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INVESTING 101 EDUCATION

Dallas Investment Outlook in a Nutshell

Dallas continues to be a strong investment market, even as other regions of the country may be beginning to show some signs of weakening.  Economic experts are still debating whether a bona fide recession is in the cards, but there are some signs that some changes could be coming. There are always indicators of economic health that investors can look at to see where it makes sense to invest at any given time. Some experts say that if you know where to invest, you can make money no matter what the market is doing. Investors use a variety of methods to try to get consistent returns; whether moving money around among stocks and bonds, investing in real estate or getting fixed rate returns through private money lending. In Dallas, real estate appears to still be a very strong market worth consideration for your investment dollars. Here’s a market overview of the Dallas, Texas region:

 

Dallas in History

Dallas has long played a key role in the overall Texas economy. As the third most populated city in Texas, this north Texas metropolis is the unofficial center of the Southern United States. It’s the fourth most populated area in the United States, with a growing population last recorded at over 7.5 million. Dallas established itself as an important  transportation hub when railroad construction turned it into an industrial city that attracted ambitious workers from miles away.

 

Why Invest in Dallas Today

  • Today, Dallas retains its status as a transportation hub with DFW International Airport that officially opened in 1974. The airport has a total of seven runways and 164 gates, and serves 257 destinations according to the airport’s own website. Especially amazing is the fact that “Every major city in the continental United States can be accessed within four hours.” This is a huge benefit for investors, workers and companies that want to do business in Dallas.
  • Jobs are plentiful in Dallas. The unemployment rate in Dallas is only about 3.6%, which is slightly lower than the national average of 3.9%. Over the past year or so, the job market in Dallas seen an increase of about 3.3%. Predicted job growth over the next decade is expected to hover around 45%, significantly higher than the national average of 33.5%. Large Dallas employers include Southwest Airlines, AT&T, Kimberly-Clark, Amazon, Google, Texas Instruments, D.R. Horton, and many more.
  • Dallas has no income tax. Compare that to the U.S. average of 4.6%, and it’s evident that’s likely a big reason why millennials and other skilled workers are flocking to the Dallas region. Income tax rates weigh heavily on a city’s comparative cost of living, and Dallas stacks up very well to other large cities like San Francisco, Los Angeles, Boston and New York.
  • Dallas, like other Texas cities, is considered a landlord-friendly state. The laws favor landlords when it comes to tenant-landlord disputes. If a situation arises where an eviction is necessary, the process can start very quickly. If you have a turnkey rental managed by with American Real PM, you don’t even have to be involved in the eviction process at all.
  • Median home prices in the metro region of Dallas are just about $191,000, compared to the U.S. national average of about $202,000. This adds to the affordability of Dallas, and likely contributes to its popularity as thousands move into the DFW area every day.
  • Passive income investments are still possible in Dallas. Although it’s getting harder to find cash flowing rental properties in Dallas, there are still some deals out there. Median rents for three-bedroom rentals are over $1500 a month in Dallas, whereas the rest of the nation is only a little bit over $1400 per month. This means landlords can charge more in the beginning and increase rents when leases come up for renewal, which helps with cash flow.
  • Property values have been consistently increasing over the last six years or so. In 2012, median home values hovered under $124,000 in the metro area. Median values have continued rising each year to where they currently sit at around $191,000. Real estate investors in Dallas can not only enjoy decent cash flow, but can look forward to having their properties appreciate more dramatically compared to the national average.
  • Dallas rents are also on the rise. In fact, they are rising faster than other U.S. rental markets. It’s highly unlikely that a real estate investor in Dallas would have to lower rents, even if a full-blown recession does affect the rest of the nation at some point. Since 2012, median rents for three-bedroom rentals in Dallas grew by a whipping 26%. This is faster than most other big cities in the country. Demand is driving up rents, making Dallas a creditable real estate investment choice.
  • Top of the lists across the board. Forbes and other major media outlets have voted Dallas at the top of the lists for, Best Cities to Buy Housing, Fastest Growing U.S. Cities, Best City For Families, Best City For Jobs, Best Place For Business and Careers, Best Places to Live, and more. While these kinds of lists may sometimes be subjective, they reach millions of readers who take the information into consideration when choosing a new job location, place to raise a family and place to build a business.

There are many reasons to invest in real estate in Dallas. But one of the main reasons, which isn’t always evident when looking at “just the facts,” is the support of the Dallas, Texas government and the will of the people themselves. Dallas, Texas politicians have always had the interests of the people in mind when laws are created. Dallas and its surrounding area is made up of people with strength of character, a willingness to work hard and the determination and intelligence to get through the economic challenges that are a part of life. It’s one reason why we’re so invested in the Dallas area and why we think you should be, too. For more information about investment opportunities with us, please contact us today.