Best Time to Invest in Real Estate in Dallas

Why Now Is the Best Time to Invest in Real Estate in Dallas

For over seven years, the residential real estate markets across the United States have been slowly climbing out of the hole that was left when the housing bubble burst in 2008. While other markets have seen halting, faltering progress with a lot of dips, valleys, and stagnancy, real estate in Dallas has been consistently ahead of the curve.

In general, buying homes in Dallas has been a great investment move for years now, but that makes some newer investors nervous. They believe that they must have “missed the boat” and passed up the opportunity to get in on the ground floor with a lot of great investment opportunities. As a result, now they think that investing in real estate in Dallas at this point will not yield good deals or positive returns on their investments. This couldn’t be farther from the truth, though. The Dallas residential market is hotter than ever, but experts do not believe that it is anywhere near its peak. In fact, now is the perfect time to buy homes in Dallas and build your investment portfolio for a number of reasons.

More Jobs Mean More Tenants

First of all, Dallas is home to a lot of major industries, and the economy here is booming. We are seeing more and more businesses moving in and/or increasing their presences in the Dallas/Fort Worth area, including State Farm, Raytheon, AT&T, American Airlines, Southwest Airlines, Dean Foods, Dr. Pepper, and a long list of other Fortune 500 companies.

With more jobs flooding into the area, more people are moving here and are in need of rental properties. Young professionals are waiting longer these days to buy houses, which means that a lot of the tenants coming into Dallas are likely to be long-term ones, rather than those who’ll stay just a year or so and then find a house to buy.

Basically, because more companies are moving into the area and bringing more workers, the housing market is expected to continue to see growth because tenants aren’t just moving from one place to another. Instead, there is an all-time high in demand for rental properties in and around Dallas.

Home Prices Are on the Rise

Not only are rental rates up, but home values are increasing at a significantly higher rate than other residential markets in the United States. Experts say that this has to do with the diversification of industry in the Dallas area. Think of it this way… You diversify your portfolio to maintain its stability and to continue growing your wealth, no matter what any one particular asset or market does, correct?

Well, industry in Dallas is much the same way. Looking at the brief sampling of just the Fortune 500 companies in the area, you can see that there are numerous industries represented. Unlike a city like Detroit, which was built almost solely on the auto industry and has seen disastrous declines since the ‘90s, Dallas is built on such a wide variety of industries that no single industry recession can hurt the city and/or its surrounding neighborhoods.

At the moment, other cities’ real estate markets are faltering due to the current energy recession, but Dallas is flourishing, thanks to its diversified field of industries. Thus, while other markets are flat or declining, the housing market in Dallas is in full swing and showing major demands that only look to continue upward.

Waiting to purchase real estate in Dallas right now would be a mistake because current market prices are as low as we can expect to see them at any time in the near future. The market looks to be sustainable, and there is no shortage of long-term tenants for rental properties. Whether you are investing directly in homes in the Dallas area or you’re interested in buying equity in a larger residential or commercial project, now is most definitely the time to make your investment.