A booming economy, consistent population growth, and a high percentage of the millennial population have skyrocketed the demand for properties in Dallas, boosting the real estate market here. Property prices in Dallas are expected to increase by 16% by the end of 2021, outpacing the three other major Texas metro regions in terms of home sales growth.
Dallas is a top location for real estate investors as it appeals to a wide range of people. Millennials come for big-city excitement and jobs, families settle in the charming suburbs, and retired people enjoy the soothing climate and high standard of living.
It’s the most buzzworthy and recognizable metropolitan area in the U.S. Here’s how the market trends are fluctuating this year, making Big D a prime location for your next property purchase.
Prices Are Better Than National Averages
According to D Magazine, the real estate market in Dallas is the strongest it's ever been. Today's housing prices in Dallas are better than the national average.
The median house purchase price in the Dallas metro region in 2020 was $263,688, whereas the national average was $254,000. This means the median purchase price is roughly about 4% more than the national average.
However, the median price of a property in the neighborhoods where investors tend to invest was $165,000 in 2020. This is 35% less than the national average of $254,000.
This demonstrates that inexpensive housing in Dallas is still available and you can find affordable homes here.
You Can Earn a Passive Income
Investing in Dallas homes provides you with an opportunity to earn a monthly income in the form of passive income.
The average monthly rent for a property in Dallas is $1563 or 0.59% of $254,000, which is the buying price. On the other hand, the monthly rent in the neighborhood is about $1400 or 0.85% of the purchase price of $165,000 [sf1]
Dallas provides a fantanstic possibility for you to generate considerable monthly rental revenue.
Increasing Housing Values
In the last six years, housing values in Dallas have risen significantly and are expected to grow further.
The average property value in Dallas has increased by 55% in the last six years (2014 to 2020). Home values in other areas across the United States increased by only 36% during the same period.
Home values in Dallas are rising faster than in other cities throughout the country. This trend will continue as long as job growth and a low cost of living continues to allure people to relocate here.
Increasing Rental Costs
Today, the rental costs in Dallas are also rising at a faster rate than in other U.S. states.
The average rent for residences in the Dallas metropolitan region has climbed by more than 25% in the last six years. During this time, rents in the United States soared by 23%.
Rental prices are rising in the face of growing demand. This trend will carry on as people and businesses continue to relocate to the Dallas metro area.
Rapid Population Growth
According to the Dallas Business Journal, the population of Texas continues to grow as individuals flock to the city in droves.
Last year, the population of the Dallas metropolitan region increased by about 2%, helping Texas gain more citizens than any other state in the U.S.
Key population stats include:
• The city of Dallas has a population of over 1.3 million people, with a metropolitan population of over 7.5 million.
• The population of Dallas increased by 2% just last year.
• Dallas is Texas' third largest city and the country's fourth-largest metropolitan area.
• Rockwall counties, Kaufman, Denton, Collin, and Dallas County, are major counties in the Dallas metro area.
• Dallas-Fort Worth is expected to witness the largest population growth in the country this decade, with a predicted increase of about 18% by 2029.
• Dallas has a median age of 35.2 years, with 43 percent of people aged 20 to 49.
• The median household income in Dallas is $72,265, with a per capita income of $36,274.
Growing Employment Opportunities Attract More People
Due to the COVID-19 outbreak, Dallas reportedly lost 125,000 jobs in the last year. Despite the epidemic, the job market in Dallas performed 46% better than most other U.S. cities, proving Dallas is still a job hub. It continues to be the tenth best place in the world for careers and business.
Dallas remains a center of jobs while many other regions of the country are still recovering. These new employment opportunities in Dallas have sparked a land rush. As a result, Dallas and the rest of North Texas have become one of the country's fastest-growing cities.
The stats show that
• The GDP of the Dallas-Fort Worth-Arlington, TX MSA is over $523.9 billion, up nearly 62% in the last ten years.
• Fort Worth's employment growth is 2.89% every year, with more than 3.8 million people employed in the metro area.
• In the past year, median family incomes in Dallas have climbed by more than 3%, and average property values have increased by more than 11%.
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We make the process the buying and selling of modern homes in Dallas, TX, easy. Our agents will help you find a perfect home for your investment portfolio in areas around Dallas, including Preston, Knox Henderson, Lake Highlands, and Downtown.
Contact us for a consultation today!
