DALLAS — This story originally appeared in the Dallas Business Journal.
With North Texas continuing to get a steady stream of corporate relocations, and with inventory levels of housing at an all-time low, the Dallas Business Journal asked: Do corporate relocations affect home prices in Dallas-Fort Worth?
Here's what several local experts said:
“The impact can be significant. Even as small as a 50-person firm is competing for less inventory. Work at home is providing relief as folks are free to expand the radius of their home search outside a commuting zone. But with limited inventory, any increase in demand is going to have an effect. Toyota, if they tried to make that move today, their employees would have a hard time making that move. The supply is literally cut in half.”
— Mark Johnson, CEO of Frisco-based JP & Associates Realtors
“In normal times, pre-COVID, it would not have a huge effect. In terms of people moving here due to corporate relocation and companies wanting better business environments, we have more options on space and we are much less congested in comparison to some other larger cities. With COVID and other factors, we continue to have a shortage of inventory. Yes, we have been speaking of a shortage for quite some time, but now it is an even greater shortage. Supply and demand will help tick the price points upward until we balance out. This will not prevent companies from moving here and people accepting the opportunity.”
— Deb Borrell, director of Relocation and Business Development for Allie Beth Allman & Associates real estate brokerage.
“Not unless it's like thousands and thousands of people. What's affecting pricing right now is the overall domestic migration to Texas and to Dallas in particular. (Corporate relocations) is just a drop in the bucket in terms of compared to everyone moving to Texas in general.”
— Alex Vidal, regional vice president for Coldwell Banker in Dallas-Fort Worth
“If you are adding a bucket of new buyers to the area, that’s going to increase demand, and supply isn’t going to be impacted so that would have an effect on pricing. However, there is already so much demand, there’s probably not going to be that much of a difference in the grand scheme of things because there are already so many buyers out there. It’s a drop in the bucket, if you will, compared to the overall demand. I wouldn’t say that (corporate relos) in and of itself is having a big impact on pricing specifically. If the existing demand weren’t so strong I think it would have more of an impact.”
— Eric Fite, chief operating officer of DFW-based Century 21 Judge Fite Realty
"They all have to compete with the other buyers currently in our market because the inventory is so low. That’s the biggest factor right now. We have a shortage of ‘For Sale’ inventory. We have a lot of inventory on the ground. We just don’t have enough ‘For Sale’ inventory on the ground. I’m hopeful that we will see more people begin to feel comfortable (putting their homes on the market)."
— Harold Decena, vice president and relocation director for real estate services firm Ebby Halliday Cos.