The Dallas Housing Market is cooling off and it is the right time for buyers to enter into the bidding wars. Investing in Dallas is always considered as a good decision by seasoned rental property investors. Cities like Dallas have seen residential exodus characteristics with both domestic and international immigration.
The Big D’s home prices have been skyrocketing with home owners and renters improving their desirability to the Dallas' urban neighborhoods full of Millennials. You should invest in Dallas investment properties because of its favorable business climate and Texas’ low taxes are pulling in innovative companies that strengthen the city's economic diversity.
New York may have been the city that never sleeps with several cultural attractions, fashion icons and trendsetting architectural designs but it’s been falling behind recently. Now Dallas has taken over as the hot destination for savvy and new real estate investors. Since 2010, about 100 firms have moved into DFW from other states, including Toyota North America from California and Topgolf from Illinois.
Why Should You Invest In Dallas Real Estate? |
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11 Reasons to Invest in The Dallas Real Estate Market
1. Booming Economy of Dallas
With the influx of new investors, the city has seen a much more diversified economic reach, making it the number one reason to invest in the Dallas Real Estate Market. Located in Texas and traditionally known for the oil business, the modern Metropolis has seen its economy grow stronger than before. This can be attributed to sectors like education, technology and communications that has made it impossible for investors with steady incomes to purchase residential properties.
Renters now have access to a range of property. From cheap apartments to luxurious condors, home owners have readily available markets in the real estate business. Innovation is global, so being connected to the rest of the world is more important than ever. Dallas-Fort Worth International Airport’s 210 nonstop destinations include 56 foreign cities.
2. Population Growth
Closely related with the 4% annual growing economy over the recent past, Dallas registered a significant population growth. The city that had its roots in the small-scale farming sector was boosted by the oiling business to become an urban cultural and business center.
The fast-uneven growth in the metro area as seen in Denton and Collin counties with new families have seen construction of new homes and new apartments. Rent growth is expected to moderate to around 4 percent over the next three years, but ongoing increases likely will compel renters to begin considering other options. The is the second reason to invest in Dallas real estate in 2019.
3. Abundance of Land in Dallas
Construction companies in Dallas have made profits with the never-ending contracts on public and private land constructions. Investing in Dallas real estate could be a smart move since it’s located on the second largest state with abundance of land. With the current expansion rates, no one seems to be selling off their investment properties.
4. Growth of Airbnb
Another top reason to invest in the Dallas housing market is the enormous growth housing startups like Airbnb. Air bed and breakfast is an online based market for renting properties to guests. Foreigners have been able to receive accommodations through the platform which takes a 3% commission on the bookings. The rest goes to the home owner.
The platform has registered remarkable growth in Dallas area – an indication that most people require fast accommodation services. Vacation rental giant is on track to be a $200 million-a-year force in Texas, with Dallas among the cities leading the charge. Booked Airbnb listings in Dallas grew by 34 percent last year, according to data analyzed by the Dallas Business Journal. This could be a green flag to invest in Dallas housing market.
5. Low Cost of Living In Dallas
A strong economy is reflected with its low cost of living and high salaries. Financial stability among the Dallas residents could mean increased borrowing rates at financial institution with better chances of loan repayments. Higher mortgages have been registered in Dallas since most residents qualify for them due to their next to perfect credit scores. Moreover, the low living costs in Dallas make it possible to save up and buy property with cash. Families are attracted by the area’s relatively low cost of living (including taxes) and job opportunities.
6. Employment Creation
The growing city of Dallas has been ranked as the 2nd in job growth with over 500,000 jobs created in the recent past. More jobs equal remarkable investment decisions to choose from after obtaining that pay cheque. Among them is the Dallas housing market that has been on a rising trend. The big Dallas has even bested known metropolis cities like New York and Washington to offer more job opportunities – a clear indicator that you should consider to invest in Dallas real estate in 2019.
7. High Rent to Home Price Ratio
The ratio of residential rental to home prices in Dallas housing market stands at 16:1 – the highest ranked in the nation. Moreover, selling prices of constructed commercial property like industrial, retail and offices are above the normal rates. This ratio gives a rough estimate of the foreseeable future with all factors constant, a property’s return value can take only 16 years. With high occupancy rates, investing in Dallas housing market in 2019 could be a major investment success in the years to come.
8. Dallas Has Low Crime Risks Neighborhoods
With the low costs of living in Dallas, it would be ambiguous for the city to register high crime levels. However, there are minor cases of petty theft, aggravated assaults and cases of vandalism in Dallas. A good investment should be just about risk free. Safer neighborhoods attract more single family residents which can be good to the real estate market. Some of the best places to buy rental property in Dallas where crime rates are very low are Cockrell Hill, Frisco, Lochwood, Munger, Bryan Place, Allen, Campbell Green, Coppell, North Dallas, Farmers Market District and University Park.
9. Technology and Innovation in Dallas
According to a recent census, the population of Dallas mainly comprises of Latinos and immigrants. A greater proportion of this population consists of college graduates seeking to establish themselves in the competitive world. Moreover, low number of people retiring means that the small single families are subject to grow larger with time. This in turn is a good sign for the growth of single family rental homes in the Dallas housing market.
The youth may provide creative new ideas into the real estate businesses and other start-ups. Dallas has already established itself as a startup hub and is considered as one of the most high-tech cities in the world. Dallas boasts of rapid growth in the number of venture capitalists and integration of technology into the city landscape.
10. Invest In Dallas | Get Government Incentives
The State of Texas has worked hard to develop and sustain a business-friendly operating environment. State and local government provides tax incentives, financing assistance and an array of services to help companies establish or expand in Texas. The economic development plan of the City of Dallas, Strategic Engagement, was approved by Dallas City Council in 2005, updated in 2013, and continues to be relevant today.
ACHIEVING THE VISION. Strategically engaged in economic development, where government works with the business community to overcome obstacles to growth and markets itself locally, nationally and globally. This makes for one more strong reason to invest in Dallas, Texas.
11. The Dallas Housing Market Forecast 2019
According to Dallas News, sales trajectories indicate that the prices will continue to rise. However, this won’t be the same as last year. On the other hand, land value is always appreciating making real estate one of the wisest investment choices in Dallas Housing Market. Dallas is among those US cities where renting is more reasonable than buying.
One of the many reasons Dallas has been growing over the years is because young people have moved there and continue to do so, and the preferred starting out with rental properties before buying their own home. The demand for rental units has increased 14% over the last year, so it’s the perfect opportunity to invest in the Dallas real estate.
Where To Invest in The Dallas Real Estate Market?
If you are looking to buy real estate in Dallas, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Here are some of the popular neighborhoods in Dallas for real estate investing.
1. Cockrell Hill, Dallas
Cockrell Hill is a city in Dallas County, Texas. Median Household income of $22,555, slightly lower than the national average. 48.4% lower education level on the increase.
Racially diverse so you can look to it if you need to invest in a property that appeals to people from all walks of life. Up and coming younger population. 50/50 split married, unmarried or with children.
Total households were $7,038 Tarrant County- has seen an increase in the building over the past few years and is expected to pull higher rental rates as increased growth of amenities is going strong.
Dallas Independent School District serves students in Cockrell Hill. All of the schools serving Cockrell Hill are in the City of Dallas.
| Median Home Value | $84,700 |
| National | $178,600 |
| Median Rent | $830 |
| National | $928 |
2. Frisco, Dallas
Frisco is a city in Collin and Denton counties in Texas. It is part of the Dallas-Fort Worth metroplex, and is approximately 25 miles (40 km) from both Dallas Love Field and Dallas/Fort Worth International Airport.
A large number of people move to Frisco, TX for its unparalleled school district, Frisco ISD. Frisco is a wonderful suburban town on the outskirts of Dallas that has been dramatically growing over the past few years.
Although there seem to be many new constructions sites all over town, things have been settling down recently. Home prices have saturated, the mall/other buildings have been in function for several years now, and we have very low crime rate.
According to niche.com, it is ranked #2 in best neighborhoods to live in Dallas-Fort Worth area.
| Median Home Value | $277,600 |
| National | $178,600 |
| Median Rent | $1,310 |
| National | $928 |
3. Lochwood, Dallas
Lochwood is a neighborhood in the east Dallas, TX area to the north and east of White Rock Lake and south of Lake Highlands.
According to niche.com, it is ranked #35 in best neighborhoods to live in Dallas-Fort Worth area. Employment consists of Walmart and fast food restaurants.
| Median Home Value | $237,100 |
| National | $178,600 |
| Median Rent | $954 |
| National | $928 |
4. Munger, Dallas
The Munger Place Historic District is a neighborhood and historic district in Old East Dallas, Texas (USA), generally lying between North Fitzhugh Avenue on the southwest, Gaston Avenue on the northwest, Henderson Avenue on the northeast, and Columbia Avenue on the southeast.
Munger Place is one of the most beautiful parts of Dallas, It has a large collection of Prairie-like homes recognized by the US National Register of Historic Places. But, what interest you as an investor is that 77% of the Households are renters, that means massive return on investments due to low vacancy rates.
| Median Home Value | $527,141 |
| National | $178,600 |
| Median Rent | $1,071 |
| National | $928 |
5. Bryan Place, Dallas
Bryan Place is a neighborhood in Old East Dallas, Texas (USA). It is east of the Arts District of downtown and the State Thomas neighborhood, north of Deep Ellum, south of Cityplace and west of Munger Place.
This part of the city is surrounded by skyscrapers, giving it a uniquely stylish look. This neighborhood actually has an Association that takes care of sanity and other issues related to the comfort of the safety of its residents.
The rental cost in Bryan Place is 90,3% higher than other parts of Texas and that means a lot of ROI if you own a house there.
| Median Home Value | $313,244 |
| National | $178,600 |
| Median Rent | $1,525 |
| National | $928 |
6. Allen, Dallas
Allen is a city in Collin County, Texas, a northern suburb of Dallas. Allen has plenty of restaurants, shopping and great schools, including Lovejoy High School and Allen High School. The famous Allen Event Center brings sporting, events, concerts, and live performances.
| Median Home Value | $220,500 |
| National | $178,600 |
| Median Rent | $1,261 |
| National | $928 |
7. Campbell Green, Dallas
Campbell Green is located in far north Dallas on Hillcrest and Campbell, just south of the George Bush Turnpike. According to Niche.com, it is ranked #1 in best neighborhoods to live in Dallas-Fort Worth area. The public educational facilities are quite good in Campbell.
| Median Home Value | $300,621 |
| National | $178,600 |
| Median Rent | $731 |
| National | $928 |
8. Coppell, Dallas
Coppell is a city in the northwest corner of Dallas County in the U.S. state of Texas. It is a suburb of Dallas and a bedroom community in the Dallas–Fort Worth metroplex.
It is a very family friendly and safe city in the suburbs of Dallas, TX. The school district here is phenomenal and the environment is truly great. Coppell is a very environmentally friendly city.
According to niche.com it is #4 in best places to live in Dallas, Texas.
| Median Home Value | $300,300 |
| National | $178,600 |
| Median Rent | $1,198 |
| National | $928 |
9. North Dallas
North Dallas is an area of numerous communities and neighborhoods. The majority of North Dallas is located in Dallas County, while a small portion is located in Collin and Denton Counties.
If you are looking for something quiet and serene, this is the place to choose. It has beautiful homes with tree-lined streets. You should think of buying an investment property in North Dallas because your tenants would love to live here.
10. Far North, Dallas
This region is far north than North Dallas. It has less amenities but is surely a good investment in terms of affordability. Preston Road is home to shopping malls, restaurants and outlet stores. It has a huge variety of outdoor activities and is a good place to settle down after retirement.
11. Farmers Market District, Dallas
As the name suggests, the Farmers Market District lies in the area of the famous Dallas farmers market. The Farmers Market District is an area in southeastern downtown Dallas, Texas.
It is quite a safe and secure area. Most of the residential neighborhoods are condos and apartments and still, it is one of the best places for investment in terms of rent.
It has affordable rental and investment properties that give a good return on money. The district is zoned to schools in the Dallas Independent School District.
12. University Park, Dallas
University Park is a city in Dallas County, Texas, United States, an inner northern suburb of Dallas. It comes in A+ neighborhood. This is predominantly a residential and family friendly area.
University Park is one of the most affluent places in Texas based on per capita income; it is ranked #12. It is known for its beautifully architectural homes and churches.
The neighborhood boasts some top ranking schools and provides a lot of outdoor activities. University Park is served by the Highland Park Independent School District.
Although it has a large population, it feels more like a community through the schools, parks, and small shopping centers. According to niche.com, it is ranked #6 in best neighborhoods to live in Dallas-Fort Worth area.
| Median Home Value | $1,047,200 |
| National | $178,600 |
| Median Rent | $1,886 |
| National | $928 |
13. Near East, Dallas
If looking for something more affordable than University Park, then Near East is the place to invest in Dallas. Though this is a newly developed residential place, the chic bars and designer shopping areas cannot be overlooked.
14. Highland Park, Dallas
Highland Park is a town in central Dallas County, Texas, United States. It is among the five wealthiest locations in Texas, and the most affluent suburb of Dallas.
The area is just three miles north from the center of Downtown Dallas. It is a thriving residential area surrounded by highland park and university park.
Highland Park has earned a reputation for having some of the most expensive home prices in this Dallas area. Public primary and secondary schools in Highland Park are operated by either the Highland Park Independent School District or the Dallas Independent School District.
| Median Home Value | $1,192,800 |
| National | $178,600 |
| Median Rent | $2,225 |
| National | $928 |
15. Oak Lawn, Dallas
Oak lawn consists of a diverse neighborhood, mostly of Urban professionals. Oak Lawn is one of the wealthier areas of metropolitan Dallas.
It has beautiful and newly built high-rise condos, duplexes and town-houses. It is surrounded by beautiful parks and marvelous restaurants. It is also a very diverse neighborhood with well established areas of older, single family homes.
One of the best areas to invest in Dallas. The public schools in Oak Lawn are part of the Dallas Independent School District.
| Median Home Value | $320,297 |
| National | $178,600 |
| Median Rent | $1,288 |
| National | $928 |
16. Bluffview, Dallas
Bluffview is an upscale neighborhood in north Dallas, Texas. The crime rate in Bluffview is very low. This is a highly desirable area to invest in Dallas which is most sought-after by families, especially for its serenity and tranquility.
It has a home for every taste; from the old-fashioned to the most modern. It sits ideally close to the downtown Dallas, yet away from all the noise and chaos. The neighborhood is served by the Dallas Independent School District.
| Median Home Value | $633,722 |
| National | $178,600 |
| Median Rent | $1,425 |
| National | $928 |
17. Lake Highlands, Dallas
Lake Highlands is a neighborhood constituting most of Northeast Dallas. The neighborhood is a collection of dozens of subdivisions served by RISD public schools, as well as an array of private schools.
Lake Highlands is one of the greatest parts of Dallas, located near the center of it. Lake Highlands has a mixture of a low cost of living and above-average median income.
It is also a mixture of Medium and small-sized single-family homes, but there also high rise apartments and apartment complexes.
| Median Home Value | $338,257 |
| National | $178,600 |
| Median Rent | $1,033 |
| National | $928 |
18. Main Street District, Dallas
The Main Street District of downtown Dallas, Texas runs along Main Street and is bounded by Lamar Street, Elm Street, the US 75/I-45 (I-345) elevated highway and Commerce Street.
The district is the spine of downtown Dallas, and connects many of the adjoining business and entertainment districts.
This is the area which gives the most amenities and safety. As such, the cost of investment properties here is bound to be higher. The area is one of the busiest and with very few moment of lull regardless of the time of day or night.
Let Us Help You In Buying Your First Investment Property in Dallas
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability. Consult with one of investment counselors who can help build you a custom portfolio of turnkey cash flow rental properties in the various growth markets across the United States.
All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching top real estate growth markets and structuring complete turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Remember, caveat emptor still applies when buying a property anywhere. The aim of this article was to educate investors who are keen to invest in Dallas real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
- Economy
https://www.dmagazine.com/publications/d-ceo/2017/december/dallas-innovation-economy-could-compete-with-silicon-valley - Best Dallas Neigborhoods For Buyers
https://www.movoto.com/guide/dallas-tx/best-dallas-neighborhoods-for-home-buyers
https://www.niche.com/places-to-live/c/dallas-county-tx
