Many investors wonder if Dallas, Texas is a good place to buy rental property. This is not an easy question to answer because the best place to invest varies based on each person’s wants and goals.
Located in the center of Texas, Dallas is a big city. It’s a vibrant, cultural and economic center. Those interested in investing in Dallas, Texas rental housing communities pay close attention to what’s going on in the city.
Investing in Dallas real estate is a smart choice, especially for experienced rental property investors. This is because Dallas is seeing an increase in domestic and international relocation. Dallas is becoming a popular place to live, especially for young people, which has led to rising home values. Additionally, Dallas has a favorable business environment and low taxes.
Let’s look at some key factors to determine if the Dallas rental market is right for your needs.
Economic factors
Dallas’ economy plays a key role not only in Texas but in the entire country, and is known for creating many job opportunities and attracting large corporations.
Many Fortune 500 companies call the Dallas-Fort Worth area home, and the area’s business-friendly atmosphere has led to a thriving job market with a growing number of industries. When it comes to unemployment rates, Dallas is well below the national average.
Because Dallas is a great place to do business, there are plenty of jobs available, which draws more people to the city, resulting in a higher demand for housing.
Population growth
Population and demographics play a big role in shaping the Dallas real estate market, and the area is constantly changing as more people move in and out.
Dallas’ population is expected to reach 8.29 million by the end of 2024. This indicates that more and more people are attracted to the city and are choosing Dallas as their permanent residence.
People from different parts of the country are moving to Dallas because of attractive job opportunities, a strong economy, and an affordable cost of living. Millennials are a big part of this trend, shaping the city’s growth and changing what people are looking for in a home and neighborhood.
Living conditions
Living in Dallas has several advantages, especially in terms of education, healthcare, and cost of living. Families with children and professionals are attracted to Dallas because of its excellent schools that offer students excellent educational opportunities.
Apart from that, Dallas boasts of top-notch medical facilities to ensure its residents receive quality medical care whenever they need it.
Even though Dallas is a big city, the cost of living is relatively affordable compared to other big cities, allowing people to enjoy a comfortable lifestyle without putting a strain on their finances. These are all good reasons that make Dallas an attractive option for real estate investors.
Housing Demand and Supply
Dallas is experiencing a surge in housing demand due to population and economic growth. This demand is reflected in rising average sales prices, making the area attractive to investors.
Sales activity reflects a brisk pace of homebuying, with Dallas’ median home price recording a strong increase over the past year.
Meanwhile, housing supply is showing how the market will respond to this demand. In Dallas, new development projects and listings are addressing supply constraints. But Dallas’ housing supply situation makes it clear that the market is struggling to keep up, with recent data showing that inventory is growing faster than it can meet strong demand.
Real estate market trends
The Dallas real estate market is showing encouraging trends: As of February 2024, the median home price is $439,500, showing a 2.3% increase over the previous year, with most homes selling just below the asking price.
Additionally, homes are staying on the market for less than 33 days, indicating a healthy turnover rate.
Although the number of properties available for sale is increasing, inventory remains low. Low supply amid high demand creates lucrative opportunities for investing in Dallas rental properties.
Overall, Dallas is a vibrant and promising rental market for investors. With a booming economy, steadily growing population, and growing demand for housing, the city offers great opportunities for investors. If you’ve been considering investing in Dallas rental properties, now is the time.
