Welcome to Dallas
Dallas is in the air. Many living in coastal cities can attest every other person they know has considered moving to the area if they’re not already looking at Dallas properties and rentals. Data from Redfin confirms the city’s real estate market is one of the hottest in the nation—the average sale price increased 17.5% from last year, and the average square foot price grew 13.7% as well. Although Dallas’ real estate market has been enlarging steadily for several years, the unique changes brought on by the pandemic have only accelerated this growth.
The message is clear: now is a great time to invest in Dallas real estate. Let’s dive into the reasons why this is happening and what new homeowners and investors can benefit from.
Population Explosion
Dallas is home to over 1.3 million people, and another 7.5 million live in the greater metropolitan area. Yet, last year the population still grew by 1.9%. As the third-largest city in the state and the fourth-largest metro area in America, Dallas’ population is projected to grow by a whopping 18% by 2029.
It’s also worthwhile to mention the current work-from-home dynamic may contribute to additional population growth in Dallas. Since Silicon Valley tech companies may allow their employees to work from home even after the pandemic, we could witness a migration out of expensive areas like the Bay Area to more affordable, attractive options like Dallas.
Real estate demand in Dallas is high and will only intensify in the coming years. This is partly why the city’s average home price rose more than 80% since the 2009 recession. If these numbers continue as they are projected to, investing in Dallas real estate today will promise lucrative returns farther down the line.
The Dallas Job Market
America’s job market has had a rough year, but some trades have escaped the brunt of the struggle. Industries like airline, hospitality, and live entertainment have been hit hard, whereas telecommunications, finance, and military contracting have not only remained steady but expanded as well.
Dallas is a hub of aerospace, energy, transportation, and other technological industries—all of which have shown the highest signs of growth in 2020. Since 2014, 15 major tech companies have moved to the area, and some of the biggest employers in the city include AT&T, Pinnacle Group, and Oracle.
This shift of interest from Silicon Valley to the Dallas-Fort Worth Area created a cascading effect, attracting other tech startups to locate their headquarters in the city. A nearby leader in military aviation innovation, the Naval Air Station Fort Worth, has increased in size and employment opportunities as well.
With a robust job market that remains strong during the pandemic and only shows signs of growing, real estate in the area has been exploding in response. Millennials settling into long careers are flocking to the region to rent and purchase their first home, and construction contractors are struggling to keep up. 36% of the city’s residences have a bachelor’s degree or higher, and even more are working higher-paid jobs, which increases their options for higher-quality real estate.
Investing in Dallas real estate takes full advantage of this exciting trend. Whether you’re looking to rent, flip a home, or sell further down the line, the Dallas Fort-Worth area is one of the safest property investments you can make in the country.
The Renter's Market
An estimated 340 people move to the Dallas Fort-Worth area every day. Some are attracted to the impressive and diverse job market, while others are looking to relocate from coastal cities to enjoy a lower cost of living. Then there are the universities: the nearby University of Texas and UNT collectively have nearly 110,000 students in any given year. A hefty portion of these graduates will be entering the area’s rental market while in school or shortly after.
Owning a condo, free-standing home, or other residential property will provide ample rental opportunities. The average rent in Dallas increased by 4% in the past year, and 42% of households in the area are rented. With no shortage of people looking for a place to live in Dallas, you are guaranteed to continuously have tenants for your property and profit from steadily increasing rent prices.
Quality of Life
Out-of-towners don’t know what they’re missing. Beyond the affordable housing and robust job market, Dallas boasts several other advantages that are sending people and businesses to the region in droves.
For a start, the cost of living in Dallas is roughly 50% less than in coastal cities. Residents enjoy more financial freedom, indulgences, and saving opportunities than their counterparts in New York City and San Francisco.
Local culture is vibrant, with the Dallas Symphony Orchestra, the Downtown Art District, and Texas’s State Fair. Paired with the pro sports teams of the Texas Rangers, Dallas Cowboys, and others, there is a plethora of entertainment to enjoy year-round.
Young families also benefit from the highly-rated grade school education, as Niche.com awards the city with an “A” for public schools in addition to housing and nightlife.
The U.S. News and World Report rated Dallas as among the best 25 places to live in the country, and it’s not hard to see why. From a strong and growing economy to exciting local entertainment, Dallas residents enjoy numerous advantages in the city. Investing in Dallas real estate will not only capitalize on the high quality of life newcomers are seeking but can allow you to indulge in it as well.
No Capital Gains Sales Tax
This last incentive is short, simple, and arguably one of the most important. Property owners don’t have to pay a capital gains sales tax when selling their personal residential real estate in Texas. This makes prospects in Dallas more lucrative. Since this tax can range anywhere from 5-20% of the final sale in other states, your returns here will undoubtedly be higher.
This advantage has not been lost upon the global real estate community. International buyers from Latin America, Asia, and Europe have been investing in the city’s real estate. There is still plenty of opportunity in Dallas, but moving quickly to take advantage of it now is critical for long-term gains on your investment.
If you’re looking for more information on Dallas real estate or Viridian houses for sale, feel free to contact us. Our team would love to show you homes for sale and Grady Niblo estates.