Median Price For New Home Reaches New Heights In Frisco
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FRISCO (CBS11) - Prices are rising seemingly as fast as the demand for newly built homes in Frisco.
Ted Wilson's company Residential Strategies, Inc. tracks the housing market in North Texas.
Wilson said the median price of a new home in Frisco has now topped $500,000 for the first time.
In 2010, it was $285,000, he said.
"Frisco is one of the most sought-after suburbs in the Dallas-Fort Worth area," said Wilson. "We're running out of land in this part of the world. So land prices have climbed dramatically and construction prices and labor have also increased dramatically."
Homes in Phillips Creek Ranch in southwest Frisco start in the mid to upper 400s, and just to the east along Stonebrook Parkway, prices for a new community going up range from $500,000 to $1.2 million.
That's higher than the price-point Todd Flashnick and his family were looking for when they moved from DeSoto in 2014.
They spent four months trying to find a house in Frisco.
They wanted their three sons to attend school in the Frisco ISD.
This neighborhood is the one we found fit our price point and we were still able to send our kids to Frisco ISD," said Flashnick.
But while their neighborhood is named Frisco Hills, it's actually in Little Elm.
"We found the same base model was about $30,000 to $40,000 cheaper here in Little Elm than it was in Frisco," said Flashnick.
In Frisco Hills, houses with nearly 3,200 square feet start around $370,000.
A similar-sized home in Phillips Creek Ranch, an upscale community that includes large lots and many amenities, can start at more than $630,000 depending on the builder.
The city's Mayor, Maher Maso, said the city can't verify the report from Residential Strategies, but acknowledges the rising housing prices. But he said, "We're not seeing an impact or a slowdown."
Statistics support that.
City records show new residential permits have remained steady for several years.
In 2014, homebuilders took out 2,136 permits for single-family homes.
Last year, the city issued 2,224 permits, and so far this year, there have been 2,035 residential permits.
Aside from rising costs, and the desire to be in Frisco schools, large corporate offices are being built in nearby Plano.
Mayor Maso said, "Companies moving here, jobs being created here. We focus on a million times in Frisco on those high-paying jobs."
He said the work force can support the new homes.
As for Todd Flashnick, he's watched his neighborhood grow. "It's incredibly hot out here. Houses don't stay for sale that long."
To try to lower development costs, Maso said the city has approved what's called the alternative subdivision ordinance. "It's allowed some flexibility for the developer to have a little more density and more open space, and that has brought some of the costs down."
Wilson said he's seen similar developments in parts of neighboring McKinney as well.
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