Why Investors Love the Real Estate Market in Dallas

Dallas is expected to be the most popular of the three metro areas in Texas when it comes to home sales. The main reasons behind the demand for rental property and increase in real estate are higher population growth, millennials purchasing their own property, and a booming economy. 

Investors love the real estate market in Dallas, and it is evident why. There is something here for everyone; families prefer to settle here in the quaint suburbs, and millennials love the job market and big-city attractions, while the older generation and retirees love the quality of life and warm climate. 

Looking closely at why North Texas is so popular, we noticed several reasons why it is a prime location for real estate investment:

Growing Population 

As people are moving to Dallas, the population continues to grow. According to the Dallas Business Journal, the population grew by 2% in the last year, which is more than any other state within the US. 

Being the third-largest city in Texas and the fourth-largest metropolitan in the country, more than 1.3 million people reside in the city, while 7.5 million people reside in the metropolitan area of Dallas. Dallas Fort-Worth is expected to see a population surge of approximately 18% by 2029. The biggest chunk of the population is aged 20-49, whose decent household income makes it easier for them to invest in real estate. 

Job Market 

Due to COVID-19, it has been a struggle for most states to have a flourishing job market, but Dallas is still a job hub. North Texas has become one of the fastest-growing areas of the country because of the new jobs, which has surged demand for land. 

According to the Federal Reserve Bank of St. Louis, the GDP of the Dallas-Fort Worth-Arlington, TX MSA is close to $523.9 billion and has only increased over the last ten years by almost 62%. The employment rate has also increased while median household income has increased by 3%. 

The top 5 employers in Dallas are Lockheed Martin, Baylor Scott & White Health, Texas Health Resources, University of Texas Southwestern Medical Center, and Medical City Healthcare. 

Real Estate Market 

According to D Magazine, the real estate market in Dallas is one of the strangest ones. Houses have been selling quite quickly, and in the last year, most of the houses for sale in Dallas have received several offers. People are coming to Dallas to settle down because of the high cost of living in other areas like New York and San Francisco. 

Real estate values in Dallas have increased in the past year. According to the MetroTex Association of Realtors, a single-family home in Dallas is estimated to be around $302,000 as of May 2021. 

The average time a house stays in the market in Dallas is 32 days which is significantly faster than a year ago. The most affordable neighborhood in Dallas is Cedar Crest. 

Rental Market 

Home prices continue to rise in Dallas, attracting the most investors in North Texas. The mortgage rates are low, and demand is high, which makes it attractive to investors. Simultaneously, the increasing population, booming job market, and high property prices are major reasons for the demand in the rental market of Dallas. Based on research on Zumper, the median rent in Dallas is $2,200. For renters, the most affordable areas are Five Mile Creek,

Preston North and Cockrel Hill, with an average rent of $1,000, while the most expensive ones are Lakewood, Uptown, and Glencoe Park, going as high as $4,800. 

The real estate prices in Dallas are shockingly affordable, with a thriving job market and low-cost living guaranteeing a great quality of life. With no state income or inheritance tax, it’s clearly visible why people prefer to move to Dallas and settle down.