Norada Real Estate Investments

Archives for November 2022

NYC Housing Market Report: Rent Prices Are Skyrocketting

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Renters should brace themselves for significant increases in rent prices as we enter the second half of the year. Despite the fact that New York City is swiftly adjusting to a new normal in the aftermath of the pandemic, the NYC rental housing market is hampered by historically low inventory levels. Because of the abnormally tight rental market conditions, rents are anticipated to rise more, at least until the seasonal decline in demand for rentals that occurs after the summer.

Despite continuously improving inventory, landlords are racing to reverse the pandemic discounts they provided, forcing rents to rise. Despite a large increase in the number of people leaving the city throughout the pandemic, the number of persons looking for rental homes has remained continuously high. The removal of rental incentives is yet another sign that landlords remain hopeful about demand. Because of the high rents in Manhattan, many people are eager to relocate to the more affordable neighborhoods of Brooklyn and Queens.

According to a report published by New York Post, the average rental price in Manhattan, Brooklyn, and Queens has risen to a new all-time high. Beginning last month, various factors contributed to the excessive rental market in New York, including a lack of availability, rising mortgage rates, peak season, and the Housing Stability Tenant Protection Act, which was enacted in 2019 and enacted expanded tenant eviction protections. Rising Fed interest rates have pushed would-be home purchasers into the rental market, making an already tight market even tighter.

“People who were thinking about moving somewhere else, let’s say in the suburbs, where mortgage rates are 3.1 percent at the end of December, now they are in fives; that is a significant increase,” Jonathan Miller of Miller Samuel who analyzed the findings told The Post. “So those people who were perhaps looking at that as an option might be sitting put. And sitting puts fewer apartments available. So the irony of this Fed move is while it’s cooling the purchase market, it is putting more pressure on the rental market.”

Douglas Elliman, a real estate agency in New York, has released a report analyzing the median rental pricing across the five boroughs, and it does not appear to be slowing down any time soon.

NYC Housing Market – Rental Report

Manhattan

Average rental price: $5,058; Median: $4,050

The median rental price for Manhattan is now at an average of $4,050, which is $800 over what it was just a year ago, according to the eye-opening June market reports compiled by Douglas Elliman and Miller Samuel. Specifically, the average rental price in Manhattan has reached $5,000 for the first time in Big Apple History. The median rent is the mid-point value of the total price samples. Average rent is the sum of all rents divided by the number of the sample size.

NYC housing market report
Source: New York Post composite

The average rental price of $5,058 indicates that a tenant would spend roughly $61,000 annually on housing alone, as the median rent has set a record for the fifth consecutive month. The number of new leases increased for the fifth consecutive month, and the vacancy rate stayed below 2 percent for the seventh consecutive month. The average rent for a studio apartment is $3,145, while a one-bedroom apartment costs $4,278, and a two-bedroom apartment averages $5,722.

Brooklyn

Average rental price: $3,822; Median: $3,300

Average rental prices in Brooklyn reached $3,822 per month, up about $100 from last month’s average. That marks a new high for the borough for the second straight month. According to Elliman's report, the average monthly rent for a studio is now $2,284. A one-bedroom apartment rents for an average of $3,240, while a two-bedroom apartment costs $4,040.

Last year at this time, the median rent was approximately $500 less, or $2,700 per month. Last summer, studio apartments offered an 11.2% discount, one-bedroom apartments offered a 25.3% discount, and two-bedroom apartments offered a 26.8% discount. Since then, prices have increased between 20 and 50%.

Northwest Queens (Long Island City, Astoria, Sunnyside, Jackson Heights)

Average rental price: $3,352; Median: $2,973

Queens is still the most affordable option when it comes to renting, although prices have risen for the second consecutive month. Monthly rental costs averaged $3,352 with a median of $2,973. In comparison, the median rental price in the Northwest section of Queens was $2,700 at this time last year, roughly $300 less than it is today.

The average monthly rent for a studio is approximately $2,782, according to the most recent research by Elliman. A one-bedroom apartment averages slightly over $3,000 per month, while a two-bedroom apartment costs approximately $4,168 per month. For New Yorkers or those hoping to wait it out, you may have to wait a little longer. If rents hit an affordability barrier beyond which they cannot increase, this does not imply that they decrease; rather, it merely indicates that they do not increase.

Source: https://nypost.com/article/where-nyc-real-estate-rental-market-stands-right-now-housing-prices/

Huntsville AL Housing Market: Prices | Trends | Forecast 2022

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Huntsville AL Housing Market REPORT

If you are looking at buying a house in Huntsville AL real estate market as a potential investment opportunity, you must read till the end. Huntsville is the county seat of Madison County and the largest city in Alabama. The 2020 census estimated Huntsville's population at 215,070, which represents a 20% increase over the 2010 census. More than 1.2 million reside in the Huntsville metro area.

The Huntsville Metropolitan Statistical Area is a metropolitan statistical area on the northern border of Alabama. The metro area's principal city is Huntsville and consists of two counties: Limestone and Madison. Huntsville has the nickname “Rocket City” for its close ties to NASA. Huntsville, AL, known as ‘The Rocket City’, has seen some great progress in various areas of the city in recent years. Let us take a look at the market data from various sources so that you can stay up-to-date with trends in the Huntsville AL real estate market.

Huntsville Residential 1st Quarter Report 2022 published by ACRE shows that residential sales for the first quarter of 2022 totaled 1,883 units, representing a decrease of 4.4% when compared to 1,970 units that were sold in the first quarter of 2021. The median selling price in Huntsville for the first quarter of 2022 was $322,314, a 21.8% increase from one year ago.

Huntsville residential units available for sale in the first quarter of 2022 decreased by 4.6% when compared to the same period last year. The quarterly average of inventory for sale divided by the current quarterly sales average equals the # of months of supply which was 0.9 months, down 23.8% YoY.

Huntsville-Madison County Housing Market Trends 2022 (Monthly)

Huntsville area (Madison County) is facing a shortage of housing supply to meet the growing demand. Here are statistics published by the Alabama Center for Real Estate for the month of April 2022.

Median Price: The median sales price in April was $334,700, an increase of 18.3% from one year ago and an increase of 0.5% from March based on 778 home sales. Homes sold in April averaged 8 days on the market (DOM), 5 days faster than April 2021.

Housing Sales: According to ValleyMLS.com, April home sales in the Huntsville area increased 5.1% year-over-year (Y/Y) from 740 to 778 closed transactions. Sales decreased 0.9% from March. Sales are down 1.8% year-to-date.

Inventory: April listings (722) increased 7.4% from March and 40.7% from one year ago. At the current sales pace, all the active inventory on the market would sell in 0.9 months, an increase from 0.7 months in March and up from 0.6 months in April 2021. The equilibrium point where buyers and sellers have roughly equal bargaining power is 6 months of supply.

Forecast: April sales were 26 units, or 3.4%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 752 sales for the month, while actual sales were 778 units. ACRE forecast a total of 2,736 sales in the area year-to-date, while there were 2,661 actual sales through April, a difference of 2.7%.

New Construction: The 235 new homes sold represented 30.2% of all residential sales in the area in April. Total sales increased 7.3% year-over-year. The median sales price in April was $363,900, a decrease of 0.6% from March and an increase of 21.3% from one year ago.

Huntsville Alabama Housing Market Forecast 2022

Appreciation rates for homes in Huntsville have been tracking above average for the last ten years, according to NeighborhoodScout's data. The cumulative appreciation rate over the ten years has been 59.39%, which ranks in the top 50% nationwide. This equates to an annual average Huntsville house appreciation rate of 4.77%.

Looking at just the latest twelve months, Huntsville's appreciation rates continue to be some of the highest in the nation, at 23.79%. Based on the last twelve months, short-term real estate investors have found good fortune in Huntsville. Huntsville appreciation rates in the latest quarter were at 8.63%, which equates to an annual appreciation rate of 39.26%.

The current housing demand: According to Realtor.com, in April 2022, the median listing home price in Madison County, AL was $323.2K, trending up 24.3% year-over-year. The median listing home price per square foot was $154. The median home sold price was $349.5K. Homes in Madison County, AL sold for approximately the asking price on average in April 2022.

There are 16 cities in Madison County where Realtor.com has active listings. Brownsboro has a median listing home price of $596.9K, making it the most expensive city. New Hope is the most affordable city, with a median listing home price of $225K. Huntsville City's median listing price is $315K, trending up 16.7% year-over-year.

According to Zillow.com, the typical home value in Madison County is $303,661. Madison County home values have gone up 20.7% over the past year and 85% over the past decade (since May 2012). Similarly, the typical value of homes in the Huntsville Metro housing market is $295,602, up 26.7% over the past year and 83.6% over the past decade.

Huntsville Alabama Housing Market Forecast
Source: Zillow

Here are some of the best neighborhoods in Huntsville to invest in real estate because they have the highest appreciation rates since 2000 (List by Neigborhoodscout.com).

  1. Twickenham / Old Town
  2. Longwood / Mayfair
  3. Five Points
  4. Downtown Huntsville
  5. Mountain Brook
  6. West Huntsville
  7. Darwin Downs / Oak Park
  8. Fleming Meadows
  9. Terry Heights

Huntsville Real Estate Investment Overview

Investing in real estate is touted as a great way to become wealthy. Is Huntsville rental property good for investment? Planning to invest in the Huntsville, AL real estate market? Many real estate investors have asked themselves if buying a property in Huntsville is a 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 Huntsville housing market forecast for answers on why to put resources into this sizzling market. According to Homefacts statistics, there are 46 public schools in Huntsville with an average Homefacts rating of B-. The total crime rate for Huntsville is high, and there are 215 registered sex offenders residing in the city. Here are the top reasons to invest in Huntsville real estate.

Demographic Momentum

A housing market is stable if the population is stable in both numbers and buying power. Its long-term outlook depends on birth rates, death rates, and migration rates. If young people are leaving for work, then in a few years, the housing market will start to decline. If people are moving into the area because of work, the housing market will see stronger growth unless the housing supply is growing just as quickly.

Huntsville has a population several years younger than average, and a disproportionate number of households here have children. Given the area’s strong economy, they’re seeing people move in for work and their children staying. That alone bolsters the Huntsville Al real estate market long-term.

The Strong Economy

Huntsville’s strong economy also explains why Huntsville’s population growth has been growing about 5% between 2010 and 2015 while the nation as a whole only grew by 3.2%. Huntsville’s unemployment rate is less than 4%, more than a quarter less than Birmingham’s unemployment rate. During the Great Recession that only ended around 2016, Huntsville was an even better place to be. At the height of the Obama Recession, unemployment in Huntsville hit 9% but was 14% in Birmingham.

According to a study by Stessa, a leading real estate technology service provider, the Huntsville metro area led all U.S. metros in the rate of economic recovery for 2021. Huntsville’s 2.2% unemployment rate, strong employment growth, and steady home sales and building permits landed the community at the top of the list. The study showed that communities with strong employment growth and home sales are driving economic recovery.

Huntsville’s total employment has already returned to pre-Covid levels where the U.S. as a whole is still behind. Huntsville’s population grew over 2% from 2019 to 2020, one of the highest growth rates in the country, fueled by companies adding new jobs and opportunities to the local community.

The Sheer Affordability

Housing affordability may seem like a reason not to invest in Huntsville Al housing. After all, why invest if many can afford to buy? In reality, about 20% of those living in the Huntsville Al real estate market are renting. This is a mix of military personnel, students, and those who cannot afford these relatively affordable homes.

The typical home in Huntsville Metro costs around $295K. Homes cost around $150 per square foot, so a small starter home could cost significantly less. An investor could buy multiple affordable homes to rent out for the price of a median home in a West coast city.

“Rocket City” has long been home to a large high-tech workforce. This has created a demand for luxury homes catering to them. Alabama’s most expensive zip code isn’t a tony neighborhood in Birmingham. No, it is 35213, the community of Mountain Brook. The median home in this community is worth just under half a million dollars.

Yes, that’s rivaling a small condo in New York or a modest single-family home in California, but it is incredibly expensive in a community where the median household income is less than $50,000. This opens up the door to “affordable” luxury home investing, whether buying and flipping or buying to rent out to young executives only planning on staying for a year or two.

The Landlord-Friendly Climate

One perk of the Huntsville Al real estate market is how landlord-friendly the area is. The return on your investment in the Huntsville Al housing market suffers if tenants don’t pay the rent for months and you face a costly battle to evict them. Security deposits are limited to one month rent, but if they have pets, there is no limit on the add-on security deposit for pet damage. There aren’t limits on late fees, though if challenged in court, you’ll lose if they are unreasonable.

Notice to terminate the lease is generally 30 days. If the landlord doesn’t offer to renew the lease, the tenant is legally required to leave. There is a process for eviction that requires at least 17 days but likely longer. If someone violates the terms of the lease, they are limited to four “corrections” after which they can be evicted.

Huntsville's Big Rental Market

Any real estate market with a large number of enlisted personnel is going to be home to many renters since military personnel doesn’t want to become long-distance landlords. Redstone Arsenal located just outside of Huntsville has been home to several departments simultaneously such as the Marshall Flight Center, the Missile Defense Agency, the Army’s Missile Command, and a logistics wing.

That meant there were roughly 2000 permanently stationed personnel and ten times that many civilian contractors working at the site. The Defense Base Realignment and Closure Commission has moved some of these functions elsewhere, such as the ordinance school hosted here for a century moving to Fort Lee in Virginia.

Other functions, such as NASA’s Space Flight Center and Missile Defense wing, remained. This means that the number of military and military contracting jobs has declined but has not gone away. It creates an excellent permanent class of renters for those investing in Huntsville Al housing.

A university is a goldmine for real estate investors since students always rent. There are twelve colleges within fifty miles of Huntsville, Alabama. Alabama A&M, J F Drake State Technical College, and the University of Alabama at Huntsville are located in Huntsville proper. The University of Alabama at Huntsville campus alone puts several thousand renters in the Huntsville Al real estate market.

The average rent for apartments in Huntsville, AL, is between $609 and $1,079 in 2022. For a studio apartment in Huntsville, AL, the average rent is $609. When it comes to 1-bedroom apartments, the average rent in Huntsville, AL, is $887. For a 2-bedroom apartment, the average rent is $1,065. The average rent for a 3-bedroom apartment in Huntsville, AL, is $1,079.

When you factor in the premium charged for the privacy and space you get when renting a home, landlords charge much higher monthly rents for detached single-family homes. When combined with the relatively low price you can pay for properties, this yields a decent return on the investment unless you pay too much at the beginning.

The Growing Technology Research Sector In Huntsville

Huntsville’s early support for the space program resulted in a technology and research park here. Huntsville now has the second largest tech and research park in the United States. This attracts well-paid talent from around the world. Those relocating here for work tend to rent rather than buy since they may go somewhere else in a few years.

Others choose to rent for a while until they find the right home to buy. These high-paying jobs also keep home values high in the Huntsville Al real estate market. Huntsville has leveraged its significant technology base to cultivate a biotech industry. For example, the HudsonAlpha Institute for Biotechnology is but one biotech research facility in the four thousand acres Cummings Research Park.

This research hub rivals Research Triangle Park in North Carolina. It is R&D centers like that that explain why Huntsville has such a well-educated, well-paid population. And given how many researchers move to follow the grants or upgrade their careers, many rent homes instead of buying them. Whether renting or buying, these high-paying biotech workers keep property values and rents high in the Huntsville Al real estate market.

Conclusion

If you invest wisely in Huntsville real estate, you could secure your future. Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population 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. The Huntsville AL real estate market is a solid market with long-term potential that any investor could take advantage of.

How Is Huntsville Real Estate Investment?
  • Ranked #1 for U.S. Employment Growth (Moody's)
  • Newly rehabbed properties with tenants.
  • Top 3 best performing U.S. cities. (Milken)
  • One of the nation's most affordable cities.
  • A leading hotbed for high tech growth.
  • Top 10 most attractive metro for business
  • 1-Year appreciation forecast of 10-15%.

Buying an investment property is different from buying an owner-occupied home. Our Huntsville investment properties are designed to make money as rentals, which means you must look at it solely as an income-producing entity just like any other business. These are “Turnkey Cash Flow Investment Properties” located in some of the best neighborhoods of Huntsville.

We can help you succeed by minimizing risk and maximizing profitability. You can contact us for a “Free Strategy Session” by clicking here.

Another housing market in Alabama to go for diversifying your investments is the Birmingham Al real estate market. Birmingham, AL remains among the most affordable markets in the nation, which bodes well for homeowners, investors, and renters alike. The median home in Birmingham, Alabama is around $277K. Birmingham AL real estate values are going up.

Similarly, Montgomery, Alabama is another great market for investing in real estate. Montgomery Alabama Real Estate Market is a strong cash-flow market due to strong demand for rental housing. And this is not entirely due to the 8 colleges and universities in the city. Montgomery has seen the job market increase by 1.1% over the last year. Future job growth over the next ten years is predicted to be 30.3%. With affordable home prices, lower taxes, and a low cost of living, Montgomery is a great city to live and invest in real estate

Let us know which real estate markets you consider best for real estate investing!

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

Market Data & Trends
https://acre.culverhouse.ua.edu/
https://www.zillow.com/huntsville-al/home-values/
https://acre.culverhouse.ua.edu/category/statewide/huntsville-madison-county/
https://www.realtor.com/realestateandhomes-search/Huntsville_AL/overview
https://www.rent.com/alabama/huntsville-apartments/rent-trends
https://www.homefacts.com/city/Alabama/Madison-County/Huntsville.html
https://www.neighborhoodscout.com/al/huntsville/real-estate

Economy & Population growth
https://hsvchamber.org/huntsville-leads-the-u-s-in-2021-economic-growth/
https://www.towncharts.com/Alabama/Demographics/Huntsville-city-AL-Demographics-data.html

Hidden luxury market
https://www.al.com/news/index.ssf/2016/03/how_much_it_costs_to_buy_a_hou_1.html

Landlord Friendly
https://sparkrental.com/alabama-landlord-tenant-law-summary-quick-reference
https://www.alabamalegalhelp.org/resource/alabamas-landlord-tenant-law-is-changing

Universities
https://www.collegesimply.com/colleges-near/alabama/huntsville/

Grand Rapids Housing Market: Prices | Trends | Forecasts 2022

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Grand Rapids Housing Market Update

Housing prices are moving up in value throughout Grand Rapids, MI. If you are looking at buying a house in Grand Rapids as a potential investment opportunity, you must read it till the end. Grand Rapids in Michigan is home to around 200,000 people. That makes it the second largest city in the state and the largest on the west side of the state. However, the Grand Rapids housing market includes the larger metro area that is home to around a million people.

The Grand Rapids-Wyoming metro area includes Kent County, Barry County, Montcalm County, and Ottawa County. Let's take a look at some of the real estate market data and trends in Grand Rapids, MI. Grand Rapids is the fastest-growing community in Michigan. The main factors are affordability, employment growth, and low vacancy rates. It was ranked as the top housing market nationwide by Trulia in the same study in 2017.

Single-family detached homes are the most prevalent housing type in Grand Rapids, comprising 58.47 percent of the city's dwellings. Also prominent in Grand Rapids are big apartment complexes or high-rise apartments (19.98 percent), duplexes, homes converted into apartments or other small apartment buildings (16.34 percent), and a few row houses and other connected residences (4.80 percent), according to NeighborhoodScout.

  • Average Rent: $1,347 / per month
  • Grand Rapids Per Capita Income = $26,556
  • Median Household Income = $51,333
  • Total Population: 198,917
  • Owners = 52%
  • Renters = 48%
  • Vacancy = 6.5%
  • Single-Family Home = 58.47%
  • Townhomes = 4.8%
  • Apt. Complexes = 20%

Creston, West Grand, and South East End are some of the greatest neighborhoods in and surrounding Grand Rapids, Michigan. Consider purchasing or renting a house in one of these desirable communities. In April 2022, the median listing price of a property in Grand Rapids, Michigan was $239,900, an increase of 15.3% year-over-year.

The median asking price per square foot for homes was $148. Realtor.com currently features active properties in 28 Grand Rapids neighborhoods. With a median listing price of $437K, Downtown Grand Rapids is the most expensive neighborhood. The most inexpensive neighborhood is Madison Area, with a median listing price of $185K.

Grand Rapids Housing Market Forecast 2022-2023

Grand Rapids is poised to attract people and have strong demand for housing in the market. Investing in Grand Rapids rental property can yield a favorable return on investment. Grand Rapids has enjoyed some of the greatest home appreciation rates in the nation over the past decade. Grand Rapids real estate rose 139.23 percent during the past ten years, which equates to an average annual home appreciation rate of 9.11 percent and places the city in the top 10 percent nationally for real estate appreciation.

  • Considering only the most recent twelve months, Grand Rapids appreciation rates were at 21.91 percent.
  • It is more than 79.97 percent of the nation's cities and towns.
  • The most recent quarter's Grand Rapids appreciation rates were 7.51 percent,
  • It amounts to an annual appreciation rate of 33.58 percent.

The typical value of homes in Grand Rapids is $262,987 (ZHVI). Grand Rapids home values have gone up 17.7% over the past year and 191.5% over the past decade. The MSA comprises four counties which include the central county of Kent, and the outlying counties of Ionia, Montcalm, and Ottawa.

  • The typical home value of homes in Grand Rapids-Wyoming Metro (49514) is $307,743, up 18.5% over the past year.
  • Zillow predicts that Grand Rapids-Wyoming Metro home values may rise by 10.5% by May 2023 (ZHVF).
  • Wyoming home values have gone up 20.3% over the past year and are currently holding at $247,893.
  • Kent County home values have gone up 17.6% over the past year and are currently holding at $308,077.
  • Ionia County home values have gone up 18.2% over the past year and are currently holding at $212,628.
  • Ottawa County home values have gone up 22.6% over the past year and are currently holding at $341,015.
  • Montcalm County home values have gone up 13.9% over the past year and are currently holding at $192,832.
Grand Rapids Real Estate Market Forecast
Graph Credits: Zillow.com

Highest Appreciating Grand Rapids Neighborhoods Since 2000: By Neigborhoodscout.com

These are the best neighborhoods in Grand Rapids for long-term real estate investment because they have the highest appreciation rates.

  • Midtown
  • Heritage Hill South
  • Belknap Lookout
  • Heartside
  • South Hills
  • Ottawa Hills
  • East Hills
  • Eastown / Aquinas College
  • West Grand South
  • Creston Heights

Grand Rapids Real Estate Investment Overview

If you are looking at buying a house in Grand Rapids as a potential investment opportunity, the city is one of the strongest in the state in terms of continual property value. Grand Rapids housing market is a relatively affordable place to invest. In May 2022, Grand Rapids home prices were up 15.8% compared to last year, selling for a median price of $275K (source: Redfin). On average, homes in Grand Rapids sell after 6 days on the market compared to 6 days last year. That is well below the national average.

Yet demand is such that property values are increasing. The steady demand for properties will keep the prices for homes in the Grand Rapids real estate marketing growing at least at the rate of inflation for the foreseeable future. This is excellent news since it protects the value of your investment. Here are some of the reasons to invest in Grand Rapids real estate.

The Relatively Strong Local Economy Propels Growth

The unemployment rate in Grand Rapids is less than 5%. As of April 2022, Grand Rapids, MI Unemployment Rate is at 4.20%, compared to 4.30% last month and 6.60% last year. This is lower than the long-term average of 7.45%. The low unemployment rate attracts people from across the area, fueling demand for Grand Rapids rental homes. Why is Grand Rapids growing? It is home to a large medical sector, an industry that grows as the population ages. The city has always had manufacturing, but they’ve been somewhat diversified. There were multiple major furniture manufacturers, colleges, and brewers in the area, but the city leaders sought to attract other businesses, as well.

The Student Market That Is Sure to Grow

Any city with a large university will have a strong rental market catering to students, and the Grand Rapids real estate market has that due to schools like Aquinas College, Grand Rapids Community College, Calvin College, Davenport University, and Cornerstone University. However, they build upon it with the MSU medical school that relocated here in 2017 and the multiple affiliated research facilities.

If you want to rent to students in the Grand Rapids real estate market, you can also look to the suburbs and house students from the massive Grand Valley State University campus; which has over twenty thousand students. Grand Rapids is a great place for investing in Airbnb rentals as well. There aren’t any strict Airbnb regulations set as yet. Anyone who wishes to rent out a room or property on Airbnb in Grand Rapids must receive a license from the city.

Healthy Demographic Trends Keep It Going

Detroit was once the fifth largest city in the United States. It has fallen to 20th place with fewer than 700,000 people. In comparison, Grand Rapids is gaining population. Grand Rapids has a 2020 population of 203,644. It is also the county seat of Kent County. Grand Rapids is currently growing at a rate of 0.43% annually and its population has increased by 8.32% since the most recent census, which recorded a population of 188,007 in 2010.

Grand Rapids is expanding and is consistently regarded as having one of the nation's best and fastest-growing economies. The development of the downtown area is keeping pace with this increase. This means that the Grand Rapids housing market would be seeing increasing demand for property and increasing rental rates. The Grand Rapids area has a strong economy and a younger than the average population.

It is seeing many residents choose to trust in the future and have children. This explains why two-thirds of its growth is due to births, not migration. This is partially due to people moving from areas lacking jobs hitting the stronger Grand Rapids economy before choosing to have those kids they always wanted. This will fuel demand for the Grand Rapids real estate market for years.

There Is Room for Rental Rates to Grow

The Grand Rapids housing market is notable for the relatively large share of homeowners. About a third of Americans rent, whereas only a quarter of locals does. This creates strong demand for the rentals that do exist by those who cannot or will not buy a house. It also limits turnover among long-term residents. In contrast, the rapid abandonment of other Rust Belt cities allows home buyers to have their pick of properties.

As of June 25, 2022, the average rent for a 1-bedroom apartment in Grand Rapids, MI is currently $1,300. This is a 13% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Grand Rapids remained flat. The average rent for a 1-bedroom apartment increased by 2% to $1,300, and the average rent for a 2-bedroom apartment remained flat. This shows Grand Rapids rental properties are downright affordable. Grand Rapids also provides a lower cost of living than much of the rest of Michigan.

  • The average rent for a 2-bedroom apartment in Grand Rapids, MI is currently $1,400. This is a 10% increase compared to the previous year.
  • The average rent for a 3-bedroom apartment in Grand Rapids, MI is currently $1,695. This is a 17% increase compared to the previous year.
  • The average rent for a 4-bedroom apartment in Grand Rapids, MI is currently $1,995. This is a 10% increase compared to the previous year.

Relatively Low Property Tax

Located in western Michigan, Kent County contains the city of Grand Rapids and has property tax rates lower than many of Michigan’s other urban counties. Kent County’s average effective tax rate is 1.51%. At that rate, a homeowner with a home worth $150,000, about the median home value in the county, would pay $2,265 annually in property taxes.

Conclusion

Detroit may have once been the poster child for Michigan, the truth today is that Grand Rapids is leading the way. Its diverse, growing economy is fostering a steadily increasing population and a strong housing market that are one of the best in the country for mid-sized cities. Different neighborhoods of Grand Rapids, MI have different aspects at play but for the most part, you can have a quality house to rent out. And if you decide to flip it in the future, you are likely going to get a favorable return on investment with the property you purchase, no matter the location in the city.

Buying an investment property is different from buying an owner-occupied home. The investment properties are designed to make money as rentals, which means you must look at it solely as an income-producing entity just like any other business. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities.

Apart from the Grand Rapids real estate market, you can also invest in El Paso, Texas. El Paso real estate is affordable with several large renter populations. Demographic growth and job growth are attracting residents to a market that can’t grow with demand, and that makes it an excellent opportunity for investors. El Paso is notable for its affordable real estate market. The average pay is well below the American average income, but houses are cheaper, too.

Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill out the form 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

  • https://www.zillow.com/grandrapids-mi/home-values                                           
  • https://www.neighborhoodscout.com/mi/grand-rapids/real-estate         
  • https://www.redfin.com/city/8694/MI/Grand-Rapids/housing-market                  
  • https://www.realtor.com/realestateandhomes-search/Grand-Rapids_MI/overview     
  • https://www.experiencegr.com/meetings-blog/post/grand-rapids-is-growing-and-people-are-noticing
  • https://www.mlive.com/news/index.ssf/2018/05/detroits_population_still_fall.html
  • https://realestate.usnews.com/places/michigan/grand-rapids
  • http://www.city-data.com/city/Grand-Rapids-Michigan.html
  • http://humanmedicine.msu.edu/
  • https://www.collegesimply.com/colleges-near/michigan/grand-rapids

Should You Invest In The Houston Real Estate Market?

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It's no more an unknown thing for a savvy real estate investor to know that Houston, Texas is a beautiful place to live and raise a family. Houston, with a fascinating history, is considered to be one of the most desirable locations to invest in real estate in the country and the whole world at large. The Houston real estate market is becoming one of the favorite destinations for those looking for a beautiful home. In case you are thinking about investing in Houston real estate, as an investor, it is only logical to consider the booming cities in the country.

As someone who is looking to invest in real estate in 2022, I will advise you to consider investing in the Houston real estate market because this city is one of the good examples of a booming housing market. It provides a healthy and secured real estate profile for local and even foreign investors. Houston has everything: the people, the diversity, the business climate, and a world-renowned in energy, medicine, space, and manufacturing. So, if you are of one the investors looking to invest in the Houston housing market, then you are on the right track as a savvy investor. The Houston housing market offers plenty of choices and also amazing prices for properties and it is a good time to invest in Houston.

Why Should You Invest In Houston Real Estate?
  • Houston is the #1 Market in the US for Job Creation.
  • It is the 4th largest city in the US, trailing only New York, Los Angeles, and Chicago.
  • 1-year real estate appreciation forecast of 9-10%.
  • Houston ranks third in the nation in overall population growth.
  • Metro Houston saw the third-largest increase in population growth in the U.S. for the year that ended June 30, 2020, according to the latest data from the Census Bureau.
  • The new figures put the metro area’s population over 7.1 million residents.
  • Houston's economy looks strong in many sectors.

Top Reasons To Invest In The Houston Real Estate Market

houston real estate investment

In this article, we will look at the top reasons that make Houston a great place for real estate investment.

1. Rapid Population Growth

Greater Houston is the most diverse, rapidly growing major U.S. metropolitan area, and immigration has contributed greatly to its growth and diversity. It has a population of over 7 million people. Houston is the largest city in the state of Texas, and also it is the 4th most populous city in America.

Since 2010, the Houston area has added nearly 1.1 million residents. Houston’s population should exceed 7.1 million by the end of the decade. Major population growth is seen in Brazoria, Fort Bend, Harris, and Montgomery counties. State demographers estimate that Texas’ population will double to more than 54 million people by 2050 and a lot of it will be concentrated in the big metropolises including Houston.

Underpinning this growth is the economic strength of the area. Immigrants make up approximately one-third of workers in Greater Houston. It is a popular city in the US with thriving business culture, fashion, sport, research, technology, education, and many other things. Houston is also the city with the fourth-tallest skyline in the US.

All these amazing factors make Houston accommodate millions of tourists and visitors every year and which simultaneously allow Houston's real estate market to boom. Real estate prices fluctuate due to a number of factors, but none more so than population growth. Net population creates demand for housing and without a new supply of properties, it pushes up the prices for both renting and purchasing.

In Houston, there is approximately 24% less inventory now versus last year. Houston home values have been rising at a steady rate. With the houisng in short supply, it has driven up home prices, even amidst a pandemic and the subsequent economic slowdown. This is the first reason to invest in the Houston real estate market.

2. Houston Real Estate Market Is Still Developing

Houston has a lot of room to grow and develop unlike the fully built city like New York, San Francisco, Washington, etc. Houston has a low-density sprawl which is fantastic, and this means that there are still spaces within the city for the construction of residential housing. Many inner-city neighborhoods still have spaces either abandoned or vacant, and these land spaces can be used for building houses.

Investing in Houston real estate is a perfect idea because there is a lot of variety of investment properties available to investors. Houston has an extremely good business infrastructure and residential housing costs provide an operating cost advantage to prospective investors.

There are many acres of land available, and there is a lot of movement going on in the real estate sector in Houston which makes it an ideal real estate market where investors can easily find old and new properties in the market. Whatever type of real estate investing you want to do, you can easily find a lot of investment properties that offer investors a strong opportunity to generate passive monthly income.  This is another good reason to invest in the Houston housing market.

3. Strong Economy and Job Growth

When the economy and job growth are strong, the real estate market does well. So weak job growth means a lousy housing market, and vice versa, right? The Houston region is one of the most important industrial bases in the world and ranks No. 2 in manufacturing GDP in the U.S. It has the largest medical complex in the world, the Texas Medical Center, which provides clinical health care, research, and education at its 58 institutions.

Houston has more than 1,760 life sciences and biotechnology companies, cutting-edge hospitals, health facilities, and research institutions. Houston is the U.S. energy headquarters and a world center for virtually every segment of the oil and gas industry from exploration and production to marketing and technology.

Houston is home to 6,400 manufacturers who employ more than 240,000 skilled workers and produce $80 billion in goods annually. You can visit Houston.org for more info information on Houston's top industries. Big companies want to have their centers set up in Houston. Recently Amazon chose Houston to call home. This decision has the potential to bring an entirely new industry to Space City.

A one-million-square-foot distribution center has been built near the intersection of Highway 90 and Woods Road, just off I-10 West. The center is said to eventually provide 1,000 new jobs in the area. This will give a great boost to Houston's economy and real estate sector as well. According to Greater Houston Partnership, Greater Houston shed more than 350,000 jobs in March and April this year due to the pandemic. So far, it has recouped about half of those.

It needs another 174,000 to return to its pre-pandemic employment level. Metro Houston's employment will continue to pull itself back up to pre-Covid levels through the end of 2022, according to an economic forecast released by the Greater Houston Partnership (GHP). The newly released GHP forecast calls for the Houston region to add 75,500 jobs during 2022. These are jobs still left to be recouped from the pandemic's devastation last year, so Houston could end 2022 at or just shy of the region's pre-Covid employment levels.

Houston's employment growth this year will be supported by additions in a number of key industries, including administrative support and waste management; professional, scientific, and technical services; health care and social assistance; restaurants and bars; and government jobs, a large proportion of which are positions with public schools Retail trade jobs, which saw significant declines last year, are expected to grow by 2,000 positions in 2022. Retailers are seeing sales now exceed their pre-pandemic levels, bolstered by pent-up demand from Covid-weary consumers, according to the forecast.

All these factors make a good reason to invest in the Houston housing market in 2022. Demand for all types of real estate increases with the number of local jobs. Additions to the local labor force tend to drive rents and prices upon rental properties in the vicinity and results in local construction of homes and apartments.

4. Booming International Trade

Another reason why investors need to invest in the Houston housing market is that of the booming and expanding trade. The economy of Houston is based primarily on the energy industry, particularly oil. However, health care, biomedical research, and aerospace also constitute large sectors. One of the reasons why people migrate to a certain place is international trade and ease of business, and Houston has the largest US port regarding total cargo tonnage handled.

Even for the waterborne tonnage, makes it the busiest port in the US when it comes to foreign trade. The port in Houston employs lots of workers, and this port also attracts numerous business people, and travelers from around the world every year and all these people need a place to stay in either temporary or permanent housing. This is where real estate investors come in! You can easily rent out a property or even sell to foreigners who are always in Houston for business. What more do you need to think of before deciding to invest in Houston?

5. Education & Quality of Life

Quality of life and employment opportunities are the economic motivation leading household heads to migrate from one region to another. It is important to assess the quality of life by evaluating the economic, social, and environmental indicators related to the quality of life. Houston, Texas is considered among the top cities with a free business environment. According to Teleport.org's city rankings, Houston is a good place to live with high ratings in startups, healthcare, and leisure & culture. Its economy and education also get a high-quality score.

Safety is still an issue. Safety.com named Houston, Texas, among the top five “surprisingly dangerous big cities in America,” noting that although more than half of Americans perceive Houston as being safe, Houston’s rates of both assault and vehicle theft are actually quite high, while reported rape rates are considered “middle of the line.

It’s worth noting, however, that most of Houston’s dangers are confined to the bad areas of Houston, so it’s important to know which Houston neighborhoods to avoid when considering investing in real estate. Some of the city’s safest neighborhoods, include Far Northeast, Pasadena, and Midtown, as well as the suburbs of Sugar Land, Spring Valley Village, and Friendswood.

Education is one of the major elements of quality of life. Many economists and educators favor public support for education on the premise that education improves the overall quality of life of citizens. Educational opportunities play a key role in Houston's quality of life. Houston is a city that is rich in distinguished schools, universities, and colleges. The Houston Independent School District, the biggest in the Houston region, serves 213 square miles with 288 schools, 13,000 educators, and over 210,000 students. It is one of Houston's biggest business ventures.

Houston boasts more than 40 colleges, universities, and institutions – offering higher education options to suit all interests. The Greater Houston area has 14 major institutions of higher learning. For the fifth straight year, Baylor College of Medicine has been recognized by Healthiest Employers LLC and the American Heart Association for its outstanding health and well-being initiative, BCM BeWell.

Baylor St. Luke’s has been recognized as a Best Hospital for 2019-2020 according to U.S. News & World Report, including second in Houston and third in Texas. The University of Houston has been ranked among the best in the United States in a number of categories, according to the U.S. News and World Report Best Colleges 2021 rankings. UH earned a top 50 ranking as a “Top Performer for Social Mobility,” and also landed on the lists for “Top Public Schools” and “Best Value Schools.

Where To Invest in The Houston Real Estate Market?

If you are looking to buy real estate in Houston, you should know the best places to invest in. The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Here are some of the neighborhoods in the Greater Houston Area which are good for investing in real estate.

1. Kingwood Area, Houston, TX

The top pick is a suburb called Kingwood Area in Harris County. Niche.com ranks it as #1 in the best suburbs to buy a house in Texas. Home prices and rent in the Kingwood area are both above average here, and the shores are a definite crowd-pleaser. The links to the city center are convenient, but Kingwood has plenty to offer in itself. A good place to consider with its potential for growth and development.

According to Realtor.com, the median list price of homes in Kingwood, TX was $340K in March 2022, trending up 15.3% year-over-year. The median listing price per square foot was $139. It is a seller's market, which means that there are more people looking to buy than there are homes available. It has 39 public schools rated good and higher by GreatSchools.

2. El Lago, Houston, TX

This suburb is just outside Taylor Lake Village. Niche.com ranks it as #3 in the best suburbs to buy a house in Texas. Home prices and rent in El Lago fall slightly below the national average here, so the growth potential is rather exciting. It’s a quiet neighborhood with a good jobs market, so very appealing for potential buyers or tenants.

According to Realtor.com, the median list price of homes in El Lago, TX was $310K in March 2022, trending up 11.1% year-over-year. The median listing price per square foot was $150. It is a seller's market, which means that there are more people looking to buy than there are homes available. On average, homes in El Lago, TX sell after 42 days on the market. The trend for median days on market in El Lago, TX has gone down since last month, and slightly down since last year.

3. Clear Lake, Houston, TX

Clear Lake City is a master-planned community located in southeast Harris County, Texas, within the Bay Area of Greater Houston. It is the second-largest master-planned community in Houston — behind Kingwood. Clear Lake enjoys all the amenities you’d expect from a larger city, but is actually quite small and inviting. And the large lake is a definite selling point.

The population is quite high, topping 83,000, and home prices in this Houston area are a little above the national average. The open spaces here are worth noting because they are attractive for buyers and they show potential for development, so a little research could unveil a good investment opportunity in Clear Lake.

According to Realtor.com, the median list price of homes in Clear Lake was $299K in March 2022, trending up 10.8% year-over-year. The median listing price per square foot was $147. Clear Lake is a seller's market, which means that there are more people looking to buy than there are homes available.

On average, homes in Clear Lake sell after 39 days on the market. The trend for median days on market in Clear Lake has gone up since last month, and slightly down since last year. Clear Lake hosts 24 public schools rated good and higher by GreatSchools. You can find dozens of grocery stores and hundreds of cafes and restaurants in Clear Lake.

4. Addicks Park Ten, Houston, TX

Addicks Park Ten is located in the westernmost part of the City, north of Interstate 10. Most of the area is made up of the Addicks Reservoir, a large flood control dam. One of the more affordable suburban neighborhoods, Addicks Park Ten ticks a lot of boxes for potential buyers or tenants. It has good connections to the city center, and plenty of things within its own boundaries to attract new residents.

Home prices fall pretty close to the national average here, but the Houston magic of price growth could make an investment here profitable. And average rent is higher than the national average here. The median list price of homes in Addicks – Park Ten was $269.9K in March 2022, trending up 28.5% year-over-year. The median listing price per square foot was $141.

On average, homes in Addicks – Park Ten sell after 52 days on the market. The trend for median days on market in Addicks – Park Ten is flat since last month. Addicks – Park Ten hosts 14 public schools rated good and higher by GreatSchools such as Jean & Betty Schmalz Elementary School.

5. Taylor Lake Village, Houston, TX

Taylor Lake Village is a city in Harris County, Texas, United States. Taylor Lake Village is another area where the median home value is only a little above the national average, but rental values are sky-high. Another beautiful suburban neighborhood, Taylor Lake Village is something of a tourist attraction because of its proximity to NASA and the Johnson Space Center. Purchasing a property here could be a real money-spinner if placed on the tiny rental market, but home price growth is likely to net you a tidy profit as well.

On Realtor.com, the median list price of homes in Taylor Lake Village, TX was $448.5K in March 2022, trending up 38% year-over-year. The median listing price per square foot was $151. It was a balanced market as the total sales to total listings ratio was between 0.12 and 0.2. In other words, the supply and demand of homes are about the same. On average, homes in Taylor Lake Village, TX sell after 33 days on the market. The trend for median days on market in Taylor Lake Village, TX has gone down since last month, and slightly down since last year.

6. Greatwood, Sugar Land, TX

Greatwood is a census-designated place and master-planned community located in the extraterritorial jurisdiction of Sugar Land within Fort Bend County, Texas, United States. For its mix of city location and rural surroundings, Greatwood will tick a lot of boxes for many buyers. Property values are above average here, but rent prices are extremely high due to the shortage of rental properties available.

Neighborhood Facts for Greatwood (Source: HAR.com)

Average Price $470,599
Average Price/Square Ft. $154
Average Bedrooms 4.08
Average Baths 2.92
Average Year Built 1997
Average Square Ft. 3,089

The median list price of homes in Greatwood Crossing Subdivision was $379.2K in March 2022, trending flat year-over-year on Realtor.com. The median listing price per square foot was $151. It is a seller's market, which means that there are more people looking to buy than there are homes available. On average, homes in Greatwood sell after 43 days on the market. The trend for median days on market in Greatwood has gone down since last month, and slightly down since last year.

7. Memorial, Houston, TX

The Memorial area of Houston, Texas is located west of Downtown, northwest of Uptown, and south of Spring Branch. The first of the more distinctly urban areas on our list for Houston, Memorial has a population of 52,000 with real estate values way above the national average. For those that can afford it, Memorial is a great place to live and it wins the niche.com award for the best place to raise a family.

Memorial homes enjoy easy access to schools, stores, restaurants, entertainment centers, and parks. Investors looking to rent out properties might find Memorial most alluring. According to Houston’s Best Public Schools, the area is zoned to some of the top-ranked schools in Texas including Memorial Drive Elementary, Frostwood Elementary, Wilchester Elementary, Bunker Hill Elementary, Memorial Middle, and Memorial High.

Neighborhood Facts for Memorial (Source: HAR.com)

Average Price $891,004
Average Square Ft. 3,028
Average Price/Square Ft. $275
Price Range $125,000 – $5,750,000
Homes for Lease 48
Average Rent $2,738

According to Realtor.com, the median list price of homes in Memorial was $542.5K in March 2022, trending down 3% year-over-year. The median listing price per square foot was $211. Memorial is a seller's market, which means that there are more people looking to buy than there are homes available. On average, homes in Memorial sell after 42 days on the market. The trend for median days on market in Memorial has gone down since last month, and slightly down since last year.

8. Lake Houston, Houston, TX

Though another suburban district, Lake Houston has a considerably largest population above 73,000, with real estate values averaging close to the national median at $175,915. The Lake Houston region consists of several growing communities. From golf courses to country living and from upscale mixed-use developments to signature shopping, the Lake Houston Area has it all.

Niche.com rates Lake Houston as the safest place to live in the Houston area, so the community is appealing to buyers looking for the more urban type of suburb. Interestingly, median household income here is nearly twice the national average, suggesting that the job market performs highly for such an affordable area.

Currently, Lake Houston is a hot market, according to Realtor.com. The median list price of homes in Lake Houston was $350K in March 2022, trending up 2.2% year-over-year. The median listing price per square foot was $140.On average, homes in Lake Houston sell after 47 days on the market. The trend for median days on market in Lake Houston has gone down since last month, and slightly down since last year.

9. New Territory, Sugar Land, TX

New Territory is another suburban neighborhood where house prices and rental values are above the national average. New Territory is a census-designated place and master-planned community within the extraterritorial jurisdiction of Sugar Land in Fort Bend County, Texas, United States. It is a popular area with quiet streets and lots of community programs, and as such, the population is likely to keep rising. As usable land for housing decreases with current housing developments, property prices are likely to increase, so the investment opportunity is there.

Neighborhood Facts for New Territory (Source: HAR.com)

Average Price $538,700
Average Price/Square Ft. $162
Average Bedrooms 4.21
Average Baths 2.93
Average Year Built 1999
Average Square Ft. 3,299

On Realtor.com, the median list price of homes in New Territory was $412.5K in March 2022, trending up 13% year-over-year. The median listing price per square foot was $148. It is a seller's market, which means that there are more people looking to buy than there are homes available. On average, homes in New Territory sell after 32 days on the market. The trend for median days on market in New Territory has gone down since last month, and slightly down since last year.

10. Cinco Ranch, Houston, TX

Cinco Ranch is a census-designated place and master-planned community located in the extraterritorial jurisdiction of the city of Houston within Fort Bend and Harris counties in the U.S. state of Texas. This suburban neighborhood is known for its great community and array of superb schools and shopping centers. Residents praise the comfort and safety of the area. The terrific Cinco Ranch lifestyle and top-notch education continue to attract new-home buyers from across Houston and across the nation.

Median home values are considerably above the national average and the job market caters for above-average earners. The area attracts buyers and renters who can afford the higher home prices in Houston, so as growth continues there are profits to be made. On Realtor.com, the median list price of homes in Cinco Ranch, TX was $480K in March 2022, trending up 10.3% year-over-year.

The median listing price per square foot was $154. It is a seller's market, which means that there are more people looking to buy than there are homes available. On average, homes in Cinco Ranch, TX sell after 36 days on the market. The trend for median days on market in Cinco Ranch, TX has gone up since last month, and slightly down since last year.

Neighborhood Facts for Cinco Ranch (Source: HAR.com)

Average Price $584,953
Average Price/Square Ft. $174
Average Bedrooms 4.05
Average Baths 2.90
Average Year Built 2005
Average Square Ft. 3,203

Buying Your First Investment Property in Houston?

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 areas, 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. Consult with one of the investment counselors who can help build you a custom portfolio of turnkey cash-flow rental properties in the various growth markets across the United States.

All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching top real estate growth markets and structuring complete turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Remember, caveat emptor still applies when buying a property anywhere. This article aimed to educate investors who are keen to invest in Houston real estate in 2020. Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your own research and take the help of a real estate investment counselor. 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, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References

  • https://www.har.com/
  • https://www.realtor.com/
  • http://abc13.com                                                                                                             
  • https://www.visithoustontexas.com/about-houston/colleges-and-universities                     
  • https://www.niche.com/places-to-live/search/best-places-to-live/m/houston-metro-area/

Should You Invest In The Dallas Real Estate Market?

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Investing in Dallas real estate is always considered a good decision by seasoned rental property investors. Cities like Dallas have seen residential exodus characteristics with both domestic and international immigration. The Big D’s home prices have been skyrocketing with homeowners and renters improving their desirability to the Dallas' urban neighborhoods full of Millennials. You should invest in Dallas investment properties because of its favorable business climate and Texas’ low taxes are pulling in innovative companies that strengthen the city's economic diversity.

New York may have been the city that never sleeps with several cultural attractions, fashion icons, and trendsetting architectural designs but it’s been falling behind recently. Now Dallas has taken over as the hot destination for savvy and new real estate investors. Since 2010, about 100 firms have moved into DFW from other states, including Toyota North America from California and Topgolf from Illinois.

Why Should You Invest In Dallas Real Estate?
  • Population Expected to Double in Next 15 Years
  • Dallas is one of the leaders in the U.S. for employment and population growth.
  • 52.9% of Dallas rents vs. 33% nationally.
  • Newly remodeled REOs (2004 or newer).
  • Properties 5% – 15% below market value.
  • 1-year appreciation forecast of 15-20%.

Top Reasons to Invest in The Dallas Real Estate Market

Dallas real estate investment

1. The Dallas Housing Market Forecast 2022

According to Dallas News, sales trajectories indicate that the prices will continue to rise. However, this won’t be the same as last year. On the other hand, land value is always appreciated making real estate one of the wisest investment choices in the Dallas Housing Market. The typical home value of homes in Dallas-Fort Worth-Arlington Metro is $370,501. This value is seasonally adjusted and only includes the middle price tier of homes. Dallas-Fort Worth-Arlington Metro home values have gone up 29.3% over the past year and they will continue to rise in double-digits over the next twelve months.

The appreciation forecast for Dallas County is stronger than the metro area. The pandemic has led to double-digit price appreciation in 2021. According to Mmymetrotex.com, the median price has reached a record of $359,900, up 19% year-over-year. The months of inventory is 0.8 months — which shows it is a strong seller's market.

Dallas County Real Estate Trends
Courtesy of Mymetrotex.com

2. Booming Economy of Dallas

With the influx of new investors, the city has seen a much more diversified economic reach, making it the number one reason to invest in the Dallas Real Estate Market. Located in Texas and traditionally known for the oil business, the modern Metropolis has seen its economy grow stronger than before. This can be attributed to sectors like education, technology, and communications that have made it impossible for investors with steady incomes to purchase residential properties.

Renters now have access to a range of properties. From cheap apartments to luxurious condors, homeowners have readily available markets in the real estate business. Innovation is global, so being connected to the rest of the world is more important than ever. Dallas-Fort Worth International Airport’s 210 nonstop destinations include 56 foreign cities.

The growing city of Dallas has been ranked the 2nd in job growth with over 500,000 jobs created in the recent past. More jobs equal remarkable investment decisions to choose from after obtaining that paycheque. Among them is the Dallas housing market which has been on a rising trend. The big Dallas has even bested known metropolis cities like New York and Washington to offer more job opportunities – a clear indicator that you should consider investing in Dallas real estate.

The Dallas-Fort Worth metroplex is now home to 24 Fortune 500 company headquarters, trailing only New York and Chicago; 40 years ago, the region had fewer than five. DFW’s economy has grown markedly faster than those of its three largest rivals (New York, Los Angeles, and Chicago), and it has come through the COVID-19 pandemic with less employment loss than any other metro among the nation’s 12 largest.

DFW's location and cost advantages have become powerful business magnets. Texas Instruments, American Airlines, Southwest Airlines, Kimberly-Clark, and DR Horton are already headquartered in the city. DFW has also established itself as the third-largest financial centre in the United States. The dispersed financial institutions in the area may not resemble those associated with Manhattan-style density, but they are expanding.

3. Population Growth

Often going hand in hand with job growth, population growth increases buyer demand, leading property values in desirable neighborhoods to rise. Dallas has registered a significant population growth. New data from commercial real estate services company Cushman & Wakefield shows DFW gained 1,349,378 residents from 2010 through 2019.

DFW's population has increased nearly three times faster than the national average for the country's 50 largest metros. Net domestic migration has contributed significantly to this growth: DFW has the fourth-highest rate of net inbound migration (including millennials) among America's top 20 metros, and the area has seen a massive increase in its foreign-born population. Demographers predict that DFW will surpass Chicago to become America's third-largest metro area sometime in the 2030s.

In terms of the number of new residents tallied during the past decade, DFW ranked first among U.S. metro areas, the data indicates. For DFW, the 2020-29 forecast would represent a population growth rate of 17.9 percent, down from 20.9 percent for 2010 through 2019, Cushman & Wakefield says.

It is expected to add 1,393,623 more residents. For the second decade in a row, that would be the highest number of new residents for any metro area, the company says. Dallas which had its roots in the small-scale farming sector was boosted by the oiling business to become an urban cultural and business center.

The fast-uneven growth in the metro area as seen in Denton and Collin counties with new families has seen the construction of new homes and new apartments. Rent growth is expected to moderate to around 4 percent over the next three years, but ongoing increases likely will compel renters to begin considering other options. This is the second reason to invest in Dallas real estate market.

4. Growth of Short-Term Rentals

If you're interested in investing in short-term rentals, you should know that Dallas was ranked among the best places for Airbnb investors in 2019. Travelers are increasingly springing for cozy vacation rentals rather than traditional hotels, and business is booming in Dallas. Although the tourism industry has experienced sharply falling revenues and is an economic sector among those most severely affected by the pandemic home rentals have outperformed hotels in 27 global markets since the onset of Covid-19.

Airbnb is still the biggest player in the short-term rental market in the world with listings in more than 220 countries and regions. It has more than 12.7 million listings as of November 2022, down from 14.1 million listings in 2020. (Statista). The country with the most Airbnb listings is the United States of America, which had an average of 2,249,434 listings in 2021. The total number of Airbnb users in the United States is forecast to reach 45.6 million by 2022 based on the Statista's report.

According to another report, Dallas ranks among the top 20 cities for Airbnb based on occupancy data. The platform has registered remarkable growth in the Dallas area – an indication that most people require fast accommodation services.

Here is an analysis of Short-Term (Airbnb) Rentals for the trailing twelve months (July 1st, 2021 to June 30th, 2022).

  • The Average Daily Rate for rentals in Dallas, Texas is $120 dollars.
  • Throughout the year, the rate only fluctuates by $19 from the mean with the highest Average Daily Rate in June 2022 ($139) and the lowest in August 2021 ($110).
  • Occupancy Rates in Dallas, TX are high in the summer, despite Dallas’ hot summer weather. The average occupancy rate was 58% for the period from July 2021 through June 2022.
  • The lowest occupancy rate was in November 2021 at 8% and the highest was in May 2022 at 70%.
  • The average occupancy rate is the highest for 2 and 1-bedroom homes, 60% and 59% respectively.
  • Chalet’s research shows that studios have the highest percentage of homes in the high-yield territory (30%) and could be and therefore could be a good strategy for this market.

The vacation rental giant is on track to be a $200 million-a-year force in Texas, with Dallas among the cities leading the charge. This could be a green flag to invest in the Dallas short-term rental market.

How does Airbnb operate? Air bed and breakfast is an online-based market for renting properties to guests. Foreigners have been able to receive accommodations through the platform which takes a 3% commission on the bookings. The rest goes to the homeowner. Airbnb stays often cost less than hotel stays. The average nightly price for a reservation is $80. Naturally, prices depend on the type of hotel or Airbnb accommodation that you seek.

5. Low Cost of Living In Dallas

A strong economy is reflected by its low cost of living and high salaries. A diverse economy and low cost of living drive people to a city to find better economic opportunities. Financial stability among the Dallas residents could mean increased borrowing rates at a financial institution with better chances of loan repayments. Higher mortgages have been registered in Dallas since most residents qualify for them due to their next-to-perfect credit scores. Moreover, the low living costs in Dallas make it possible to save up and buy a property with cash. Families are attracted by the area’s relatively low cost of living (including taxes) and job opportunities.

6. High Rent-to-Home Price Ratio

When making the decision to rent or buy a home, it's not enough to look at home prices and mortgage rates. You also need to look at rental rates for comparable properties to understand if it makes more economic sense to buy or rent on a long-term basis. The price-to-rent ratio measures the relative affordability of renting and buying in a given housing market.

As a general rule, a lower price-to-rent ratio indicates that a place is more favorable to homebuyers. A higher ratio indicates a better environment for renters. The markets with ratios above 10 are very favorable to renters whereas the markets with ratios below 10 are favorable to homebuyers.

The price-to-rent ratio in Dallas is around 16.01. Therefore, Dallas is more favorable to renters. This also accounts for the fact Dallas is among those US cities where renting is more reasonable than buying. In fact, Dallas has traditionally had one of the lowest homeownership rates among major U.S. metros. According to US Census Bureau, the owner-occupied housing unit rate in Dallas from 2015-2019 has been 40.9%.

Applying this ratio, you can also calculate a projected average home price for a house or apartment that rents for $1,000. For Dallas, it comes out to be $192,137. However, represents the entire market. Actual home values will vary based on other factors such as proximity to commercial centers, access to transit, and home size. Rentals tend to be smaller (and therefore less expensive) than for-sale properties, so these values may overestimate true market prices.

One of the many reasons Dallas has been growing over the years is because young people have moved there and continue to do so, and they preferred starting with rental properties before buying their own homes. The demand for rental units has increased over the last year, so it’s the perfect opportunity to invest in Dallas real estate.

Hence, as a rental property investor, you get a huge percentage of renters in Dallas— around 60% — which shows that investing in the Dallas housing market could be a major investment success in the years to come.

7. Dallas Has Low Crime Risks Neighborhoods

With the low costs of living in Dallas, it would be ambiguous for the city to register high crime levels. However, there are minor cases of petty theft, aggravated assaults, and cases of vandalism in Dallas. A good investment should be just about risk-free. Safer neighborhoods attract more single-family residents which can be good for the real estate market. Some of the best places to buy a rental property in Dallas where crime rates are very low are Cockrell Hill, Frisco, Lochwood, Munger, Bryan Place, Allen, Campbell Green, Coppell, North Dallas, Farmers Market District, and University Park.

8. Technology and Innovation in Dallas

According to a recent census, the population of Dallas mainly comprises Latinos and immigrants. A greater proportion of this population consists of college graduates seeking to establish themselves in the competitive world. Moreover, a low number of people retiring means that the small single families are subject to grow larger with time. This in turn is a good sign for the growth of single-family rental homes in the Dallas housing market.

The youth may provide creative new ideas for the real estate businesses and other start-ups. Dallas has already established itself as a startup hub and is considered one of the most high-tech cities in the world. Dallas boasts of rapid growth in the number of venture capitalists and integration of technology into the city landscape.

9. Invest In Dallas | Get Government Incentives

The State of Texas has worked hard to develop and sustain a business-friendly operating environment. State and local governments provide tax incentives, financing assistance, and an array of services to help companies establish or expand in Texas. The economic development plan of the City of Dallas, Strategic Engagement, was approved by Dallas City Council in 2005, updated in 2013, and continues to be relevant today.

ACHIEVING THE VISION. Strategically engaged in economic development, where government works with the business community to overcome obstacles to growth and markets itself locally, nationally, and globally. This makes for one more strong reason to invest in Dallas, Texas.

Where To Invest in The Dallas Real Estate Market?

If you are looking to buy real estate in Dallas, you should know the best places to invest in. The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. Here are some of the popular neighborhoods in or around the Dallas metro area where you can invest in real estate.

Before you even make an offer, you should drive around these neighborhoods and surrounding areas to assess the other homes and people who live there. Check with the local police department to see if the home is located in a low-crime area. Talk with other residents, and ask them if property values are rising or falling.

1. Cockrell Hill, Dallas, TX

Cockrell Hill is a city in Dallas County, Texas. Median Household income of $22,555, slightly lower than the national average. 48.4% lower education level on the increase. Racially diverse so you can look to it if you need to invest in a property that appeals to people from all walks of life. Up and coming younger population. 50/50 split married, unmarried, or with children.

Total households were $7,038 Tarrant County- has seen an increase in the building over the past few years and is expected to pull higher rental rates as increased growth of amenities is going strong. Dallas Independent School District serves students in Cockrell Hill. All of the schools serve the Cockrell Hill area in the City of Dallas.

The typical home value of homes in Cockrell Hill is $227,769. This value is seasonally adjusted and only includes the middle price tier of homes. Cockrell Hill home values have gone up 19.3% over the past year and they will continue to rise in the next year.

2. Frisco, Dallas, TX

Frisco is a city in Collin and Denton counties in Texas. It is part of the Dallas-Fort Worth metroplex and is approximately 25 miles (40 km) from both Dallas Love Field and Dallas/Fort Worth International Airport. A large number of people move to Frisco, TX for its unparalleled school district, Frisco ISD. Frisco is a wonderful suburban town on the outskirts of Dallas that has been dramatically growing over the past few years.

Although there seem to be many new construction sites all over town, things have been settling down recently. Home prices have saturated, the mall/other buildings have been in function for several years now, and we have a very low crime rate. According to niche.com, it is ranked #2 in the best neighborhoods to live in Dallas-Fort Worth area.

The typical home value of homes in Frisco is $661,460. This value is seasonally adjusted and only includes the middle price tier of homes. Frisco home values have gone up by a whopping 39.9% over the past year and they will continue to rise in the next year.

3. Lochwood, Dallas, TX

Lochwood is a neighborhood in the East Dallas, TX area to the north and east of White Rock Lake and south of Lake Highlands. According to niche.com, it is ranked #35 in the best neighborhoods to live in Dallas-Fort Worth area. Employment consists of Walmart and fast-food restaurants. According to Realtor.com, the median listing home price in Lochwood was $474.9K in March 2022, trending up 8.6% year-over-year.

The median listing home price per square foot was $242. It is a seller's market, which means that there are more people looking to buy than there are homes available. On average, homes in Lochwood sell after 29 days on the market. The trend for median days on market in Lochwood has gone down since last month, and slightly down since last year.

4. Munger, Dallas, TX

The Munger Place Historic District is a neighborhood and historic district in Old East Dallas, Texas (USA), generally lying between North Fitzhugh Avenue on the southwest, Gaston Avenue on the northwest, Henderson Avenue on the northeast, and Columbia Avenue on the southeast.  Munger Place is one of the most beautiful parts of Dallas, It has a large collection of Prairie-like homes recognized by the US National Register of Historic Places.

But, what interest you as an investor is that 77% of the Households are renters, which means a massive return on investments due to low vacancy rates. The median listing home price in Munger Place Historic District was $683.8K in March 2022, trending down -2.3% year-over-year. The median listing home price per square foot was $234. According to Realtor.com, it is a balanced market in March 2022, which means that the supply and demand of homes are about the same.

5. Bryan Place, Dallas, TX

Bryan Place is a neighborhood in Old East Dallas, Texas (USA). It is east of the Arts District of downtown and the State Thomas neighborhood, north of Deep Ellum, south of Cityplace, and west of Munger Place. This part of the city is surrounded by skyscrapers, giving it a uniquely stylish look. This neighborhood actually has an Association that takes care of sanity and other issues related to the comfort of the safety of its residents.

The rental cost in Bryan Place is 90.3% higher than in other parts of Texas and that means a lot of ROI if you own a house there. According to Realtor.com, the median list price of homes in Bryan Place was $430K in March 2022, trending up 59.3% year-over-year. The median listing price per square foot was $248. This shows that this neighborhood is a hot seller's market, which means that there are more people looking to buy than there are homes available. The total sales to total listings ratio is above 0.2, which tends to favor sellers.

6. Allen, Dallas, TX

Allen is a city in Collin County, Texas, a northern suburb of Dallas. Allen has plenty of restaurants, shopping, and great schools, including Lovejoy High School and Allen High School. The famous Allen Event Center brings sporting, events, concerts, and live performances. On Realtor.com, the median list price of homes in Allen, TX was $460K in March 2022, trending up 16.5% year-over-year. The median listing price per square foot was $161. On average, homes in Allen, TX sell after 33 days on the market. The trend for median days on market in Allen, TX has gone down since last month, and slightly down since last year.

7. Campbell Green, Dallas, TX

Campbell Green is located in far north Dallas on Hillcrest and Campbell, just south of the George Bush Turnpike. According to Niche.com, it is ranked #1 in the best neighborhoods to live in Dallas-Fort Worth area. The public educational facilities are quite good in Campbell. On Realtor.com, the median list price of homes in Campbell Green was $574.9K in March 2022, trending down -11.5% year-over-year.

The median listing price per square foot was $213. This means you can probably buy a home for less than the list price, and the seller might be willing to pay some or all of your closing costs. In other words, Campbell Green is a buyer's market, which means that the supply of homes is greater than the demand for homes.

8. Coppell, Dallas, TX

Coppell is a city in the northwest corner of Dallas County in the U.S. state of Texas. It is a suburb of Dallas and a bedroom community in the Dallas–Fort Worth metroplex. It is a very family-friendly and safe city in the suburbs of Dallas, TX. The school district here is phenomenal and the environment is truly great. Coppell is a very environmentally friendly city.

According to niche.com, it is #4 in the best places to live in Dallas, Texas. On Realtor.com, the median list price of homes in Coppell, TX was $550K in March 2022, trending up 14.8% year-over-year. The median listing price per square foot was $179. Coppell, TX hosts 26 public schools rated good and higher by GreatSchools.

9. North Dallas, Dallas, TX

North Dallas is an area of numerous communities and neighborhoods. The majority of North Dallas is located in Dallas County, while a small portion is located in Collin and Denton Counties. If you are looking for something quiet and serene, this is the place to choose. It has beautiful homes with tree-lined streets. You should think of buying an investment property in North Dallas because your tenants would love to live here.

On Realtor.com, the median list price of homes in North Dallas was $1.3M in March 2022, trending up 84.4% year-over-year. The median listing price per square foot was $287. On average, homes in North Dallas sell after 42 days on the market. The trend for median days on market in North Dallas has gone up since last month, and slightly down since last year.

There are 33 zip codes in or around North Dallas. Forest Court has a median listing home price of $2M, making it the most expensive zip code. 75243 is the most affordable zip code, with a median listing home price of $394K. There are 100 active apartments for rent on Realtor.com in North Dallas, which spend an average of 42 days on the market. The median rent is $3,500.

10. Far North Dallas, Dallas, TX

This region is far north of North Dallas. It has fewer amenities but is surely a good investment in terms of affordability. Preston Road is home to shopping malls, restaurants, and outlet stores. It has a huge variety of outdoor activities and is a good place to settle down after retirement. It is a seller's market, which means that there are more people looking to buy than there are homes available.

On Realtor.com, the median list price of homes in Far North Dallas was $533K in March 2022, trending up 26.9% year-over-year. The median listing price per square foot was $197. It is a popular neighborhood and the inventory is low as compared to previous months/years. There are more buyers looking for properties and they would quite possibly pay for more than sellers ask for it.

11. Farmers Market District, Dallas, TX

As the name suggests, the Farmers Market District lies in the area of the famous Dallas farmers market. The Farmers Market District is an area in southeastern downtown Dallas, Texas. It is quite a safe and secure area. Most of the residential neighborhoods are condos and apartments and still, it is one of the best places for investment in terms of rent. It has affordable rental and investment properties that give a good return on money.

The district is zoned to schools in the Dallas Independent School District. The typical value of homes in the Farmers Market District is $648,737. This value is seasonally adjusted and only includes the middle price tier of homes. Farmers Market District home values have gone up 17.6% over the past year and they will continue to rise over the next year. Home values have appreciated by 94.8% over the last decade (ZHVI).

12. University Park, Dallas, TX

University Park is a city in Dallas County, Texas, United States, an inner northern suburb of Dallas. It comes in an A+ neighborhood. This is predominantly a residential and family-friendly area. University Park is one of the most affluent places in Texas based on per capita income; it is ranked #12. It is known for its beautiful architectural homes and churches.

The neighborhood boasts some top-ranking schools and provides a lot of outdoor activities. University Park is served by the Highland Park Independent School District. Although it has a large population, it feels more like a community through the schools, parks, and small shopping centers. According to niche.com, it is ranked #6 in the best neighborhoods to live in Dallas-Fort Worth area.

On Realtor.com, the median list price of homes in University Park, TX was $1.7M in March 2022, flat year-over-year. The median listing price per square foot was $406. It is a seller's market, which means that there are more people looking to buy than there are homes available. On average, homes in University Park, TX sell after 35 days on the market. The trend for median days on market in University Park, TX has gone down since last month, and slightly down since last year.

13. Near East, Dallas, TX

If looking for something more affordable than University Park, the Near East is the place to invest in Dallas. Though this is a newly developed residential place, the chic bars and designer shopping areas cannot be overlooked. The typical home value is $700,307. Near East's home values have gone up 17.0% over the past year and 64.4% over the last decade.

14. Highland Park, Dallas, TX

Highland Park is a town in central Dallas County, Texas, United States. It is among the five wealthiest locations in Texas, and the most affluent suburb of Dallas. The area is just three miles north of the center of Downtown Dallas. It is a thriving residential area surrounded by the highland park and university park. Highland Park has earned a reputation for having some of the most expensive home prices in this Dallas area. Public primary and secondary schools in Highland Park are operated by either the Highland Park Independent School District or the Dallas Independent School District.

It is a seller's market, which means that there are more people looking to buy than there are homes available. The median list price of homes in Highland Park, TX was $3.3M in March 2022, trending up 30.5% year-over-year. The median listing price per square foot was $590. On average, homes in Highland Park, TX sell after 36 days on the market. The trend for median days on market in Highland Park, TX has gone down since last month, and slightly down since last year.

15. Oak Lawn, Dallas, TX

Oak lawn consists of a diverse neighborhood, mostly of Urban professionals. Oak Lawn is one of the wealthier areas of metropolitan Dallas. It has beautiful and newly built high-rise condos, duplexes, and townhouses. It is surrounded by beautiful parks and marvelous restaurants. It is also a very diverse neighborhood with well-established areas of older, single-family homes and one of the best areas to invest in Dallas. The public schools in Oak Lawn are part of the Dallas Independent School District.

Oak Lawn is a seller's market, which means that there are more people looking to buy than there are homes available. On Realtor.com, the median listing home price in Oak Lawn was $599K in March 2022, trending up 16.3% year-over-year. The median listing home price per square foot was $273. On average, homes in Oak Lawn sell after 42 days on the market.

The trend for median days on market in Oak Lawn has gone down since last month, and slightly down since last year. There are 18 cities in or around Oak Lawn. Highland Park has a median listing home price of $3.3M, making it the most expensive city. Old East Dallas is the most affordable city, with a median listing home price of $450K.

16. Bluffview, Dallas, TX

Bluffview is an upscale neighborhood in north Dallas, Texas. The crime rate in Bluffview is very low. This is a highly desirable area to invest in Dallas, which is most sought-after by families, especially for its serenity and tranquility. It has a home for every taste; from the old-fashioned to the most modern. It sits ideally close to downtown Dallas, yet away from all the noise and chaos.

The neighborhood is served by the Dallas Independent School District. Bluffview is a seller's market, which means that the supply of homes is less than the demand for homes. The median list price of homes in Bluffview was $1.9M in March 2022, trending up 30.9% year-over-year. The median listing price per square foot was $400.

On average, homes in Bluffview sell after 35 days on the market. The trend for median days on market in Bluffview has gone down since last month, and slightly down since last year. There are 22 cities in or around Bluffview. Highland Park has a median listing home price of $3.3M, making it the most expensive city. Lovefield West is the most affordable city, with a median listing home price of $379.4K.

17. Lake Highlands, Dallas, TX

Lake Highlands is a neighborhood constituting most of Northeast Dallas. The neighborhood is a collection of dozens of subdivisions served by RISD public schools, as well as an array of private schools. Lake Highlands is one of the greatest parts of Dallas, located near the center of it. Lake Highlands has a mixture of a low cost of living and above-average median income. It is also a mixture of Medium and small-sized single-family homes, but they're also high-rise apartments and apartment complexes.

Lake Highlands is a seller's market, which means that there are more people looking to buy than there are homes available. The median list price of homes in Lake Highlands was $479.9K in March 2022, trending up 20.6% year-over-year. The median listing price per square foot was $207. On average, homes in Lake Highlands sell after 29 days on the market. The trend for median days on market in Lake Highlands has gone down since last month, and slightly down since last year.

18. Main Street District, Dallas, TX

The Main Street District of downtown Dallas, Texas runs along Main Street and is bounded by Lamar Street, Elm Street, the US 75/I-45 (I-345) elevated highway, and Commerce Street. The district is the spine of downtown Dallas and connects many of the adjoining business and entertainment districts. This is the area that gives the most amenities and safety.

As such, the cost of investment properties here is bound to be higher. The area is one of the busiest and with very few moments of lull regardless of the time of day or night. On Realtor.com, the median list price of homes in Main Street District was $330K in March 2022, trending up 33.6 year-over-year. The median listing price per square foot was $274.

On average, homes in Main Street District sell after 70 days on the market. The trend for median days on market in Main Street District has gone up since last month, and slightly down since last year. There are 11 zip codes in or around Main Street District. Dallas Arts District has a median listing home price of $2M, making it the most expensive zip code. 75226 is the most affordable zip code, with a median listing home price of $280K.

Are You Buying Your First Investment Property in Dallas?

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 areas, 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. Consult with one of the investment counselors who can help build you a custom portfolio of turnkey cash-flow rental properties in the various growth markets across the United States.

All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching top real estate growth markets and structuring complete turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Remember, caveat emptor still applies when buying a property anywhere. This article aimed to educate investors who are keen to invest in Dallas real estate in 2020. Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your own research and taking the help of a real estate investment counselor. 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, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References

  • https://www.zillow.com/dallas-tx/home-values
  • https://www.realtor.com/realestateandhomes-search/Dallas_TX/overview
  • https://www.niche.com/places-to-live/c/dallas-county-tx
  • https://smartasset.com/mortgage/price-to-rent-ratio-in-us-cities
  • https://www.movoto.com/guide/dallas-tx/best-dallas-neighborhoods-for-home-buyers
  • https://dallas.culturemap.com/news/city-life/01-09-20-dfw-lead-population-growth-2020-2029-cushman-wakefield/
  • https://www.dmagazine.com/publications/d-ceo/2017/december/dallas-innovation-economy-could-compete-with-silicon-valley

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