Highland Park and University Park are two affluent neighborhoods in Dallas, Texas, known for their excellent schools, charming streets, and proximity to the city center. These neighborhoods are also home to a thriving residential real estate market, a market that stands to benefit from current demographic trends in the area.
Cost of Land
The cost of land in Highland Park and University Park is high, reflecting the desirability of these neighborhoods. Vacant land doesn't not typically exist in either neighborhood, however according to Zillow, the median price per acre of land in Highland Park is ~$8 million, while the median price per acre in University Park is ~$5 million.
New Construction Costs
The cost of new construction in Highland Park and University Park is also high. According to the National Association of Home Builders, the average cost per square foot to build a new single-family home in the Dallas metropolitan area is $210 per foot under roof. However, the cost of new construction in Highland Park and University Park is materially higher, given the higher cost of land and the higher demand for homes in these neighborhoods.
New Construction Sales
New construction homes in Highland Park and University Park are selling for a premium. According to MLS data, the median sales price for a new construction home in Highland Park in the past three months was $4.5 million, while the median sales price for a new construction home in University Park was $4 million.
Renovated Home Sales
Renovated homes in Highland Park and University Park are also selling for a premium. According to MLS data, the median sales price for a renovated home in Highland Park in the past three months was $3.8 million, while the median sales price for a renovated home in University Park was $3.5 million.
Homes in Need of Work Sales
Homes in need of work in Highland Park and University Park are still selling for a high price, but not as high as new construction or renovated homes. According to MLS data, the median sales price for a home in need of work in Highland Park in the past three months was $2.7 million, while the median sales price for a home in need of work in University Park was $2.5 million.
Cost per Square Foot
The cost per square foot of homes in Highland Park and University Park varies depending on the condition of the home, the location, and the square footage of the home. However, in general, homes in Highland Park and University Park sell for more per square foot than homes in other parts of the Dallas metropolitan area.
For example, the median sales price per square foot for a new construction home in Highland Park in the past three months was $900, while the median sales price per square foot for a new construction home in University Park was $875. The median sales price per square foot for a renovated home in Highland Park in the past three months was $800, while the median sales price per square foot for a renovated home in University Park was $775. The median sales price per square foot for a home in need of work in Highland Park in the past three months was $675, while the median sales price per square foot for a home in need of work in University Park was $650.
Conclusion
The residential real estate market in Highland Park and University Park is strong and unlikely to weaken any time soon. Homes in these neighborhoods are selling for a premium, both in terms of absolute cost and cost per square foot. This is due to the desirability of these neighborhoods, the excellent schools, and the proximity to the city center. Investments that take advantage of this demographic should be strongly considered in this current market environment.
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