Real Estate Investors

Why are Real Estate Investors Flocking to Dallas?

If you’ve been researching the best avenues for diversifying your portfolio, growing your wealth, and earning passive income, you’ve no doubt considered residential real estate investment in Dallas. While just a few years ago the nation experienced a devastating real estate crash, today investment properties for sale in Plano, Dallas, and Fort Worth are gaining worth at an incredible rate.

Demand Outstrips Supply in the Dallas Rental Market

According to Dallas News, apartment rentals present a very desirable market for investors right now. While over 35,000 apartments are currently in construction in the DFW area, the demand still exceeds the supply. Less than five percent of the area’s apartments are vacant, and despite new construction, vacancy rates continue to drop. As a result, rental fee rates have increased by approximately 5.5% in recent months.

What It Means for Investors

With so much new construction, experts currently expect rental growth to slow within the next two years, but they do not expect decreases in rental fees. All this suggests that now is the perfect moment to look into a residential real estate investment in Dallas, especially if you are interested in purchasing rental property.

When you look at the numbers, you can clearly see why more and more investors are flocking to the Dallas-Fort Worth area. The current boom in apartments and other residential investment properties for sale in Plano, Dallas, Fort Worth, and the surrounding area will not last forever. However, unlike a housing bubble, this “boom” is expected to slow, rather than burst or deflate. Thus, it makes sense for investors to place their capital now, begin reaping benefits immediately, and continue to gain wealth over the coming years.

Single-Family Homes Seeing Market Growth Too

While many investors find multifamily properties attractive – and while it can be highly profitable to pool your capital with other investors in a real estate investment trust (REIT) – this style of investment is not for everyone. Investors interested in single-family rental properties have also been finding a great deal of success here, as well.

In fact, the property values for single-family residences in Dallas and the surrounding area are increasing at roughly double the rate of the rest of the country. According to Dallas News, the average market growth in other areas of the United States is 4.2%, whereas in April of this year Dallas property values rose an average of 8.8%.

Residential real estate pricing is still very reasonable, and rental rates are expected to continue to grow in the coming months. Investors are flocking to Dallas to see larger ROIs and to take full advantage of the current growth in the housing market. Whether you are interested in investing in multifamily or single-family residences, you should consider the Dallas real estate market to diversify, stabilize, and grow your portfolio.