If zoning applications, project approvals, and groundbreakings are any indication, we’re officially living in a post-pandemic construction market.
Realtors gathered Thursday for a Dallas Builders Association luncheon, at which the hot topic was the city’s lack of housing inventory — despite an ever-increasing demand.
“Demand for housing in the Dallas area continues to be strong even in the wake of unprecedented supply chain challenges and an ongoing labor shortage,” Dallas BA officials announced in the latest industry newsletter. “A rapid rise in mortgage interest rates in the second half of 2022 priced more than 18 million American households out of the opportunity of homeownership … Despite these challenges, housing demand in D-FW continues to be fueled by favorable demographics and the nation’s strongest job market.”
Since 2019, more than 321,000 jobs have been added in North Texas, according to the Dallas Regional Chamber of Commerce.
“With more than 600,000 more people expected to call D-FW home over the next five years, demand for housing looks strong, especially if labor and material costs remain stable and interest rates decrease even slightly, which is expected in the second half of 2023,” the Dallas BA newsletter states.
Here are a few projects in the pipeline.
Preston Center Apartments
Developer Cawley Partners announced last month plans to build two high-rise apartment buildings in the Preston Center district on Northwest Highway.
The site — which currently houses two-story condos owned by Royal Orleans and Diplomat Condominiums — would be used for 225 units in a 16-story building and a nine-story building, pending a rezoning.
Dallas-based GFF Architects is designing the project to include below-ground parking.
The site is surrounded by multi-family development, including The Athena and Preston Tower. Houston developer Hanover Co. is building a 213-unit rental high-rise next door.
Other area projects include a two-tower housing complex south of Northwest Highway on Westchester Drive in the Preston Center Pavilion shopping center. The mixed-use project would contain retail, office space, and 180 housing units.
Developer Lincoln Property also is planning two high-rises south of Preston Center on Douglas Avenue. A Preston Center property on the south side of Luther Lane was recently rezoned for a hotel-condo tower and a high-rise apartment building.
Another Public Facility Corporation Project
The Dallas City Council last week voted to allow its Public Facility Corporation to acquire, develop, and own the Singleton Highline, a proposed 176-unit housing development at 2901 Borger St.
Houston-based Urban Genesis is the developer. The company’s portfolio includes several projects in Dallas and Fort Worth.
PFC projects offer a 75-year tax abatement for the developer, a point of contention among public officials and neighbors. The city receives a one-time payment upfront, along with annual lease payments. Advocates say the projects offer much-needed housing that wouldn’t otherwise be built, and would cost taxpayers substantially more if subsidized through bond funds or general funds.
The funding structure also incentivizes developers to build housing with an affordable component, city officials have said.
District 12 Councilwoman Cara Mendelsohn pulled the Singleton Highline item from the Feb. 8 council consent agenda and requested a record vote. She cast the lone dissenting vote against the project but had no additional comments.
Mendelsohn has opposed PFC projects in the past, arguing that she can’t support taking something off the tax rolls for 75 years.
“This is not an equity issue,” she said when the council approved four such projects in December. “This is about fiscal responsibility and how we fund affordable housing. We have to ensure our city is strong for the long term. If we continue to give tax abatements and continue to take items off our tax roll, we can’t provide the services that the residents need. I think we all know where we stand. I’m not going to vote for them. I reject the notion that it’s about equity when it’s actually about funding the city.”
Deputy Mayor Pro Tem Omar Narvaez spoke in favor of the project, saying he was proud to add workforce housing to District 6.
“We’re still trying to put more affordable housing into the City of Dallas,” he said. “We’re still trying to put people over dollars. We are making sure that the residents in this great city have a place to stay, a place to live, that they don’t have to be forced out of their communities.”
