North Texas: Leading America’s Housing Boom but Facing a Middle Market Gap

As much of the U.S. slows down in housing construction, North Texas stands out as a national leader in growth. Cities across the Dallas-Fort Worth Metroplex are expanding their housing stock at record-breaking rates, bolstered by rapid population increases and strong economic performance. But while single-family homes dominate this growth, a critical segment – middle housing – is being left behind, creating affordability challenges in one of the nation’s most competitive real estate markets.

A Boom Unlike Any Other

If there’s one word to describe North Texas housing, it’s momentum. According to StorageCafe, four cities in the Dallas-Fort Worth Metroplex – including Frisco, McKinney, and Allen – are among the 15 fastest-growing housing markets in the country. This level of development sets the region apart as a national powerhouse in residential construction, reflecting Texas’ broader position as a leader in housing expansion.

Between 2005 and 2023, housing inventory across the U.S. grew by 16.7%. While that figure might sound impressive, it pales in comparison to the numbers coming out of North Texas. Frisco, for instance, has tripled its housing stock over the same period, reaching an impressive 85,000 units in 2023. This makes Frisco the top-performing city in the country for both single-family and multifamily housing growth.

What’s fueling this explosive growth? A combination of factors: steady job creation, a favorable business climate, and an influx of new residents drawn to the region’s economic opportunities and high quality of life. Companies relocating to Texas are bolstering the need for housing, while families and young professionals see cities like Frisco and McKinney as attractive alternatives to pricier markets elsewhere.

Economic Ripple Effects: More Than Just Housing

The boom in housing isn’t just reshaping neighborhoods – it’s driving growth in other sectors, too. In Frisco, for example, the self-storage market is thriving alongside residential development. With over 1.7 million square feet of storage space as of 2023 – a number that has more than doubled in two decades – the sector is responding to the practical needs of a growing population.

Self-storage is becoming a necessity for families transitioning between homes, professionals relocating to the area, and even small businesses in need of additional space. At an average price of $142 per month, storage facilities are capitalizing on the city’s rising density and the shift toward multifamily living, which often comes with less built-in storage.

This pattern extends beyond Frisco. Throughout the Dallas-Fort Worth Metroplex, the ripple effects of the housing boom are being felt across industries, from construction and retail to education and transportation. As populations grow, so too does the need for schools, roads, and public services – creating a feedback loop of demand and development.

The “Missing Middle” Problem

Despite these gains, there’s one critical area where North Texas struggles: middle housing. While single-family homes and large multifamily developments dominate the landscape, middle housing – duplexes, triplexes, and townhomes – remains in short supply. Nationwide, middle housing grew by just 11% between 2005 and 2023, and in North Texas, the picture is much the same.

This shortfall has significant implications. Middle housing is considered vital for addressing affordability and bridging the gap between renting and homeownership. It provides options for young families, retirees looking to downsize, and workers in critical industries like education and healthcare – people who are often priced out of the single-family market.

In high-growth cities like Frisco, where home prices have surged by 227% since 2005, middle housing accounts for less than 20% of the overall inventory. McKinney and Allen are two rare exceptions, with both cities seeing middle housing inventory increase by over 180% during the same period. Yet even here, demand far outstrips supply.

Why the Gap Exists – And How to Fix It

The shortage of middle housing isn’t just a North Texas issue – it’s a nationwide challenge. But in regions like the Dallas-Fort Worth Metroplex, where rapid growth has pushed home prices to new heights, the consequences are particularly acute. The root of the problem lies in a combination of factors, including zoning restrictions, development priorities, and rising land costs.

“Filling the missing middle requires more than just building units,” explains Doug Ressler, business intelligence manager at Yardi Matrix. “It means rethinking how cities grow. Zoning reforms, financial incentives for developers, and creative solutions like converting unused office spaces into residential units are all part of the answer.”

These strategies aren’t just theoretical. Cities across the country are experimenting with innovative approaches to address the middle housing gap. In California, for example, statewide reforms have made it easier to build accessory dwelling units (ADUs) on single-family lots. Meanwhile, places like Minneapolis have eliminated single-family zoning altogether, paving the way for more diverse housing types.

For North Texas, the challenge will be balancing its rapid growth with thoughtful planning that prioritizes inclusivity and affordability. Without action, the region risks pricing out the very people who are driving its economic success.

The Road Ahead for North Texas

North Texas has established itself as a national leader in housing growth, with cities like Frisco and McKinney setting the pace for development. But with great growth comes great responsibility. The region’s reliance on single-family homes has left a critical gap in middle housing, one that threatens to undermine its affordability and long-term sustainability.

By embracing innovative policies, fostering public-private partnerships, and investing in more diverse housing options, North Texas can continue to grow without leaving its middle market behind. In doing so, it has the opportunity to set a national standard for how high-growth regions can thrive in a way that works for everyone.