Compact homes offer affordable path for North Texas buyers

With home affordability a growing challenge for many North Texans, some buyers are turning to smaller, more compact homes. They're being built inside master‑planned communities, offering homeownership at a fraction of the cost.

For years, owning a home has been a top priority for DeJay Price.

"I wanted to have a space that I could make my own," she said.

But with the average home price in North Texas hovering in the mid‑to‑high $300,000 range, her options were limited. She eventually discovered compact homes in a master‑planned community in Princeton.

Growth fueled by affordability

Princeton is one of the fastest‑growing cities in North Texas, driven in part by lower costs. At just over 650 square feet, Price's home includes one bedroom, two baths, and a loft – all for around $160,000.

"You can't beat the value, especially since I have access to the city, but I don't have to pay the price," she said.

Her neighbor, Charles Graves‑Harter, feels the same way.

"We wanted something we knew we could afford in retirement... as we're heading there and we didn't see anything similar," he said. "All of the other houses were out of our price range."

Amenities still matter

Homeowners say one of the biggest appeals of a community like this is the amenities. They still get access to playgrounds, basketball courts, and community pools.

"For me, it's perfect in terms of the atmosphere and the amenities and the home itself," Price said.

Communities like this may soon become more common thanks to Texas Senate Bill 15, which took effect last September.

In the past, some cities required 5,000‑ to 7,500‑square‑foot lots. Now, large cities can't require lots bigger than about 3,000 square feet in certain new subdivisions.

"So that is going to open up a lot more communities like this," North Texas Market Insider realtor Bobby Franklin said.

A path into the market

He believes the change will help buyers struggling to get into the market.

"Affordability is such a big problem right now," he said. "I'm actually working with a couple out of Waxahachie now; they're in their early 20s. Like 21 and 22. They can barely afford a $275,000 home. If they can get into something like this, for $167,000, that would be a game changer for them."

"Especially in this area, where the market is right now... it's perfect for me," Price said.

She said her compact home is just the beginning – a chance to build equity now and potentially upgrade later.