Dallas-Fort Worth has been prominent for affordable real estate throughout the years. For this reason, it is one of the most significant contributors to the growing population of the Lone Star state. Offering a vast landscape as the second-biggest state in the US, Texas’s real estate market will likely continue to be robust in 2021.
Real Estate Market Affordability Forecast
The Home Buying Institute notes that home prices in Dallas rose by more than 9% over the last year. They predict that the housing market in Dallas-Fort Worth will remain strong, largely attributable to low supply and high demand due, in part, to the population growth of the area. The United States Census Bureau reported that “By metropolitan area, Dallas-Fort Worth-Arlington, Texas, had the largest numeric growth with a gain of 131,767 (1.8 percent) in 2018”.
What Does it Mean for Dallas-Fort Worth Sellers?
The uneven proportion between the supply and demand makes it a seller’s market. Simply put, it is a great time to sell with a growing number of people looking to move to DFW.
What Does it Mean for Dallas-Fort Worth Buyers?
Despite the rising prices of real estate properties, buyers can always take advantage of favorable mortgage rates and this may be a good time to take advantage of the incentives and valuable deals that lenders are offering.
Out-of-State Buyers Driving the Demand for Real Estate Market
The trends suggest that more out-of-state buyers will drive the demand in the real estate market. New graduates often relocate to the Lone Star State for the opportunities ahead. Home to a numerous Fortune500 companies, Dallas-Fort Worth provides opportunities for both recent graduates and for established professionals.
Even though DFW home prices have increased over the last few years, this area is still cost-effective.
- Low Cost of Living: In comparison with other urban centers such as San Francisco and New York, it is relatively inexpensive to live in Dallas-Fort Worth.
- Opportunities to Explore: 22 Fortune 500 companies headquarter in Dallas, so there is a diversity regarding job growth and prospects.
- Ideal for Retirement: Due to its affordable properties, convenient public transportation, and state-of-the-art healthcare system, many people choose to retire in Dallas.
- Diversity: According to this report, Dallas is among the five most diverse cities in the US. It takes pride in the diverse culture, art, and camaraderie. The professional sports teams in Dallas include Texas Rangers, Dallas Mavericks, NHL Dallas Stars, and the Dallas Cowboys. They contribute about $5.5 billion to the economy of the city each year.
What About the Rental Market?
The high demand / low inventory ratio of single-family dwellings position has fueled increases in rental rates that have outstripped wage growth. That, coupled with an unemployment rate of more than double the previous year (7.10% in November 2020 versus 3.10% in November 2019), raises some concern about whether rental prices can be sustained and also whether the tenants hit hardest in the economic strain of the pandemic can meet their rent. Some of this concern has been offset by new government stimulus benefits and the City of Dallas Emergency Short Term Rental Assistance program.
Owners of rental properties who do not currently engage a property management firm should consider doing so to provide assistance with tenant screening and signing, rent collection, lease renewals, and all other aspects of property management.