Rentals for both apartments and houses is a big topic in Dallas right now because it seems that the prices continue to grow and grow. Obviously, this may not be the greatest news for anyone who is planning to rent an apartment or house but it is excellent news for those who are considering purchasing a Dallas rental unit as an investment. This is backed up by a real estate investment management firm who have recently released their findings.
The 2017 National Rental Research Report for single family dwellings in the Dallas-Fort Worth area has provided a favorable rating. This interesting study takes 31 metro areas into consideration and then ranks them based on important criteria such as rental demand, investment opportunities, yields, investment home prices, and finally, capital market conditions. In simple English it means that if you have the ability to purchase a rental property in the Dallas-Fort Worth area then it would be smart to do so.
The Dallas area is projecting a stellar growth rate for jobs during 2017. There will be approximately just over 100,000 new jobs, which is almost a 3% increase. This figure suggests that there will be an increase in families coming into the Dallas area looking for those jobs. Even though these families may not be in the ownership pool immediately they often begin by renting.
Anyone who is thinking about a Dallas rental investment should do so sooner than later because there is an expected increase in rental costs by 3 – 5%. There will also be an expected vacancy rate drop of more than 6 1/2%. The study also points out the fact that many investors are now moving up in the quality scale while the more traditional buyers are going in the opposite direction.
This means that a first-time buyer may soon be priced out of the market because of strong price growth. All of the above facts and figures have placed Dallas-Fort Worth at the number 9 spot of the best places to invest in real estate.