Are you looking to venture into the world of real estate investing? Here are just a few reasons you should look to Dallas first:
- Lots of job growth – In the last year, DFW has added more than 100,000 jobs to the local economy, a near 4 percent increase from July 2014 to July 2015; the national average job growth is just 2.1 percent. If this trend continues over the next few years, this will create an even higher demand for local real estate, particularly in residential communities.
- Home prices are up – According to a recent piece in The Dallas Morning News, DFW home prices rose sharply in 2015, particularly in areas like Oak Cliff and Fairview. While this does mean you may pay a bit more up front, it also means you can likely sell for a higher price, especially if you make some thoughtful upgrades to the property first.
- Supply is low and demand is high – In 30 of the 45 residential districts tracked by The Dallas Morning News, there is less than a two-month supply of houses listed with real estate agents—a whopping one-third less than what is typical. In areas like Richardson, The Colony, Hurst and Bedford, there’s less than a one month’s supply. This makes demand extremely high, with buyers scrambling to find properties and making much more aggressive offers at the outset.
- Rents are up – According to Zillow, rent rates in DFW have risen 5.5 percent since 2014, bringing the average monthly rent to a hefty $1,465. That means renters are spending nearly 30 percent of their income on rent alone. These rising rents, coupled with low vacancy rates, make it the ideal investment market. As more and more renters feel the need to move, investors can capitalize on this trend and sell buyers their first home.
- The population is growing – Recent U.S. Census data reveals that Dallas is one of the fastest-growing cities in the country. Between 2013 and 2014, the area saw a population increase of more than 20,000 people, or 1.6 percent. Venture out west to Fort Worth, and you’ll see even more growth; in the same time period, the city’s population rose by 2.3 percent, jumping from 794,000 to 812,000 in just one year.