Dallas Investment Property Market

Dallas Investment Property Market Overview

Dallas is the economic center of the Dallas-Fort Worth metropolitan area, which spans 12 counties with an estimated population of 7.1 mm1. Single-Family Rental (SFR) home values in the market are expected to grow 16% by December 2019 compared to December 2015 values2. The Dallas market ranks 2nd in SFR rankings, which are an aggregation of strong performance in rent growth, employment growth and home price appreciation2.

Strong Home Price Appreciation Forecasts and a Top Market for Rent & Employment Growth

In addition to strong home price appreciation forecasts, Dallas is expected to have robust rent and employment growth making it an excellent market for SFR investors. As of 2016, rent growth in Dallas is 5.1%, which is significantly ahead of the national average of 3.7%, and employment growth is 4.2% compared to the national average of 1.7%2.

Another factor that makes Dallas a great SFR investment market is gross yield: the Dallas average is 10.1%, which is above the national average of 9.5%2.

A low supply of homes for sale continues to drive up prices in the market, and strong SFR fundamentals (job growth, household growth, income growth, and housing supply) keep pace with home price appreciation. The Dallas market is home to the third-largest concentration of Fortune 500 companies in the nation, including ExxonMobil (2nd) and AT&T (10th) in the top 10, which continues to drive job and income growth3 in the region.
  • Rent and Employment growth: A top market in the nation for rent and employment growth4
  • Strong gross yields: Average gross rental yields of 10.1%, compared to the national average of 9.5%2
  • Low negative equity: 1.8%5 of homes in the market have an outstanding mortgage balance that is greater than fair market value, which is well below the national average.
  • Tax rate: Texas is among the top 10 states with the highest property taxes in the United States6.
  • The Dallas Arts District, a 68-acre district home to a number of performance and visual arts venues, is the largest urban arts district in the United States.
  • The integrated circuit computer chip was invented in Dallas by a World War II veteran named Jack Kilby at Texas Instruments in 1958.
  • Dallas/Fort Worth International and Dallas Love Field airports provide service to more than 2,200 flights daily.
  • 1 U.S Census Bureau
  • 2 John Burns report, October 2016
  • 3 Fortune.com
  • 4 John Burns Quarterly report, August 2015
  • 5 findthehome.com
  • 6 wallethub.com

Real Estate Investment Insights

Investment Style: Balanced
While each property will differ, this market is likely to have properties that provide a blend of yield and appreciation.
Inventory:
Home Value *
$212,500
$200,700
National Avg
Home Value Growth (YoY)
9.6%
6.8%
National Avg
Rent **
$1,588
$1,427
National Avg
Source: Financial data from Zillow includes single family, condo & cooperative homes, updated on 07/31/2017
Job Growth (YoY)
3.4%
1.5%
National Avg
Household Growth (YoY)
2.4%
1.0%
National Avg
Estimated Months of Resale Supply
2.9%
4.3%
National Avg
Household Income
$63,500
$59,303
National Avg
Supply, Demand & Affordability data includes single family homes only, updated on 08/16/2017
  • Arrows indicate the directional change since the last update. No arrow indicates that there was no change in the data or no previous data is available.
  • * Home Value: includes all types of housing, including primary resident, condos, investment properties, etc.
  • ** Rent: includes all rental properties, including Single-Family Homes, multi family units, etc.