Frisco Texas Residential

According to the North Central Texas Council of Governments, Little Elm Texas is leading the pack in Denton County for towns with a population of 5,000 or more residents (source: http://www.nctcog.org/ris/population/2005popestimates.pdf) . Talk to the sales consultants at any of the new construction model homes and they'll convince you that it is much better to live in Little Elm instead of Frisco. Undeniably, the explosive growth experienced in Frisco has spilled over to it's Little Elm neighbor. In fact, Little Elm is reporting more than 21% increase for 2004-2005. So what's the speculation? Is Little Elm going to surpass in popularity and growth? How do they compare? What are the advantages and disadvantages of both?

While no one has a crystal ball (at least not a legitimate one) and we can only speak in terms of speculation, there are noteable differences in these two neighboring cities. These differences center on the key features of location, amenities, housing market, schools, and reputation.

Location

Location may be the easiest to compare since it is one of the few constants in this equation. After all, land is fixed and barring severe natural disasters, it's not moving anytime soon. Frisco is situated rather nicely. Just north of heavily populated areas like Plano, Addison, Uptown, and Downtown, it's easily accessible by either Dallas North Tollway, Hwy 121, and numerous business streets. With compelling attractions like Stonebriar Mall, IKEA, MLS Soccer (The new Pizza Hut Stadium), Frisco Rough Riders, the Tornados hockey team, and other impressive venues and destinations, it is a great advantage that Frisco is centrally located.

Little Elm's location should not be discounted. After all, it has similar advantages since it is adjacent to Frisco. It's accessibility will only be improving as they expand Eldorado Parkway, build the Toll-Bridge across the lake to connect with I-35, and widen HWY 423. Soon, Little Elm will be able to draw traffic from Carrollton, Lewisville, and Dallas via the Interstate.

Amenities

The amenities of each city also serve as comparable distinctions. Frisco has done a masterful job of bringing in big commercial businesses. The city planners know what makes north Texans tick... shopping and sports. With all of the growth plans, Frisco is slated to be a shopping mecca. Especially along the Dallas Tollway. For years, the DNT has been called the "golden corridor", and for good reason.

Little Elm, however, has one HUGE advantage over Frisco in this category... it is built on the borders of Lake Lewisville. In the unbearable dog-days of summer, Texans flock to the lake for boating, jet skiing, and, of course, drinking beer. However, with the expanding infrastructure of both areas Frisconians will have quick and easy access to the lake themselves. While not statistically proven, odds are most people would rather live closer to shopping. The lake is a great feature but not enough to cipher permanent residents from Frisco to Little Elm.

Housing Market

The housing market makes an interesting discussion when comparing Frisco and Little Elm. Historically, Little Elm is known for it's affordability. With the cost of living ever increasing, the price of gasoline out of control, many people are looking to save a money on their mortgage payments. Little Elm is one of the least expensive areas in the Dallas Metroplex. After all, where else can you go to get 4 bedrooms around 2000 square feet for UNDER $160,000? Little Elm is a great deal. Without question, it wins the price advantage. First time homebuyers, fixed income residents, investors, landlords, and single income families can easily find great prices and great neighborhoods in Little Elm.

Until 2006, Frisco has been less expensive than other popular cities like Plano. However, with such a high demand for homes in Frisco and an increase in building costs, housing values are rising. This is great news for people who have homes to sell. It is difficult to find any new homes under $250,000 in Frisco anymore. The sweet spot is now $300,000 - $500,000. People just love Frisco and the demand continues to prove it. So, Frisco wins the popularity award.

Accordin to NTREIS, the North Texas MLS database of homes used in the real estate industry, the year-to-date averages (January 2006 - August 2006) of Little Elm and Frisco to be quite different:

Average Sold Price
Little Elm - approx. $168,000 (out of 476 homes sold)
Frisco - approx. $284,000 (out of 1,704 homes sold)

(Source: North Texas Real Estate Information Systems)

If interest rates continue to rise, Little Elm could quickly become a true hotspot because too many people will get priced out of Frisco. Until then, however, Frisco is attracting families with much higher incomes and has the more favorable reputation among many North Texans. As Frisco homeowners are competing a little less with new construction builders, the appreciation values are better than many other areas in Dallas. I speculate that it will continue as the large subdivisions are built out and the infrastructure catches up with the population growth. Nevertheless, Little Elm will always draw those attracted to lower prices. With gas prices, rising interest rates, and it's proximity to Frisco, Little Elm is poised for significant growth.

Schools

Currently, Frisco holds the market on School reputations. The Texas Education Agency (http://www.tea.state.tx.us) publishes the test scores of each district. Viewing those reports will clearly outline that Frisco is, perhaps, a step ahead. However, Little Elm is drastically improving and working hard at attracting good teachers and improving their system, and they're doing a good job as well. If we fast-forward a few years, don't be suprised if Little Elm is as good as Frisco ISD.

Frisco School Ratings - August 2006
Little Elm School Ratings - August 2006

Summary

Frisco and Little Elm are both unique and fast growing cities. Each have key distinctions from other cities in the Metroplex. While Little Elm has good schools, affordable housing, and excellent recreation opportunities provided by Lake Lewisville, Frisco is still King and probably will be for quite sometime. The appreciating house values, amenities, schools, taxes, economics, and reputation of Frisco is just too much to entertain any realistic notion that Little Elm will surpass Frisco in popularity. Both of them are great areas to live and invest your lives. Just be smart about the home values as you consider a new residence in either place. Do not over pay, do not expect unrealistic appreciation, and don't buy based on emotions!

Author Information

Jeff Wimpy - Realtor ®

Jeff and his wife are residents of Little Elm, TX. Jeff is a licensed real estate agent with RE/MAX and The Gunder Group. Jeff and Tricia recently purchased a home in Frisco.

If you are wanting to buy or sell a home in Frisco, Little Elm or any other D/FW suburb, call Jeff at 214-773-0567. He will be able to give you a great snapshot of the real estate market that will help you understand housing values and the condition of the market today.