It sure is! The DFW housing market, rental market, and economic conditions have come together to make this an excellent time to buy an investment property.
A Huge Demand for Rentals
Anyone searching for an apartment can tell you what the statistics show: about 94% of the rental units in Dallas are occupied. A real estate analysis by RentCafe found that, on average, eight would-be renters compete for every vacant unit in Dallas. With a high retention rate. About 60% of renters renew their leases every year.
More Renters Arrive Each Day
How many more? The most recent Census Bureau data shows that around 50,000 people move to Dallas annually. With a population growth rate of 16%, Texas more than doubles the national average of 7.4%. This influx of people continually adds significant numbers to the renter rolls; about 43% of Dallas residents are renters.
Some of America’s Best Appreciation Rates
Buying a rental property in the Dallas-Fort Worth area is a solid investment. According to RealWealth, home values in Dallas have surged over the past ten years, with an annual appreciation rate of 8.91%. From 2014 to 2024, Dallas outpaced the national average of home appreciation by 35.12%.
Rent appreciation is on a similar trajectory. Over the past decade, average monthly rent in the DFW area has risen by 43.19%, up 4.07% annually. This outpaces the national median monthly rent appreciation by 4.12%.
Properties at Affordable Prices
While home prices are rising all across America, the DFW area stands out as a bargain among major U.S. metropolitan areas. New York? San Francisco? Los Angeles? Seattle? Boston? These all make the list of America’s most expensive housing markets. Dallas, however, has a proud spot among the top 10 cities where your home gets the most bang for the buck.
Bright Economic Days Ahead
In recent years, Dallas has led the shift of the overall U.S. economy toward Sun Belt cities. The DFW area has 24 Fortune 500 companies with annual revenues only second to those in New York. The Dallas region has the country’s highest year-over-year job growth rate, at 4.4% in 2023. While just about 2% of the U.S. population lives in DFW, the area nabbed a whopping 10% of net jobs created in the U.S. from 2020 to 2023. And all signs point toward continued economic growth.
If you’re ready to buy a rental property, we’re ready with the financing know-how to help make it happen. Connect with us online, or call us at (972) 591-3097.
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