Why invest in the DFW real estate market and what makes it so special?
Highlights
- Population expected to increase by almost 50% in the next 20 years.
- Dallas is one of the leaders in the U.S. for employment and population growth.
- 54% of Dallas rents vs. 33% nationally.
- Newly remodeled REOs (2004 or newer).
- Properties 5% – 15% below market value.
- 3-year appreciation forecast of 11.4%.
Massive Population Growth
The population in the North Texas has been witnessing a high population growth and is projected to see increased growth in the coming years. From 2020 through 2029, DFW is projected to tack on another 1,393,623 residents, and projected to be almost 11 million people by 2040. For the second decade in a row, that would be the highest number of new residents for any metro area.
Employment Creation & Economic Growth
The growing city of Dallas has been ranked as the 2nd in the nation for job growth with over 500,000 jobs created in the recent past. There are several companies that have opted to choose Dallas in Texas as the headquarters for their offices. Out of these companies, 24 of them are Fortune 500 companies. With industry giants such as Toyota, Boeing, State Farm, and Kubota making significant investments in the Dallas/Fort Worth area, North Texas boasts one of the most diverse professional markets in the country – which requires a significant workforce.
Landlord Friendly!
Despite having a slightly higher property tax rate of 1.83%, landlord-tenant laws in the Lone Star State are generally landlord-friendly. Texas real estate law does not limit on how much you may charge for a security deposit at the state level and allows landlords and tenants to enter into their own agreements for repairs; landlords can refuse to pay for repairs if tenants are behind on rent payment.
Laws in the Texas housing market also favor rental property owners when lease conditions are violated. If you want to evict a tenant for not paying rent, you only have to provide a three-day written notice to pay or move out. If your tenant does neither at the end of the three days, you may go to the court and file for eviction.
Landlords can withhold the security deposit and return it to the tenant no later than 30 days from move-out.
High Renter to Owner Ratio
Just over half of Dallas County households rent rather than owning a home, and the number of renters is up sharply in the past 10 years.
Since 2017, some 54% of DFW households rented in and 46% percent of households were homeowners in contrast to 44% and 56% in 2008 respectively. This trend is increasing as home prices increase and inventory decreases creating a huge deficit for affordable rental properties. Moreover, this situation is causing renters to move further outside of DFW, creating new investment opportunistes in outlying cities where properties are cheaper.
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Our dependable, knowledgeable real estate agents and a staff of professionals have over 30 years of investment and property management experience. No matter the status of your current portfolio, we will continue to assess your needs as an investor. By maintaining constant communication with you, we can determine which direction to take your portfolio as it changes.
Whether you wish to increase the number of investments in your portfolio, downsize, or just maintain what you have, our staff is here to provide professional guidance when needed. You can count on us to be available any time to answer questions, provide feedback, and offer sound investment advice regarding the Dallas/Fort Worth Metroplex and the status of its real estate investment market.