Are you looking to make your money work for you? Did you know that Dallas-Fort Worth is a thriving marketplace for rental home sales! Housing in Dallas-Fort Worth is doing well after recovering from the devastation brought by the pandemic since July of the pandemic year. Rents have gone high since then.
Due to rising house prices, many people have moved back into apartments, which has caused rents to increase. In addition, Dallas-Fort Worth continues to attract renters. Around 70,000 more people moved here in the last year. The standard price of a home is up by 20% from December 2020 to December 2021. Built-to-rent has become a trend-setter in DFW and is at the 3rd rank in the USA. The built-to-rent homes within the greater Dallas-Fort Worth area are 4,290.
Single-family rental average rent increased by 17.1% year-over-year to $2,195, while the median price was highest in McKinney, TX — $479,000, up 26.1% YoY. The rising population has caused a shift in housing demand. A rise in the number of households results in a surge in housing demand, which drives home prices to rise.
Due to the rise in prices for new and existing residential properties in Dallas-Fort, it has become challenging to decide whether to sign a mortgage note or a lease. But if the investor wants to build long-term wealth, the decision will be worth it!
Despite rising rents, the cost of renting per month will still be less than owning a house, as there are a lot of factors that add up when owing a house, like home maintenance and other costs.
Dallas is one of the cities in the U.S. where renting is more cost-effective than buying. Young people have been a major reason why Dallas has grown over the years, and they continue to do so. Instead of purchasing their own homes, they have preferred to invest in rental properties. The demand for rental units in Dallas has increased by 14 percent in the last year, making now an ideal time to invest in the city’s housing market.
Then why wait? Invest in houses for rent and contact the right property management company for everything from collecting rent to excellent low-cost maintenance.
It’s a Rental Owner’s Market
Dallas’ news reports that popular neighborhoods have seen a 50% increase in sales due to low mortgage rates and increased demand from in-state and out-of-state buyers in recent years. High home prices in Dallas, a rise in population, and a thriving job market are the three reasons why there is increasing demand for a rental property in Dallas and shall remain so in 2022.
With some of the best colleges in the country being located in Dallas, there will be a hike in students and graduates that will be a part of the rental market. According to a Rent Cafe report, the average rent for an apartment in Dallas is $1250, a 4% increase compared to 2021. Forty-two percent of households in Dallas are renter-occupied, and 57% are owner-occupied.
Nearly 80% of the apartments can be rented for less than $1500. Dallas has a historically low vacancy rate for rental properties, making it a good place for investors to consider investing in the Dallas real estate market.
For renters in the Dallas-Fort Worth area, Flower Mound is the most expensive city, with apartments renting for $1,599 a month. Frisco is second, with an average monthly price of $1,497. Farmers Branch is third, with a monthly cost of $1,459. Renters looking for affordable apartments will find Greenville’s $891 average rent the cheapest in Dallas, followed by Balch Springs’s $934 rate. Lancaster rentals are the third least pricey on the list, with a $1,031 average rent as of April.
Local Rental Statistics
- Since August 2021, there has been an increase of 5% in one-bedroom apartment rents.
- Dallas is currently ranked the 29th most expensive city in America.
- 16000+ new apartments started leasing in 2021
- 97 % of Dallas-Fort Worth apartments are filled.
- Of the total occupied housing units in Dallas, 44% are renter-occupied households.
- Victory Park, Coronado Hills-Gaston wood, and uptown are among the most expensive Dallas neighborhoods, with average rents exceeding $8,000 per month.
Finding growing markets is a basic requirement when investing in rental property. Cities like Richardson, Plano, & Garland are good for investors looking to invest in rental properties at an affordable cost. These trends show an increasing rental demand.
Every real estate market has its supply-demand dynamics and unique neighborhoods, offering unique opportunities for investors. These cities offer attractive prospects of investment in rental property this year as rents increase.
In summary, real estate investing is the ideal formula for creating passive income and making your money work for you!
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