of those factors include more millennials looking for homes, mortgage rates hitting record lows and convincing more people that now is the time to buy, and more people moving to Texas for work.

“Since the first quarter 2019, housing starts in Dallas Fort Worth have increased by 50%, but the number of vacant lots hasn’t changed. So months’ supply has gone from a 24-month supply to a 16-month supply,” said Ted Wilson, founder of Residential Strategies, which provides market research to builders.

And even if you do find the land to build on, getting a permit takes time, and the rising costs of materials can add thousands to the cost of a home.

Builders struggle to get their supplies and costs for materials are surging too – Residential Strategies surveyed builders recently and found that costs are up nearly 18% from what they were in 2020 at this point. 

The market is hot enough that home sellers who still need to find a place could find leniency with their buyers, according to Nikki Barringer, a realtor with Dave Perry-Miller, who joined Good Day to discuss the DFW housing situation.

“One of the interesting things is that we’re still getting people who are willing to give 30, 60 days, so you have time to go out and find a home,” she said.

Texas has seen a ton of people move in over the past year – the U.S. Census Bureau notes that more than 370,000 individuals moved to Texas in 2020 than in 2019, the Houston Chronicle reported.