As an investor, you want to make sure you buy property in an area that’s going to give you the best ROI—and be a profitable investment for years to come.
There are plenty of factors to take into consideration when choosing where to invest, from home values to rental prices to inventory. But if you want the best of all worlds in 2019, you should definitely consider investing in the DFW Real Estate Investment Market.
Why is the DFW area such an in-demand location for investors? Let’s take a look at a few reasons DFW should be at the top of your list of places to invest in 2019.
The Dallas-Fort Worth Market At A Glance
Before we jump into why you should invest in the DFW real estate investment market in 2019, let’s take a look at this past year’s market.
2018 was a fantastic year for owning investment properties in the Dallas Fort Worth area. According to research from Zillow, home prices in the Dallas area grew 12.3% from October 2017 to October 2018 while home prices in the Fort Worth area grew 9.1%. And rental prices in the DFW area saw moderate increases, particularly on two-bedroom residences.
Home values are projected to grow another 10.6% in Dallas in 2019 and 9.1% in Fort Worth—so if you invest now, the properties you purchase should appreciate significantly in 2019.
So last year was a great year in terms of increasing home values and rental ROIs—and next year is gearing up to be more of the same.
Home values are projected to grow another 10.6% in Dallas in 2019 and 9.1% in Fort Worth—so if you invest now, the properties you purchase should appreciate significantly in 2019. And because mortgage interest rates are on the rise, real estate experts are predicting an increase in rentership across the DFW area—which will drive up rental prices and make your investment even more profitable in the upcoming year.
Why The DFW Real Estate Investment Market?
Increasing home values—and rising rents—are clearly a solid reason to consider an investment market. But they’re not the only reasons.
Here are a few other reasons that you might want to consider investing in the DFW area in 2019:
Frisco: The Best Place To Live In The US
When you’re buying an investment property, you want to purchase property in a place people want to live—a place with ample job opportunities, an excellent education system, and a high level of safety for residents.
And according to Time Inc’s Money Magazine, you won’t find a place people want to live more than Frisco, TX.
In 2018, Frisco (which is in Collins County, part of the DFW area) was named the #1 best place to live in the US. Money Magazine cited the area’s incomparable public school system (the area has the highest graduation rate of the cities evaluated by the magazine), exploding job growth, and a wide variety of cultural offerings as their reason for choosing the city as the best in the nation—and potential residents are flocking to Frisco in response.
The influx of new residents and the increasing demand are good news for investors; not only will your properties continue to increase in value in the long-term, but the competition in the market can drive up rental prices, giving you a better return on your investment in the short-term.
People want to move where the jobs are. And as far as job opportunities go, there are few areas experience as much growth as Dallas Fort Worth—and, in particular, Collins County.
Collins County has seen a number of major employers (including Toyota, Facebook, and Keller) move into the area in recent years, stimulating the economy, creating new jobs, and attracting a high volume of new residents.
DFW Named Top Real Estate Market To Watch in 2019
There’s a lot of buzz around the Dallas Fort Worth real estate investment market for 2019—and as an investor, it’s buzz you need to be paying attention to.
Pricewaterhousecoopers and Urban Land Institute named the Dallas Fort Worth area the top real estate market to watch in 2019 thanks to its comparatively low prices, stable economy, and projected growth (the population in the Dallas Fort Worth area is expected to grow more than twice the national average in 2019). All of these factors should help to create an even more appealing investor market in the DFW area in the upcoming year.
What Types of Investments Are Performing Well—And Which Are Struggling?
As an investor, it’s not just where you invest—it’s what you invest in. Which is why it’s so important to understand which types of properties are performing well in the DFW area—and which are struggling.
According to data from RentCafe, larger rentals are experiencing the largest increases in value in the DFW. The average rent for a 3-bedroom in Dallas in 2018 was $1432—a 3% increase year-over-year (in comparison to 1-bedrooms, which only grew 1% over the same time period).
On the other end of the spectrum, it seems as though studio rentals have been showing signs of struggle in some areas in DFW, although the losses are minimal. In Fort Worth, the average rental price for a studio apartment was $839—a decrease of 1% year-over-year.
There are still great deals to be had, and as home values and rents continue to increase, the financial opportunity is only going to get better for owners.
However, these decreases aren’t expected to continue into the new year. As increasing mortgage rates drive down affordability, more and more people—especially young people—are going to be renting. And young, single professionals are more likely to rent studios, 1-bedrooms, or 2-bedrooms—so it wouldn’t be unexpected to see those kinds of rentals experience major growth in the upcoming year.
Invest in the DFW Real Estate Investment Market in 2019
The DFW area experienced major growth in 2018—and that growth is expected to continue in the upcoming year. As an investor, it’s an ideal time to make a purchase; there are still great deals to be had, and as home values and rents continue to increase, the financial opportunity is only going to get better for owners.
Have more questions about the current state of the DFW real estate investment market? Want to know more about how things may change for investors in 2019? Get in touch with LEAP today—we can help you find the right property in the right area to maximize your cash flow and make the most of your investment.