Dallas is one of the fastest-growing cities in the country. Over the past seven years, domestic migration exceeded 300,000, according to the U.S. Census Bureau. Annual population growth in North Central Texas is expected to expand at a rate of 2.6 percent through 2030. This expansion equates to “a magnitude of growth never before experienced” in the region, states Vision North Texas. This strong population growth and the region’s diverse economy, are spurring healthy rental demand. In turn, demand for Dallas real estate – among investors and tenants – remains high.
The Metroplex has consistently ranked as one of the top metros for job growth over the past five years. Its diverse economy features education and health services, FIRE (finance, insurance and real estate), technology and back-office operations, among other sectors. D/FW also serves as a major distribution hub, with facilities handling goods from Mexico and Houston.
The education and health services sector was one of the economy’s strongest performers in 2017. Longview-based Everest Rehabilitation Hospital completed a $64 million expansion to its trauma services center that created 130 new jobs. Other firms adding to payrolls included GM Financial, which planned to add 1,300 positions. AT&T invested in an urban live-work-play district that was expected to employ at least 1,200 residents.
Below are the 10 largest employers in Dallas:
- AMR Corp. (American Airlines)
- Bank of America Corp.
- Baylor Health Care System
- City of Dallas
- Dallas Independent School District
- JP Morgan Chase & CO.
- Lockheed Martin Aeronautics Co.
- Texas Health Resources Inc.
- UT-Southwestern Medical Center
As the Economy Strengthens, So Does Rental Demand
What does a growing population and diverse economy mean for real estate investors? It means there’s plenty of rental demand for Dallas real estate. In fact, rents expanded 4.9 percent through year-end 2017 to $1,660 a month. Rents are expected to average about $1,700 per month by the end of 2018. Renters are attracted to an array of cultural attractions, recreational activities and outdoor activities in the Metroplex.
The Dallas Zoo remains one of the most popular attractions, and consistently sets records for annual attendance. The oldest zoological park in Texas, the zoo is home to more than 2,000 animals representing 406 species.
The Kimbell Art Museum in Fort Worth houses art exhibits and artifacts from around the globe. Another popular attraction is the Perot Museum of Nature and Science, a hands-on exhibit with dinosaur skeletons and other educational exhibits, located on North Field Street. Another museum, the JFK Sixth Floor Museum on Elm Street in Dallas, commemorates John F. Kennedy Jr.’s legacy.
Further adding to the metro’s appeal for sports enthusiasts are the six professional teams that call D/FW home, including the beloved Dallas Cowboys of the National Football League (NFL), the successful Dallas Mavericks franchise of the National Basketball Association (NBA), Major League Baseball’s (MLB) Texas Rangers, FC Dallas of Major League Soccer (MLS), the Dallas Stars of the National Hockey League (NHL) and the Dallas Wings of the Women’s National Basketball Association (WNBA).
Dallas Real Estate Investing by the Numbers
The 343-square-mile Metroplex offers an ample inventory of for-sale rental properties. Suburban locations like Mesquite or Arlington provide investors with good appreciation. But act quickly: cap rates, or first-year annual returns, keep dropping in the Metroplex. Cap rates fell 80 basis points to 4.7 percent at the beginning of 2018 on a year-over-year basis, according to HomeUnion Research Services.
Currently on HomeUnion.com, nearly 60 SFRs and multifamily assets are listed for sale. Find one that meets your investment goals today by scheduling a consultation with one of our Solutions Managers at Solutions_Team@homeunion.com. They can help you find Dallas real estate that meets your investment needs.