A city that offers a unique blend of Southwestern hospitality, cosmopolitan flair, Old West charm and all the modern amenities one would expect of a major metropolis, Dallas consistently ranks near the top on a wide range of "best of the best" lists. A recent ranking by Forbes as the fourth fastest-growing U.S. city of 2014 is just one of its many accolades.
One major strength of the Dallas metro is its job growth. For example, Toyota recently announced it will move its 5,000-employee headquarters out of California and into the Dallas suburbs. Liberty Mutual is also moving its headquarters into the area. Real estate developers are investing over a billion dollars in a one-square mile stretch of Frisco, a large suburb a few miles north of Dallas, hoping to attract more businesses.
Q2 2015 Dallas Rental Market Update
In Q2 2015, Dallas was the third-best rental market in the Southwestern U.S. and 17th-best in the country as a whole. Since Q1 2015, Dallas retained its third place spot in the Rental Ranking Report's regional rankings for the Southwestern U.S. and jumped five spots in the national rankings.
The most impressive aspect of the Dallas housing market during Q2 2015 was its 9.44 percent year-over-year property value appreciation rate, an increase 86 percent greater than the national average and the ninth-highest in the country during that period. Dallas rents also increased by a respectable 5.09 percent year-over-year, a rate slightly higher than the national average. An extremely favorable job growth rate (3.49 percent, sixth-best in the country) and median age of housing inventory (38 days, fifth-best in the country) indicate that demand for housing in the "Big D" is remarkably high and will likely continue to be for many quarters to come.
Q1 2015 Dallas Rental Market Update
Dallas is ranked third in the Southwest and 22nd in the U.S. in our Q1 2015 Rental Ranking Report. Dallas has been a dynamite performer when it comes to property appreciation, with house prices soaring by 9.51 percent in the year ending in Q1 2015. Only 11 cities had better price appreciation during that time period. Credit goes to the aforementioned booming local economy, which is fueling substantial demand for workers, which in turn is driving demand for rental housing stock. In fact, we found Dallas to be the second most favorable rental market in the nation when it comes to the shortage of rental housing stock. This is a major boon for the ROIs of Dallas area landlords.
Dallas homes are only on the market for about 46 days. This places it ninth among the 75 metros considered in our Rental Ranking Reports. This indicates an active market and healthy demand for housing within the city.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q2 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the average number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Dallas rental property?
Quite simply, there has never been a better time to invest in rental real estate in the Dallas metropolitan area. Strong activity in the real estate market matched with excellent job growth and strong price momentum makes investment in Dallas rental property highly promising. With so many major employees moving into its affluent northern suburbs, well-placed rental properties in the Dallas metro will likely net you an impressive ROI.
Thinking about renting out a property in Dallas? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.