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Home prices in DFW and the rest of North Texas show no signs of leveling off. According to a report from The Dallas Morning News, median home prices were 18% higher in November 2021 than a year ago. Inventory levels remain tight, with only 8,200 single-family homes recently listed for sale in a metro area with about 1.9 million single-family housing units. An above-average population of millennials, robust in-bound population growth, and a thriving economy are just three of the many reasons why the DFW real estate market and demand for rental property are increasing. Real estate investors love DFW, and it’s easy to see why! It’s got something for everyone: millennials flock here for the jobs and big-city excitement, families put down roots in its quaint suburbs, and retirees love the warm climate and quality of life. Dallas is one of the most recognizable and buzzworthy metropolitan areas in the U.S. — if not the world — and is considered a quasi-gateway city for investors looking for dependable, liquid real estate environments. Fortunately, despite its popularity and skyrocketing growth, DFW is still an accessible market with lots of upside. The population of the Dallas-Fort Worth area continues to grow, and is now the 4th largest metro area in the country, up from 6th place in 2010. In fact, DFW was only one of three metros to gain at least 1.2 million residents since 2010, along with Houston and NYC.
While many other parts of the country are still struggling to recover, DFW is still a job hub. In fact, DFW is the nation's #1 job market thanks to solid employment gains and in-migration. As The Dallas Morning News reports, Dallas scores high in top leading labor indicators such as net migration, college degree holders, job gains and growth, and working age population growth. Dallas is ranked by the National Association of Realtors (NAR) as one of the top 10 markets in a post-pandemic environment in 2021-2022. Looking at the recent housing statistics, it’s easy to understand why. According to the most recent report from the Texas Real Estate Research Center (Nov. 2021), single-family home prices increased by over 18% year-over-year, while months inventory declined from a 1.3 to 1.0 months supply. Home prices are rising in most DFW neighborhoods, creating one of the hottest home markets in North Texas. As the Dallas News recently reported, low mortgage rates and feverish demand from in-state buyers and remote real estate investors are pushing home prices up by 50% in some of the most popular neighborhoods in Dallas. High home prices in DFW, along with a growing population and thriving job market are three of the reasons why demand for rental property in DFW should remain robust in 2022.
With so many housing markets in the U.S. it can be difficult for real estate investors to choose the best cities for single-family renters. Experienced real estate investors also research housing affordability to help forecast the current and future demand for rental real estate. Affordability compares the amount of annual income needed to purchase a median-priced home in DFW. Real estate prices in DFW are still surprisingly affordable, the job market is robust, cost of living is low, and there’s an amazing culture scene. Add to this the fact that Texas has no state income or inheritance tax, and it’s easy to understand why so many people and businesses are moving in!
Below is a detailed report from Texas A&M on the DFW housing market.
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Jay Hartley MPM®, RMP®
Owner - Managing Partner
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Office | 817.377.3190
Direct | 817.288.5546
Frontline Property Management, Inc.
3000 Race Street, Suite 132
Fort Worth, TX 76111
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New Trends in Real Estate - 2022 |
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Each year, this fast-paced industry changes and grows in different ways. With the Covid-19 pandemic, everything took a sweep and evolved in ways we never thought possible. It has not only brought change, but it has brought it so rapidly it has been hard to keep up.
Here are some of the up and coming trends in Real State starting this 2022:
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Real estate technology and digitalization
are transforming the industry
Technology has changed how buyers and sellers relate to each other. Digital purchases through iBuyer companies have grown over the last years, particularly the last 2 years when non-contact deals were crucial. Since it is still a business model that’s new, we’ll need to wait and see how it evolves over this year.
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Mental health spaces will increase worth
If we learned something in this pandemic is that mental health and well- being spaces and features are so important. Homes with outdoor and indoor amenities focused on giving the occupants a relaxing atmosphere will increase the worth of the property and will be more appealing to both buyers and renters.
According to Zillow, comfort, natural light and sustainable features in homes will be the things that will make or break a deal.
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Housing affordability will have pros and cons
According to experts, both home prices and mortgage rates will go up in 2022, but so will rent prices. This means, in some markets (including in large cities like Houston, Chicago, and San Diego), it is starting to be more affordable to buy a house than to rent one.
However, the rise in interest rates can cause a huge impact in the newer generations such as Gen Z and Millennials ability to purchase a home.
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Suburban homes will be more sought after
The high demand for greener, more open spaces has made people look for more suburban homes rather than city residences, and with home-office adapted and remote jobs in their height, people can now move away easily and buy/rent bigger houses far from city hubs. Just since the beginning of Covid-19, the search for suburban home listings went up 42%!
This will continue throughout the year and will probably be a trend that stays for many years to come.
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Disclaimer: This is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Consult with your own attorney, CPA, and/or other advisor regarding your specific situation. |
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