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Higher demands mean higher prices for housing in Frisco

North Texas is one of Texas’ fastest-growing regions; with major developments in the area thousands of people are considering to relocate in Frisco annually. These developments, however, are causing a hike in the cost of lands which leads to higher housing cost.

According to the data fro, North Texas Real Estate Information Systems, the current cost of a pre-existing home in Frisco costs $381,952 while it only costs $255,918 back in 2006. The huge influx of housing prices is a result of the increasing demand and growth that has hit the area.

A newly constructed home’s average cost in 2006 was $289,016 but it increased to $477,599 last year. As explained by brokers, this is a result of growth and development in the area. As the area is being built, developers will see it as an opportunity to drive land and development cost up.

The trend of rising home prices began three years ago in the Dallas-Forth Worth area. So far the prices rose by 30 percent already and will not slow down for the coming months. Frisco’s land and lot prices are at a record high due to homebuilders moving into the area. They would like to take advantage of the good market in the area, but not all deals are being pursued.

3,335 new homes were built in Frisco in 2006. This dropped by the hundreds in 2009, due to the economic downturn the area experienced last 2008. But construction began to recovery come 2010 and did not stop since then, despite some fluctuation. Last year closed with about 2,112 new homes built in Frisco.

 Despite these trends in Frisco, affordable housing is not an alternative for home builders in Frisco, although it might be the case in other cities like Celina. Frisco will not see any transition for the coming years.