According to Forbes, Dallas, Texas tops all other cities for real estate investing in 2017. The ranking was based on six key housing components, including: past and projected job growth, costs of living, business-based tax benefits, income growth, and projected economic growth. In the article, Forbes ranked Dallas as the top real estate market, primarily because “prices here are expected to grow the most” as a result of a 6.2% three-year population growth, 3.9% job gains last year and 9% annual home price gains.
With a 25% population increase since 2000, Dallas is among the fastest-growing metro areas in the U.S. and remains the top real estate market for investors today. Cities at the top of the list all share common traits like job growth, population growth and economic expansion, but Dallas’ continued growth has been accredited to its low-cost, pro-business regulatory environment for employers, developers and real estate investors.
In 2016, Dallas real estate investors earned as much as 20% in unleveraged returns for residential real estate investments, before expenses. Based on these economic factors, the single-family housing experts at the Local Market Monitor are forecasting prices to increase by 31% by 2020. This forecast confirms Forbes confidence in the Dallas housing sector as the top real estate market for 2017.
Single-family home prices are up 8.9% from a year ago, reaching an all-time high of more than $233,000. And although home prices have risen for 19 consecutive quarters, single-family homes remain affordable in the DFW metro area, indicating that further price gains are justifiable.
Dallas continues to have one of the fastest growing pre-owned markets in the country, with prices up 24% in some areas. Renters and buyers from other states and countries have flocked to Dallas, in part due to the absence of state property tax and personal & corporate income tax. For these reasons and more, investors are able to keep a larger slice of the pie and capitalize on reinvesting back into the economy. According to Ingo Wizner, CEO of Local Market Monitor, if you’re “planning on making an investment, either by buying a home or by buying a rental property, these are really good markets.
At Derkache Investment we are heavily entrenched in the Dallas real estate market, offering domestic and overseas investors a comprehensive platform to purchase Class A single-family homes with ease and confidence. As the single-family home rental market evolves from a “fix and flip” mentality to a buy and hold strategy, we continue to streamline the process that allows our clients to invest in their long-term future with our top tier professionally managed investment properties.
Whether you’re a beginner investor looking to finance your first investment, an experienced investor hoping to diversify your retirement nest egg, or an overseas investor entering the U.S. market, Derckache Investments has the team to meet all of your needs.