"Lot development activity has lagged new home starts in Dallas-Fort Worth since inventory hit a peak of over 90,000 lots in March 2008," David Brown, regional director of Metrostudy's Dallas office, in a written statement.
"The most active submarkets in Dallas-Fort Worth that account for 75 percent of the new home demand only have a 14.6 month supply, well below the 20 to 24-months considered to be equilibrium," he added.
Realtors say they have seen the demand for housing in the region spike as more and more companies expand and relocateinto Dallas-Fort Worth. The need for new digs has home buyers getting into bidding wars for homes in well-located neighborhoods and Realtors trying to beat out multiple bids for certain homes.
With the tight lot supply and strong demand in certain submarkets of Dallas-Fort Worth, it has builders selling their homes for much higher prices.
In Dallas-Fort Worth, the media price of a new home rose 24 percent over the past three years to $269,400 in 2014, according to the Metrostudy research. Only 25 percent of new home closings in the second quarter of the year were under $200,000, which is a 40 percent increase since 2011.