The housing market in Dallas is looking mostly positive at the beginning of the new year. This city has always been one of the best in the market to invest in, and that will continue to be true. With population growth, a great economy, and a strong job market, you can’t go wrong with investing. Here are a few trends and predictions that will guide you through the new year.
Cooling Trend
Trends have shown that houses have been gradually staying on the market longer in the past few years. This means people wanting to buy property will have an advantage in the market as they’ll have more negotiating leverage in comparison to past years.
Single-Family Homes in High Demand
Last year, single-family homes constituted 69% of all Dallas homes for sale. With so many young people coming into Dallas looking for jobs, it makes sense that this would be the case. However, this is also the steepest declining segment on the market. This means, if you can get your hands on one, these properties will be the most profitable to rent out or resell.
Population Growth
The Dallas area had more growth in 2017 than any other metro area in the United States. It used to be ranked fourth-largest area in the country, but with a 1.8% increase in population from 2017 to 2018, they were able to push themselves to the top and be named the largest metro area in the country. Even expanding to the suburbs of Dallas, Texas including Richardson, Plano, Frisco, McKinney, and DFW, Dallas as a whole has increased their population immensely. According to The Dallas Morning News, between the years 2010 and 2018, there was an increase of over 3.5 million people. This is the equivalence of about 1,000 new residents a day! The population will continue to grow this year, causing a higher demand for housing and rental units.
Strong Job Market
The unemployment rate in Dallas was at 3.3% in the summer of 2019, slightly lower than the national average. The state’s favorable tax structure and lower housing costs attracts many companies to the city. In the DFW area, there were many real estate deals that went through last year including a new AT&T campus in the middle of downtown Dallas. More than 5,000 workers are employed in this building, and The Discovery District redevelopment will include thousands of square feet of new retail and restaurant space, creating hundreds of jobs. This is just one example of the ever-growing job market in the Dallas area.
AirBnB Dallas Will Remain Legal
Dallas will remain one of the few major cities in the US which doesn’t limit short term rentals in any way. This will encourage out of state real estate investors interested in this particular strategy, as many other big cities such as Chicago, Los Angeles, Anaheim, and even Austin discourage or prohibit short term rentals. This is also expected to be the most profitable rental strategy this year, as well as with years to come.