Real Estate Investing Blog

Welcome!  |  Home   
Real Estate Investment Property

Your Premier Source for Turnkey Cash-Flow Investment Property

  "Live Where You Want.  Invest Where it Makes Sense!" ™

Midland TX Housing Market 2019: Rentals, Trends & Investment Outlook

How is The Midland TX Real Estate Market 2019?

Buying real estate in Texas can be a worthy investment opportunity. If you are looking at investing in the Midland TX real estate market in 2019 as a potential investment opportunity, you must read till the end.  Midland is squarely in the middle of “flyover” country in the imaginations of many.

It doesn’t attract the attention Dallas does, thanks to the Dallas Cowboys franchise, hot real estate market and the TV show of the same name. However, Midland shares many of the strengths of other “hotter” Texas real estate markets and few of the weaknesses.

Midland got its name from being the mid-point on trips between El Paso and Fort Worth. Midland, Texas is home to nearly 150,000 people. It is a 20 to 30 minute drive from Odessa, Texas. The Midland-Odessa area is home to roughly 300,000 people.

The city is in the heart of the Permian Basin, a geologic feature that today shapes the local economy. Is Midland, Texas going to be one of the hottest real estate markets for investors in 2019? Let’s take a deep look at the latest Midland housing market trends to come to a conclusion.

Midland TX Real Estate Market

Original Photo via Pixabay

Midland TX Real Estate Market Forecasts 2019 & 2020

The real estate data from Zillow shows that the median home value in Midland is $261,900. Midland home values have gone up 12.9% over the past year and Zillow’s Midland TX real estate market prediction is that the prices will rise 5.3% within the next year.

The median list price per square foot in Midland is $157, which is higher than the Midland Metro average of $156. The median price of homes currently listed in Midland is $334,990.

Here is the Midland, TX real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 5.3% till July 2020.

Midland TX Real Estate Market Forecast

Graph Credits: Zillow.com

Midland TX Housing Market Forecast 2019 – 2021

The Midland TX housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Midland housing market trend prediction is 82%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Midland, TX is 82% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Midland, Texas Real Estate Forecast.

Midland TX Real Estate Market Trends

Let us find out how is Midland TX real estate market doing in 2019. According to Trulia, Midland real estate market trends show a 1% week-over-week rise in average listing price and a 0% rise in median rent per month. Trulia has 742 resale and new homes for sale in Midland, TX, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

Midland TX Real Estate Market Trends

Graph Credits: Trulia.com

Midland Housing Market Statistics

Average Listing Price $350,932 (On Trulia)
Homes For Sale 742
Median Rent Per Month $2,500
Median Household Income $56,964
Home Owners 77%
Single Residents 26%
Median Age 33
College Educated 27%
Transportation 100% people commute by car; 0% commute by public transportation

There are 1,073 homes for sale in Midland, TX ranging from $3.5K to $10.6M on Realtor.com. 78 of which were newly listed within the last week. Additionally, there are 166 Midland rentals for sale, with a range of $625 to $10K per month. As per Realtor.com, in July 2019, the housing market in Midland, TX was a buyer’s market, which means there were roughly more active homes for sale than there were buyers.

Midland TX Housing Market Trends

Graph Credits: Realtor.com

The median list price of homes in Midland, TX was $335K in July 2019, trending up 8.1% year-over-year. The median listing price per square foot was $157. On average, homes in Midland, TX sell after 50 days on the market. The trend for median days on market in Midland, TX is flat since last month, and slightly up since last year.

Midland TX Housing Market Trend

Graph Credits: Realtor.com

The median list price in Midland, TX is $316,950 on Movoto.com. The median list price in Midland went down 11% from July to August. Midland’s home resale inventories is 6, which increased 20 percent since July 2019. The median list price per square foot in Midland is $153. July 2019 was $167. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in August.

Midland TX Home Prices Trends

Graph Credits: Movoto.com

Midland, TX Single Family And Multi-Family Homes

Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

As per the real estate company called Neigborhoodscout.com, the median house price in Midland, TX is  $226,465, which indicates that home prices in Midland are well above the national average for all cities and towns in the United States.  Single-family detached homes are the single most common housing type in Midland, accounting for 67.81% of the city’s housing units.

Three and four bedroom dwellings are the most prevalent building size and type in Midland single-family detached homes. The city has a mixture of owners and renters, with 64.95% owning and 35.05% renting.

Other types of housing that are prevalent in Midland include large apartment complexes, duplexes, homes converted to apartments and a few row houses.

Currently, there are 777 single family homes for sale in Midland, TX on Zillow. Additionally, there are 75 single family homes for rent in Midland, TXUnder potential listings, there are about 5 Foreclosed and 4 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Midland, TX Foreclosures And Bank Owned Homes 2019

As per the Midland foreclosure data by Zillow, the percent of delinquent mortgages in Midland is 1.6%, which is higher than the national value of 1.1%.

Foreclosures in Midland 54
Homes for Sale in Midland 495 (RealtyTrac)
Recently Sold 2,354
Median List Price $339,000 (0% ⇑ vs Jun 2018)

There are currently 54 properties in Midland, TX that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 495. In July 2019, the number of properties that received a foreclosure filing in Midland, TX was 11% higher than the previous month and 43% higher than the same time last year.

Best Places To Buy Midland, TX Rentals

If you are looking to buy Midland rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Midland rental real estate and you should be able flip it for a lump sum profit.

When looking to invest in Midland real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Midland investment property should be low. The neighborhoods in Midland must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 128 neighborhoods in Midland. There are 30 elementary schools, 9 middle schools, 10 high schools and 11 private & charter schools.

Some of the best neighborhoods in Midland, Texas are Wilshire Park, Permian Estates and Wedgewood Park. Grassland Estates West has a median listing price of $698.1K, making it the most expensive neighborhood. Permian Estates is the most affordable neighborhood in Midland, Texas with a median listing price of $179.9K.

Here are the best neighborhoods to invest in Midland rentals because they have the highest appreciation rates (List by Neigborhoodscout.com).

1

 Ranch Rd / State Loop

2

 Thomason Dr / W Illinois Ave

3

 City Center

4

 S Fairgrounds Rd / Cloverdale Rd

5

 N Lamesa Rd / E Front St

6

 W Wall St / S Midland Dr

7

 N Midland Dr / Storey Ave

8

 N Lamesa Rd / E Wadley Ave

9

 Greenwood / Spraberry

10

 N Midland Dr / Cardinal Ln

Should You Invest In Midland TX Rental Real Estate?

Now that you know where Midland is, you probably want to know why we’re recommending it to real estate investors. Is it worth buying a house in Midland, Texas? Investing in real estate is touted as a great way to become wealthy.

Many real estate investors have asked themselves if buying a rental property in Midland, TX is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Midland TX housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Midland but we have collected ten evidence based positive things for those who are keen to invest in the Midland rentals in 2019.

Investing in Midland rentals will fetch you good returns in the long term as the home prices in Midland have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Midland real estate market which can help investors who are keen to buy an investment property in this city.

1. The State’s Landlord Friendly Environment

Texas doesn’t just make it easy to evict someone if they aren’t paying their rent. It also makes it easy to evict someone if they are violating lease conditions.

The state allows you to enter your own agreement on who will pay for repairs, and the rules are relaxed on what security devices must be provided.

Receipts aren’t required unless someone paid rent or for a deposit in cash. There are no laws on required notice before entry. There is no state law requiring a rental license to be a landlord.

2. The Relatively Landlord Friendly Jurisdiction

The state of Texas’ laws may be friendly to landlords, but cites can pass rules that make things tougher for landlords. One such example is Dallas.

Dallas passed more stringent requirements for landlords in 2016. For example, it mandated tougher code inspection even if you owned a rented-out single family home and more stringent air conditioning requirements.

This was driven by the more than 50 percent of residents who are renters. While Midland has a fairly high rental rate, that population has more students than average. That means Midland doesn’t have the same movement to favor renters over landlords.

3. The Favorable Tax Climate

Texas is one of half a dozen states that don’t have a state income tax. Texas makes up for that with relatively high property taxes.

Yet Midland stands out for their low property tax rate. The average Midland home is taxed at a 1.5 percent rate. For comparison, the Dallas property tax rate is nearly 1.9 percent, and in Fort Worth, it is more than 2 percent.

4. The High Midland Rental Rates

The median rent in the state of Texas is roughly a thousand dollars a month. In Midland, it is 1,100 dollars a month. More importantly, rental rates are skyrocketing because of demand. In 2018, rental rates have increased by more than 25 percent.

Occupancy rates are hovering around 96 percent. There are several reasons why the rental rates for the average Midland TX real estate investment property are so high. We’ll address them each in their own section.

5. The Large Student Market

One way to guarantee stable rental income from a Midland TX real estate investment property is to cater to the college crowd. Fortunately, the Midland TX housing market is home to several large schools. Midland College is home to nearly six thousand students.

The University of Texas of the Permian Basin school hosts around seven thousand students. The Midland TX housing market is in commuting distance of schools like Odessa College, home to around six thousand students.

6. Midland’s Energy Sector

The energy sector has two major effects on the Midland TX real estate market. The first is dumping several thousand renters in the Midland TX housing market afraid to buy because the oil jobs may move or disappear.  The second is that the well-paid energy sector workers drive up rental rates, since they can afford to pay more for an apartment or single family home.

This contributed to Midland and Odessa having the most significant year over year rent changes in the country in 2018. For comparison, Dallas saw a 3.2 percent increase while Austin saw 5.6 percent. The oil and gas sector has seen booms and busts, but regulatory changes and advances in technology mean the natural gas sector will go strong for years.

However, Midland has taken steps to diversify its economy so the property values don’t crater if the price of oil and gas fall. One side benefit of the heavy demand for housing in the Midland area is that a mobile home is a decent Midland TX real estate investment.

If you can locate it close to the oil fields, minimizing the commute for workers, you could charge them a thousand dollars a month to stay there.

7. The General Strong Economy

One reason why people are moving to the Midland TX housing market is for the high paying energy jobs. We’ve already addressed that. However, the other reason is for the strong overall job market.

The city is the regional services hub, so you find large hospitals and secondary educational institutions here. Its location has long been a transportation hub, leading to many manufacturers being based here. The unemployment rate in Midland is just over 2 percent, half the national average.

Furthermore, the overall job market provides a median income of nearly 70,000 dollars a year. When someone can make 100,000 working in the Permian Basin, they have to pay truck drivers, fast food workers and office workers that much more to retain them.

8. The Demographic Momentum

The value of a Midland TX real estate investment property is certain to remain stable for one reason – demographic momentum. The average age of Midland residents is 32, eight years younger than the national average.

The area offers a generally low cost of living and good quality of life, and that leads many to start their families here. Conversely, the rest of West Texas barring large cities like El Paso is in decline.

That is in part because their kids are coming to Dallas, Midland and Odessa for school and staying on as adults. All of this contributed to roughly 2 percent annual growth since 2019.

9. The Generally Hot Market

The Midland TX real estate market had a median home price of 262,000 dollars in July, 2019. That is a nearly 13 percent increase over the median price for properties in the Midland TX housing market in 2018.

The average home is expected to increase by 5.3 percent in 2020. This is mostly due to high demand for properties, since there are so many moving here for work.

The only downside is that we can’t say that a Midland TX real estate investment is a relative bargain. The median price for properties in the Midland TX housing market is 40,000 dollars more than the Texas state average.

10. The Opportunity in Affordable Housing

West Texas has generally been poor unless you were in a booming area like the oil fields. Conversely, the boom and bust energy sector put a premium on mobility, since people might move from west Texas to the Bakken formation and back again.

This resulted in a large percentage of the population living in mobile homes while fostering acceptance of it. The cyclical energy economy also left builders reluctant to build single family homes that might be repossessed, whereas trailers could be moved if necessary.

This also gives investors a good way to cater to the affordable housing market. Ironically, the skyrocketing price of single family homes the Midland area has resulted in higher mobile home prices; historically, mobile homes depreciate the same way cars do.

The surge in demand has resulted in the lot prices and rental rates going up fifty percent in the past year or two.

Midland TX Real Estate Investment

Maybe you have done a bit of real estate investing in Midland, Texas but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.

A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Midland real estate investment opportunity would be a key to your success. in If you invest wisely in Midland rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

The less expensive the Midland rentals are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Midland, you should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Midland, TX. Midland, Texas is in the middle of a sustained boom, though it retains its small town charm.

However, that’s leading to double digit increases in rent and property values at all price levels that won’t be stopping any time soon. This makes Midland a great opportunity for investors.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.

They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.

NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

Midland TX Real Estate Investment

The aim of this article was to educate investors who are keen to invest in Midland real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2019

The other best place to invest in real estate is Wenatchee, WA. The Wenatchee real estate market doesn’t offer double digit appreciation or brand name recognition. For example, you can’t say you’re investing in Silicon Valley real estate.

However, the returns are no less than what you can expect is such competitive markets. Despite a nationwide downturn in the housing market, Wenatchee real estate has continued to appreciate year-over-year.

Based on the last twelve months, short-term real estate investors have found good returns in Wenatchee. Wenatchee appreciation rates in the latest quarter were at 1.20%.

Another sizzling market to choose for investment is the Walla Walla real estate market. The Walla Walla housing market doesn’t get the same attention as the suburbs hosting hundreds of thousands of tech workers at firms like Microsoft. However, there are a number of factors that make it an excellent investment opportunity.

One factor driving up Walla Walla real estate prices is the number of retirees moving here. It offers affordable real estate, great weather and excellent amenities for a rural community. That led to it hitting the Forbes list of top 25 places to retire in 2016.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.


*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

About Midland
https://en.wikipedia.org/wiki/Midland,_Texas

Taxes
http://www.tax-rates.org/texas/midland_county_property_tax
https://smartasset.com/taxes/texas-property-tax-calculator

Landlord friendly state
https://www.auction.com/blog/5-landlord-friendly-states-in-2019
https://www.avail.co/education/laws/texas-landlord-tenant-law

Landlord friendly city
https://www.dallasnews.com/news/2016/09/28/dallas-makes-rules-tougher-on-landlords-with-new-housing-standards

Rental rates
https://www.deptofnumbers.com/rent/texas/midland

Energy sector
https://www.mrt.com/news/article/Midland-rents-surge-from-last-year-12891289.php
https://www.mrt.com/news/article/Midland-leads-nation-in-percentage-rent-increase-13598139.php

Appreciation
https://www.zillow.com/midland-tx/home-values
https://www.mrt.com/news/article/Median-home-price-in-Midland-outpaces-region-12184090.php

The strong economy
https://www.wsj.com/articles/in-this-oil-boom-town-even-a-barber-can-make-180-000-11551436210

Demographic momentum
https://www.bestplaces.net/city/texas/midland

Student market
https://www.collegesimply.com/colleges-near/texas/midland

Mobile homes / Affordable housing
https://www.cbs7.com/content/news/Increased-rent-prices-affect-mobile-home-parks-481438671.html
https://www.bbc.com/news/magazine-24135022

Housing Market Data, Trends & Statistics
https://www.zillow.com/midland-tx/home-values
https://www.trulia.com/real_estate/Midland-Texas
https://www.realtor.com/realestateandhomes-search/Midland_TX/overview
https://www.movoto.com/midland-tx/market-trends
https://www.neighborhoodscout.com/tx/midland/real-estate
https://www.realtytrac.com/statsandtrends/tx/midland-county/midland


Add Your Comment: