Industry experts forecast that the Dallas-Fort Worth area is on target to be one of the country’s best real estate markets in 2023. Let’s look at why.
The recent Emerging Trends in Real Estate report puts Dallas at number-two among America’s overall real estate prospects, second only to Nashville. The DFW area also has the distinction of being a rising force among real estate markets, jumping five spots from last year’s standings, according to the joint report from the Big Four accounting firm PricewaterhouseCoopers and the nonprofit research group the Urban Land Institute. When considering homebuilding prospects – which investors keep keen eyes on – the report ranks Dallas-Fort Worth sixth in the nation.
Why is the DFW market so red hot these days?
The area is part of a rising tide of flourishing Sun Belt markets in southern and western states. While many of these areas do enjoy magnificent sunshine, it’s actually factors including housing affordability, attractive tax rates, lower living costs, thriving economies, and expanding infrastructure that are driving these markets. And not just for homebuyers; increased construction in the DFW area should tamp down the rise in the cost of rents.
How big is the construction boom?
According to Texas A&M University’s most recent Texas Housing Insight report, Texas was the state with the country’s highest number of single-family construction permits in September 2022, and the DFW area had the most permits among major metropolitan markets in Texas. Multi-family construction, a prime area for investment, helped the Lone Star State to lead the nation in construction permits. While the Texas Housing Affordability Index, which balances the median prices of homes against median family incomes, ranks Dallas as the state’s second most affordable major metropolitan area, second only to Houston.
What does this all mean for real estate investors?
It means now could be a great time to invest in the DFW market. So much so that the National Association of Realtors (NAR) has dubbed the DFW area a “hidden gem” in its 2022 research report, which identifies markets with room for growth. According to the NAR, Dallas-Fort Worth has a number of key factors that drive that growth: a large share of residents ages 25 to 44 (prime home-buying years), a strong home-value-to-income ratio, and a steady migration of people from other parts of the country.
Will you be part of that growth? Contact a loan originator at the Decker Group at First United Bank Mortgage online or call us at (972) 591-3097 to talk about investing in one of the country’s top real estate markets.