What Is Trending In Dallas Real Estate Investing…
A revitalized local economy is a common thread among strong real estate markets across the country (three of the top five are in Texas, by the way). The job opportunities available in Dallas are bringing in millennials, entrepreneurs and businessmen. That spells good news for the local economy and that includes good news for those real estate investing!There are several factors that have developed over the first quarter of 2015 that place Dallas in good standing with real estate investors.
Apartment Demand is Ridiculously High
As one would expect with a growing rental market, apartment building is bigger in Dallas. In fact, Dallas has the fastest-growing apartment market in the country, with construction far outpacing that of single-family homes. More than 30,000 units are under construction in Dallas and over the past 12 months, a net 18,000 apartment units were leased — more than any other market in the nation.
Home Prices are Going Up
Despite the lack of new homeowners in the Dallas-Fort Worth market, home prices are still on the rise. As with Houston, inventory is tight while demand is on the rise while home builders haven’t caught up yet, combined with the quickly growing population. While some worry that Dallas real estate will become less attractive to those seeking opportunity, prices in Dallas, though at personal record highs, are still lower than those of comparable markets across the country. This high demand, low inventory market is expected to continue for some time.
Dallas Commercial Real Estate is on the Rise
Not only is there growth in the apartment sector, but commercial real estate in Dallas, to no surprise, is also thriving. With a booming local economy bringing in new business, it was bound to happen. Office and industrial spaces are in high demand and the number of mixed-use developments are on increasing in Dallas — one of the most successful being CityLine in Richardson.
It’s a Strong Market for Real Estate Investors
What does all of this add up to? Well, for real estate investors with theirs eyes on Dallas, it’s very, very good news. The odd dynamic of a vibrant and growing job sector in combination with falling home ownership in favor of renting means that real estate investors have a significant role to play in this real estate market. Rent prices and property values are expected to continue to climb as the year progresses.
While home prices are often too steep for would-be homeowners, it makes sense for investors to capitalize on the market’s comparable affordability, converting single-family properties to rental properties, which are in high demand.
“Texas continues to be a sure bet when it comes to real estate investing. Lower oil prices may slow some areas, but the diversified economy and pent up demand for real estate will help to mitigate the impact on rental markets,” noted David Hicks, HomeVestors co-president.