The Dallas housing market is doing great after recovering from the blows of the pandemic since July of the pandemic year. Demand for single-family homes has risen and supply has lagged since the second half of 2020. For the seventh consecutive year, the number of Texas house sales and the median price reached all-time highs, according to the Texas REALTORS® review report for the last year.

Housing demand reached an all-time high, and we witnessed numerous multiple-offer situations, including homes that drew dozens of offers and sold for significantly more than the asking price. In 2021, the number of residences sold statewide climbed by 6.2 percent to 416,853 units. Housing inventory fell to 1.2 months at the end of the year, down 0.4 months from the end of 2020.

According to the Texas Real Estate Research Center, a market that is balanced in terms of supply and demand has an inventory of between 6.0 and 6.5 months. The median home price reached $300,000, up 15.7% from the prior year. The median price per square foot of $150 represented an increase of 16.9% from 2020 and a 35.6% jump since 2017. Homes spent an average of 34 days on the market, 21 days less than 2020.

The total sales volume in the DFW housing market decreased by approximately 0.2% year over year. 112,379 homes were sold in 2021. DFW metro area months inventory decreased year-over-year from 1.1 to 0.8 months. Average days to sell throughout the metro area fell from 45 to 25 days, a decrease of 20 days year-over-year.

The median home price was up 18.6% to $345,000. On average, homes sold at 101.3% of the price at which they were originally listed. The availability of homes priced under $300,000 has decreased by 26.2% since 2017. The median price per square foot in Dallas-Fort Worth-Arlington has increased 39.8% since 2017.  45,471 new homes were sold and 51,094 new building permits were issued in 2021.

S&P CoreLogic Case-Shiller Dallas Home Price NSA Index (As of February 2022, Published Apr 26, 2022)

The S&P CoreLogic Case-Shiller Dallas Home Price NSA Index measures the average change in the value of the residential real estate in Dallas given a constant level of quality. The index survey does not include condominiums and townhouses and only covers pre-owned properties.

• February 2022 = 276.18
• February 2021 = 210.81
• 1-Year Return = 28.83%%
• Jan 2022 = 268.41
• 1 Month Percent Return = 2.89%

Dallas-Fort Worth-Arlington (DFW) Housing Report 2022

Home prices in North Texas and throughout the country have increased significantly in recent months as demand for housing has increased. Dallas's real estate market is also following this trend. The Dallas-Fort Worth area has landed on a list of the country’s most overvalued housing markets. According to the study conducted by Florida Atlantic University, the DFW area ranked 19th for overheated housing, with homes selling for an average of 31.57 percent more than they were worth.

The updated list is similar to a survey put out by the schools in August in terms of which cities appear, but the premium has increased in many markets. And Atlanta has replaced Stockton, Calif., in the top 10. Dallas-Fort Worth, TX failed to make the Top 10 but has also shown a steep increase in how much premium buyers are paying — almost 43.8 percent more than they were worth.

Intense competition for houses across Texas led to another huge bump in sales prices. In February, the median sales price reached a record $325,500, up almost 19% from a year earlier. The DFW housing market remained hot in March 2022. The Texas Real Estate Research Center provides monthly statistics on the DFW housing market for single-family homes. The Texas REALTORS® provided the data for this report.

Housing Demand

• Sales volume for single-family homes decreased 1.03% YoY from 8,285 to 8,200 transactions
• Year-to-date sales reached a total of 20,564 closed listings
• Dollar volume rose from $3.41 billion to $3.96 billion.

Housing Prices

• The average sales price rose 17.3% YoY from $411,446 to $482,607.
• The average price per square foot subsequently rose from $164.14 to $206.27.
• The median price rose 22.92% YoY from $325,000 to $399,505.
• The median price per square foot also rose from $152.87 to $195.77.
• Close to Original List Price was 104.54%, up 4.02% YoY.

Housing Supply

• New Listings decreased by 2.15% YoY.
• Active Listings decreased by 17.52% YoY.
• Months inventory for single-family homes declined from 0.9 to 0.7 months supply.
• Days to sell declined from 69 to 62.

Economy

• When an economy begins to slow, it has the potential to have an impact on its housing markets.
• Housing markets are affected by economic slowdowns, which in turn have an impact on the economy because housing-related activities decline and slow overall economic activity.
• The state of Texas is experiencing a boom in its economy as businesses are pouring money into the Lone Star State at an unprecedented rate.
• Sales volume for single-unit residential housing decreased 1.38% YoY from 9,060 to 8,935 transactions.
• Year-to-date sales reached a total of 22,409 closed listings.
• Dollar volume rose from $3.66 billion to $4.23 billion.
• The Texas Workforce Commission reported that in March, the MSA jobs increased from 3,728,100 to 4,019,800.
• This represents a 7.82 percent year-on-year increase or 291,700 new jobs as compared with March 2021.
• Over the last five years, the job growth rate has averaged 2.5 percent.
• As more Texans jumped back into the job market, the unemployment rate fell to 3.40 percent in March from 6.5 percent in 2021.

Dallas County Housing Market Trends & Statistics

In March, active listings in the area were down almost 40% from a year earlier. At the end of March 2022, a dwindling supply of active listings has pulled Dallas' months of inventory (MOI) down to 0.8 months, according to the latest data released by MetroTex, the largest REALTOR® association in North Texas. The local agents are doing their best to look for the supply solutions necessary to keep this market healthy. The 0.8 months of inventory figure is 0.5 months less than the March of last year. The new construction in the last 10 years has not been anywhere near enough to handle the population growth in Dallas.

Sales Price: The Dallas median home price jumped by nearly 19% year-over-year to $359,900 in March 2022 — a new record. Heightened competition for homes on the market and low mortgage rates have placed consistent pressure on home prices for months now. Due to a large gap between supply and demand, the market is expected to continue to favor sellers in 2022, according to forecasts.

Homebuyers across the country are expressing an increased interest in suburban neighborhoods. Home prices in suburban areas are expected to rise faster in 2022 as a result of an increase in demand combined with a decrease in the number of available properties on the market.

Listing Prices: Realtor.com's data shows that in March 2022, the median list price of homes in Dallas County, TX was $415K, trending up 27.7% year-over-year. The median listing price per square foot was $200. Dallas is the seller's real estate market, which means that more people are looking to buy than there are homes available. The market has a total sales to total listings ratio above 0.2 which tends to favor sellers.

• The median sales price increased by 19% YoY to $359,900 in March 2022.
• Closed sales decreased by 9.2 percent year-over-year.
• Total active listings declined by 39 percent year-over-year.
• The total days on market equaled 54 — 19 days less than Mar 2021.
• A six-month supply of houses for sale is generally considered to be a ‘healthy’ real estate market.
• By the end of March, the available housing supply in Dallas County had decreased to 0.8, down from 1.3 in Mar 2021.
• From this perspective, the Dallas real estate market is a hot seller's market.

Dallas Real Estate Market Forecast 2022 (Latest Projections)

As a result, what do you think the Dallas real estate market will look like in 2021 and 2022? Among the most affordable real estate markets in the state of Texas, Dallas is one of the most affordable. It is also one of the most active real estate markets in the country for renting out properties. Predictably, the Dallas real estate market was expected to outperform its national counterpart in terms of annual home value appreciation in 2020 before the Covid-19 pandemic struck the United States.

Single-family home starts in the Dallas-Fort Worth area increased by more than 30% in 2020, resulting in the highest volume of construction in more than a decade in the region. A Realtor.com report for the nation's hottest metros also forecasts that DFW could see combined sales and price growth of 12.3 percent in 2022. Dallas-Fort Worth-Arlington has been ranked #37 in the nation's top housing markets for 2022. The sales are expected to grow by 8.3% while the median price is expected to rise by 4% in 2022.

Before this ongoing pandemic, Dallas was a balanced real estate market and it was doing pretty well. But the pandemic led to a boom. The median price of residential homes sold in Dallas-Fort Worth-Arlington MSA rose by 18.56% in 2021. The YTD price was $345,000. It is $45,000 more than 2020's median price. Months of inventory at the end of the year was 0.8, down from 1.1 months reported in 2020.

Total residential sales were slightly down by 0.22% in 2021. Almost 112,371 units were sold last year. Active listings were down -43.68% year-over-year, according to the statistics released by Texas Realtors. The housing supply is tightest at the lower end of the pricing spectrum. There are more house hunters and buyers on the more affordable end as compared to the higher end.

Let us look at the price trends recorded by Zillow over the past few years. Since the last decade (May 2012), the DFW metro area home values have appreciated by nearly 152% — Zillow Home Value Index. For your information, ZHVI is a seasonally adjusted measure of the typical home value and market changes across a given region and housing type. It reflects the typical value for homes in the 35th to 65th percentile range.

ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. The typical home value of homes in the DFW metro is currently $370,501. It indicates that 50 percent of all housing stock in the area is worth more than $370,501 and 50 percent is worth less (adjusting for seasonal fluctuations). In March 2021, the typical value of homes in Dallas was around $286,000.

DFW home values have gone up 29.3% over the last twelve months. Dallas county has seen a similar price appreciation as home values have gone up 24.4% over the last twelve months. Here's Zillow’s housing market forecast for Dallas and DFW MSA. The Zillow Home Value Forecast (ZHVF) is the one-year forecast of the Zillow Home Values Index (ZHVI). It is created using all homes, mid-tier cut of ZHVI and is available both raw and smoothed and seasonally adjusted.

Housing inventory remains low in many major cities across the nation, and Dallas is no exception to that. The supply and demand dynamics will likely push prices north again over the next 12 months. With low inventory and strong price growth, the DFW housing market will continue to be characterized by strong demand and low inventories in 2022.

Inventory of homes priced less than $300,000 will be particularly low, which will have a negative impact on sales in that price range. Because listing activity appears to have reached a trough and is increasing, inventories should improve in the coming months, alleviating some of the price pressures. Because of the dramatic increase in home prices over the course of the year, it is likely that some families were priced out of the market altogether.

• Dallas-Fort Worth-Arlington Metro home values have gone up 29.3% over the past year and the latest forecast is that they will continue to rise over the next twelve months.
• Dallas County home values have gone up 24.4% over the past year (current value = $309,905) and the latest trends show that prices will continue to rise at a slower rate over the next twelve months.
• The typical home value of homes in Fort Worth is $311,106, up 29.9% over the past year.
• Over the next twelve months, Fort Worth home prices will continue to rise, but at a slower rate.
• The typical home value of homes in Arlington is $317,880, up 28.8% over the past year.
• Over the next twelve months, Arlington home prices will continue to rise, but at a slower rate.
• Texas (Statewide) home values have gone up 24.1% over the past year and will continue to rise in 2022.

The graph below, created by Zillow, shows the growth of Dallas home values since 2012.

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? While many have lost jobs, making them ineligible for a home mortgage, some sellers took their homes off the market. The decrease in the number of active listings over the past couple of months indicated that new sellers were still not willing to put their homes on the market until the pandemic or its threat is completely over. Dallas and the entire metro area market is so hot that it cannot shift to a complete buyer’s real estate market, for the long term.

In a balanced real estate market, it would take about five to six months for the housing supply to dwindle to zero. In terms of months of supply, Dallas can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s not going to happen. Therefore, in the long term, the Dallas real estate market remains strong and skewed to sellers, due to a persistent imbalance in supply and demand. As of now, the month of supply is 0.8 months in Dallas-Fort Worth-Arlington.

For sellers in Dallas, it is a great time to sell. Motivated buyers are looking for houses for sale, and you are not competing with as many property owners. Many sellers have chosen to back out amid this pandemic. Buyers in Dallas should act now and take advantage of scooping up their favorite deals which otherwise are taken away by seasoned investors in the bidding wars.

Is Dallas a Good Place For Real Estate Investment? Many real estate investors have questioned whether or not purchasing a property in Dallas is a wise financial decision. If you want to know what the real estate market will be like for real estate investors and buyers in 2021, you need to dig deeper into the local trends. The Dallas housing market is an excellent place to invest in income properties, whether you're purchasing your first or simply adding another to your portfolio. It doesn't get much more “location” than this when it comes to real estate.

The Dallas housing market offers excellent profit-generating opportunities for all types of real estate investors, from first-time buyers to seasoned professionals. In Dallas, large apartment buildings and single-family homes account for the vast majority of the city's housing stock, with small apartment buildings accounting for the majority of the remaining properties. Renter-occupied and owner-occupied housing are found in equal amounts in Dallas.

Dallas is one of the cities in the United States where renting is more cost-effective than buying. A large part of the reason why Dallas has grown over the years has been the influx of young people who have settled in the city and are continuing to do so. They have preferred to start with rental properties rather than purchasing their own homes. In Dallas, the demand for rental units has increased by 14 percent in the last year, making now an excellent time to make a financial investment in the city's housing market.

Single-family homes make up approximately 43.51 percent of the total housing units in the city of Dallas. In January and February, Dallas-Fort Worth was the most active market in the country in terms of single-family construction starts. With 11,636 residential projects permitted, it ranked first in the nation for the combined number of single and multiple family units being constructed, according to the U.S. Census Bureau's Building Permits Survey.

Dallas has a thriving economy and is experiencing steady population growth, which will help you put more money in your pocket. As rents rise, savvy investors should consider investing in Dallas commercial real estate. A single-family home or a multifamily apartment as an investment in the Dallas real estate market, regardless of whether it is a single-family home or a multifamily apartment, is an investment that can reap significant rewards if you have some experience and education in real estate investing. When it comes to investing in real estate, you need to know where to put your money, which means conducting extensive research to determine the best neighborhoods in the Dallas real estate market.

Let’s take a look at the number of positive things going on in the Dallas real estate market which can help investors who are keen to buy an investment property in this city.

Dallas is a Growing Real Estate Market

One of the largest metropolitan areas in the USA, Dallas is currently the beating heart of the Texas housing market. Dallas's population has grown at twice the national rate for years now and this pushes the prices of Dallas investment properties higher due to builders not being able to keep up. Dallas home prices have been on the rise in the last 10 years. In fact, over the last 6 years, 3 bedroom homes in Dallas have appreciated by 45%. During the same period, 3 bedroom home prices in Dallas appreciated by 41% nationwide.

Dallas's housing prices have increased 29% over the last three years, even with these increases in home prices, they are still competitive for investment properties and you can expect further increases over the years. This shows us that home prices in Dallas are rising more quickly than in most other cities across the nation. If you want to buy an investment property in Dallas, don't wait around, go ahead and do it.

A strong economy has buoyed home prices in Dallas beyond their fundamental levels for a sustained period, according to a report by Florida Atlantic University associate dean Ken Johnson. Home prices in Dallas are still appreciating but at a decreasing rate, suggesting that the current upward pattern in property appreciation is nearing an end. A bubble is not likely but a significant slowdown in-home price increases are most likely, according to James Gaines, chief economist with the Real Estate Center at Texas A&M University.

He said that things may slow down in Dallas, but it would take a major economic event to do that. The university study isn't the first to warn of a home price correction in the Dallas area. But other reports by CoreLogic and Fitch Ratings have said North Texas home prices are overheated. And with the outbreak of the COVID-19 pandemic, things have really slowed down, at least for the short period.

No State Capital Gains Tax

Texas has no state income tax, and many property owners are attracted to the state because no state capital gains tax on income from sales of property (Landowners still have to pay federal taxes on their gains under certain situations). This makes investing in Texas more lucrative for investors. Dallas house prices are also much lower than in other major cities.

The result is an attractive rental property market for domestic and international investors alike. According to the Texas Association of Realtors, around one-third of international investors come from Latin America, just ahead of those from Asia. European buyers make up around one in 10 buyers, while Indian buyers are also a notable presence in the Texas real estate market.

Dallas' Strong Economy

You should think of investing in Dallas real estate because it has a very diverse economy so there is a niche for people of every income level. It is estimated that 340 people move to Dallas-Fort Worth every day. Dallas has the lowest homeownership rate in the country, with renting more affordable than buying.

Dallas is a job hub. In the past decade, new jobs have created a land rush that has made North Texas one of the fastest-growing areas in the country. In 2018, 102,500 jobs were created here, and about 130,000 people moved to town. It is home to a large number of corporate headquarters, the city is a significant financial hub in the South of the USA.

Dallas's local economy is a mix of aerospace, computer chips, telecommunications, transport, energy, and healthcare sectors and the Finance and Business Services. These sectors are all providers of good wages which allows for a strong market for Dallas investment properties.

Additionally, since 2014, 15 major tech companies have moved to Dallas, Texas bringing advancement and job growth in industrial and professional areas. These factors contribute to the immense growth of the Dallas real estate market. Tourism is on the rise in Dallas, Texas which promotes job growth in towns and neighborhoods within the area.

Some of the common points of attraction are the AT&T Stadium, Reunion Tower, and Book Depository. Dallas is becoming a hub for start-ups and IT companies, leading to an increase in investment in the Dallas real estate market.

Strong Dallas Rental Market

Texas has some of the best colleges in the country. And with the instrumental position held by the University of Texas, Dallas, and Northwestern State University, all students and eventual graduates are going to be in the rental market at some point. According to RentCafe, the average rent for an apartment in Dallas is $1,250, a 4% increase compared to the previous year. 216,192 or 42% of the households in Dallas, TX are renter-occupied while 289,624 or 57% are owner-occupied.

More than 80% of the apartments can be rented for less than $1500. If you buy an investment property in Dallas, there are statistics that there is no shortage of people looking for a place to live here, which means there is no dearth of prospective tenants for your Dallas investment property. The annual vacancy rate of rental properties in Dallas is very low as compared to other cities which is another good reason for investing in the Dallas real estate market.

According to RentCafe, Dallas’s average rent reached $1,270 in April, after a 1.5% increase since last year. Dallas apartment prices are below the national average of $1,417. The average rent for an apartment in Dallas rose slower than in other surrounding cities, such as Arlington ($1,093), where prices went up by 3.9%. Meanwhile, apartment rates in Fort Worth increased by 5%, reaching a $1,196 average.

Flower Mound is the priciest city for renters in the Dallas–Fort Worth area, with apartments renting for $1,599 per month. Frisco and its $1,497 average price are the second most expensive, while Farmers Branch comes in third, with a $1,459 rate. For renters in search of budget-friendly apartments, Greenville's $891 average rent is the cheapest in the Dallas area, followed by Balch Springs's $934 rate. Lancaster rentals are the third least pricey on the list, with a $1,031 average rent as of April.

The Zumper Dallas Metro Area Report analyzed active listings last month across 16 metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Texas one bedroom median rent was $1,116 last month. Frisco ranked as the most expensive city with one bedrooms priced at $1,500 while Arlington ranked as the most affordable city with one bedrooms priced at $1,070.

The best place to buy rental property is about finding growing markets. Cities like Richardson, Plano & Garland are good for investors looking to get started with rental property ownership at an affordable price. These trends provide a macro look at the growing rental demand. Each real estate market has its own unique supply-demand dynamics with unique neighborhoods that present their own opportunities for investors.

These cities look good for rental property investment this year as rents are growing over there.

The Fastest Growing Cities For Rents in DFW (Year-Over-Year)

• Grand Prairie rent was the fastest growing, up 30% since this time last year.
• Plano saw rent climb 24.8%, making it second.
• Irving was third with rent increasing 24.5%.

The Fastest Growing Cities For Rents in DFW (Month-Over-Month)

• Garland had the largest monthly rental growth rate, up 5.5%.
• Irving was second with rent jumping 5.4%.
• Plano was third with rent increasing 5% last month.

Texas Real Estate Market: Investment Opportunities For 2022

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Dallas.

Consult with one of the investment counselors who can help build you a custom portfolio of Dallas turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Dallas.

Not just limited to Dallas or Texas but you can also invest in some of the best real estate markets in 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 and structuring complete Dallas turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

For a majority of investors, buying or selling real estate 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.

Texas is a great market for real estate investing. If you have decided to invest in Dallas, you can either buy a fixer-upper or you may want to buy a Dallas investment property. This market offers a wide range of turnkey investment properties; you just have to find your tenants to rent out the property.

Good cash flow from Dallas investment property means the investment is, needless to say, profitable. On the other hand, a bad cash flow means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Dallas in a growing neighborhood would be key to your success.

When looking for real estate investment opportunities in Dallas or anywhere in the country, the generally accepted standard is to purchase a property that will give you a modest but minimum of 1% profit on your investment. An example would be: at $120,000 mortgage or investment cost, $1200 per month rental. That would be the ideal equation for example. Even with rent increases, buying a $500,000 investment property in Dallas is not going to get you $5000 per month on rent.

The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Dallas investment property and you should be able to get a good return on your investment over the long term.

The neighborhoods in Dallas must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Dallas might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio.

It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals in Class A neighborhoods. The inventory is low, but opportunities are there.  Apart from Dallas, you can also invest in the housing market of Houston. Houston has a track record of being one of the best long-term real estate investments in the U.S. The Houston Real Estate Market forecast is good, and current housing prices are relatively low. The Houston metro area offers great opportunities for investors who are looking for a stable market that offers both cash flow and equity growth at a price that is STILL well below their replacement value.

The next one is the San Antonio real estate market. For those who want to invest in rental real estate, the San Antonio real estate market is an ideal location because of its outsized military presence. Fort Sam Houston is located inside the city limits. Lackland Air Force Base, Randolph Air Force Base, Camp Bullis, and Camp Stanley are located in the immediate vicinity. This means that there is a large population that will almost always rent because they don’t know where they’ll be sent on their next assignment.

San Antonio has a dearth of affordable housing because demand is so much greater than the supply. This has created a large number of renters who need to pay quite a bit to rent apartments or single-family homes. We know there is a lack of housing relative to demand when a balanced market has a 6 month home inventory and San Antonio has only a two-month inventory.

The El Paso real estate market is another hot market to invest in. El Paso real estate market was ranked 4th in Trulia’s hottest real estate markets to watch in 2018. El Paso’s strong job growth, affordability, low vacancy rates, and high population of young households were pivotal in the ranking process. The cost of living in El Paso is lower than the national average, while the cost of housing is well below that of other major metropolitan areas, including Houston and Austin.

The Central, Cielo Vista, and Mesa Hills areas offer more affordable rental properties for sale, while neighborhoods in the northwestern and eastern parts of the metro area have some of the more expensive housing inventory. The amount residents spend on everyday expenses, such as food and transportation, is slightly less than what the average American pays.

The Austin housing market is one hot place to invest in Texas. It isn’t the largest in the state of Texas, but there are several reasons to consider buying real estate in this city. The Austin real estate market has gained a lot of steam, with home values almost doubling since 2010. The Austin real estate market isn’t as big as Dallas, San Antonio, or Houston. One of the long-term strengths of Austin is its diverse economy. The Austin real estate market dipped after the layoffs of the Dot-Com boom. They decided to solve the problem by encouraging medical and biotech employers to relocate to the area, too. As of this writing, there are 85 biotech and pharmaceutical companies in Austin.

Let us know which real estate markets in the United States you consider best for real estate investing! 

REFERENCES

Market Prices, Trends & Forecasts
https://www.texasrealestate.com/market-research
https://www.mymetrotex.com/market-reports
https://www.zillow.com/dallas-tx/home-values
https://www.neighborhoodscout.com/tx/dallas/real-estate
https://www.realtor.com/realestateandhomes-search/Dallas_TX/overview
http://www.homebuyinginstitute.com/news/dallas-forecast-one-of-the-hottest
https://www.zillow.com/research/zillow-hottest-markets-2021-28667/
https://www.zumper.com/blog/dallas-metro-report/
https://www.zumper.com/rent-research/dallas-tx
https://www.rentcafe.com/apartments-for-rent/us/tx/dallas/#rent-report

Foreclosures
https://www.realtytrac.com/statsandtrends/foreclosuretrends/tx/dallas-county/dallas/

Dallas Investment Opportunities
https://www.mashvisor.com/blog/dallas-investment-properties
https://rentberry.com/blog/dallas-investment-opportunities

The Portland housing market is still hot. Despite the economic slowdown caused by the pandemic, the Portland real estate market continues to connect buyers to sellers. Annual sales in 2021 have been on par with or higher than in the previous four years. In December 2021, about 2,582 residential homes in Portland metro area changed hands, according to the latest report by the Portland Metropolitan Association of Realtors®. The median sale price increased by 16.13% from last year to $511,000. Last year's median price was $440,000. There’s a lot of competition among real estate buyers in Portland due to the extreme shortage of available homes for sale.

The Portland market remained competitive in March 2022. While 3,521 new listings were added to the market, the Portland metro area still has a scarcity of homes for sale. In a competitive housing market like Portland, finding a property that meets all of your criteria can take time. If sales continue at the current pace, the 0.7 month of inventory of homes for sale reported at the end of March 2022 indicates that it would take less than four weeks to sell all available homes. When there are four to six months of inventory, a market is considered to be balanced between buyers and sellers.

The median list price of homes in Portland, OR was $536,800, trending up 3.2% year-over-year (source: Realtor.com). The median listing price per square foot was $332. The median sale price was $550,000. Ideally, a buyer would prefer a sale to list price ratio that’s closer to 90% but homes sold for approximately the asking price on average (Sale-to-List Price Ratio: 100%).  Powellhurst-Gilbert is Portland's most affordable neighborhood, with a median listing price of $420,000 ($116,800 less than Portland's median price). Southwest Hills Southwest Hills has a median listing home price of $957K, making it the most expensive neighborhood.

This shows that Portland is a seller's market, which means that there are roughly more buyers than active homes for sale. Sellers benefit from higher buyer turnout and low inventory. Homes in Portland, OR sell after 35 days on the market on average. The trend for median days on market in Portland, OR has gone down since last month, and slightly down since last year. With housing inventory and interest rates at historic lows, both buyers and sellers can benefit from making the move in 2022.

Oregon Housing Market Trends 2022

According to Redfin, the Oregon housing market is not that competitive as only some properties receive multiple offers. On average, homes sell for approximately 1% above the list price and are pending in approximately 36 days. Hot listings can sell for approximately 5% above the list price and become pending in approximately 25 days. Oregon home prices were up 6.7 percent year over year in March 2022, selling for a median price of $374K. In Oregon, homes sell after an average of 32 days on the market, down from 44 days last year.

• Median Sale Price in Oregon is $374,000, +6.7% year-over-year
• Median Days on Market in Oregon is 32, -12 year-over-year.
• Sale-to-List Price is 104%, +2.4 pt year-over-year
• Homes Sold Above List Price = 72.2%, +3.0 pt year-over-year

According to Zillow, the typical value of homes in Oregon is $509,539. This value is seasonally adjusted and only includes the middle price tier of homes. Oregon home prices have gone up 19.7% over the past year. Between March 2020 to March 2021, Oregon home prices have gone up by 11.84%. Between March 2021 to March 2022, Oregon home prices went up by 19.8%. It is quite evident that price appreciation has almost doubled in the last year.

According to Neighborhoodscout, Oregon's median home value is around $429,600. The real estate appreciation rate in Oregon in the latest quarter was 6.18%. In the last twelve months, it has been 20.15%. In the last two years, it has been around 26.15% while the cumulative appreciation rate in the last decade has been around 113.25%. St. Paul, Bend, and Fossil are among the Top ten highest appreciating cities in Oregon since 2000.

Portland Housing Market Trends

Portland is the largest and most populous city in the U.S. state of Oregon and the seat of Multnomah County. The Portland Metropolitan Association of Realtors® has released housing data for the Portland Metropolitan Area for March 2022. Portland is a seller's market, as evidenced by rising prices and declining inventory. Inventory of available residential homes is enough to last for 0.7 months at the current pace of sales. Despite reports of a slowdown, the average time for Portland metro residential properties to be on the market before receiving an acceptable offer dropped to 25 days last month.

• The median sales price was $550,000, an increase from the previous year ($477,000).
• The average sales price was $610,900, an increase from the previous year ($538,200).
• No. of closed sales was 2,683, a decrease from the previous year (2,556).
• No. pending sales were 3,045, a decrease from the previous year (3,346).
• New listings were 3,521, a decrease from the previous year (3,465).
• Months of inventory equaled 0.7, a decrease from the previous year (0.8).
• The average no. of days on the market was 25, a decrease from the previous year (37).

Portland Real Estate Market Forecast 2022 (Latest Predictions)

What are the Portland real estate market predictions for 2022? In 2003, home prices began to grow at a significantly faster annual clip of 14.09% through mid-2006. This incredible growth ultimately proved unsustainable as home prices crashed in 2007, eventually bottoming out in 2012. Since then the Portland MSA has seen a strong average annual growth rate of 9.85%. The hot Portland housing market did cool dramatically for two years. Home price gains have been slowing since 2017. Two years back it saw an annual home price appreciation of nearly 10%. The pandemic has heated the Portland housing market gain.

As of now, Portland is a “seller's market” which means that there exists a limited supply of homes, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers. That's the reason why Portland metro home values have gone up 19.2% over the 12 months and Zillow predicts they will continue to rise at the same pace in the next twelve months. If we look at Zillow's data since the last decade (April 2012), the Portland metro home values have increased by nearly 145.2% and that's despite the market cooling off from 2017 to 2019.

Similar growth has been recorded by NeighborhoodScout.com. Their data also shows that Portland real estate appreciated by nearly 113.86% over the last ten years. Its annual appreciation rate has been averaging at 7.90%. This figure puts Portland in the top 10% nationally for real estate appreciation. During the latest twelve months, the Portland appreciation rate was nearly 16.99%, and in the latest quarter, the appreciation rate was 7.17%, which annualizes to a rate of 31.90%.

These figures also predict that home prices in this region are expected to increase in the next twelve months. Notably, this places Portland among the nation's fastest-growing communities in the most recent quarter and may indicate the city's near-term real estate investment strength.

Here is Zillow's home price forecast for Portland, Multnomah County, and Portland Metropolitan Area. You can expect to see very strong home price gains.

• Portland-Vancouver-Hillsboro Metro home values have gone up 19.2% over the past year (current = $569,065) and the latest forecast is that they will continue to rise in the next twelve months.
• Portland City home values have gone up 13.4% over the past year (current = $588,143) and the latest forecast is that they will continue to rise in the next twelve months.
• Multnomah County home values have gone up 13.3% over the past year (current = $549,531) and the latest forecast is that they will continue to rise in the next twelve months.
• Hillsboro home values have gone up 21.9% over the past year (current = $544,726) and the latest forecast is that they will continue to rise in the next twelve months.

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? The Portland real estate market had strong economic support coming into 2021 from nearly every angle. “Portland does better than average in booms, worse in recessions,” says Portland City Economist Josh Harwood. He expects this to be no different given Portland's exposure to Asia, as they manufacture more things here and are, thus, more dependent on global markets.

While buyer activity continues to be robust, the decrease in the number of active listings indicates that new sellers are still not willing to put their homes on the market until the pandemic or its threat is completely over. Home sales have rebounded since June 2020 but inventory has decreased. With sellers taking their homes off the market, it has led to an inventory crisis. The demand is rising again and the market is going to remain heated over the next twelve months.

In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, the Portland housing market can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s not going to happen. As of March 2022, the month's supply of inventory for the Portland metro area dropped to 0.7 Months. Due to an unprecedented pandemic situation, the Portland housing market would remain a seller's real estate market. This is also confirmed by the recent forecast given by Zillow which favors sellers. Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment.

Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control. Many variables could potentially impact the value of a home in Portland in 2022 (or any other market) such as big changes in the distressed, new-construction, or luxury home segments. There are also a wide variety of economic and political factors that can and do impact real estate markets. Most of these variables are difficult to predict in advance. 

Portland Real Estate Investment: Should You Invest in Portland?

Should you consider Portland real estate investment? Many real estate investors have asked themselves if buying a property in Portland 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. For a long time, we’ve been hearing how the major housing markets in the Pacific Northwest (like Seattle and Portland) have been on fire with fierce competition and a limited supply of properties.  The question is whether Portland would continue to be one of the hottest markets in the U.S. for real estate investment?

Well, the Portland housing market is currently undergoing some changes. Property appreciation had slowed considerably since 2017 but the pandemic has turned things back to the fast pace of appreciation. Portland is a very ethnically diverse large city and home to around 600,000 people. However, the Portland housing market, in reality, includes more than two million people who live in the Portland Metropolitan Area or Greater Portland—comprising Clackamas, Columbia, Multnomah, Washington, and Yamhill Counties in Oregon, and Clark and Skamania Counties in Washington.

The Oregon portion of the metropolitan area is the state's largest urban center. That makes Portland the second largest city in the Pacific Northwest. The real estate trends from 2017 show us that Portland's hot housing market has been cooling off. Despite the slowdown or cooling off, the home prices were still rising but not like three years back. The price rise has mainly been supported by rising incomes as Portland has seen a lot of job growth.

The pandemic has heated the market again. The supply of homes remains low by historic standards. It has reached critically low levels in 2021 leading to a price appreciation forecast of 18% for the next twelve months. Although this article alone is not a comprehensive source to make a final investment decision for Portland, we have collected evidence-based positive things for those who are keen to invest in the Portland real estate market in 2021 or 2022.

Let’s take a look at the number of positive things going on in the Portland real estate market which can help investors who are keen to buy an investment property in this city. And no, we’re not going to cite things like the TV show “Portlandia” or vague things like “it’s hip and diverse!”

Portland is a “Hot” Real Estate Market for Millennials

One of the major factors driving the Portland real estate market is the fact that the city is hot with Millennials. Nor is it just students coming to Portland driving up prices in the Portland housing market. They want to buy homes in a family-friendly, cultural city, something many cannot afford to do in California.

When a city sees people move there for work, this could include everyone from 25-year-old grads to 50-year-old mid-career professionals. The fact that the Portland real estate market is especially attractive to young adults trying to buy houses, means there will be a strong demographic momentum into the future as they start families, increasing the local population and the odds they’ll stay.

Portland Lacks Room to Grow Which Drives The Home Prices Up

One of the beautiful things about Portland is its proximity to the ocean and the mountains, while much of the area is covered in protected forests. The downside of this is that the city lacks room to grow the way many inland real estate markets do. Developers could tear down older buildings and build skyscrapers, but that’s expensive compared to going five miles down the highway and building a new suburban neighborhood.

Relative to the strong migration and income-driven demand, the supply is lagging in the entire Portland MSA. New housing permits have been among the slowest recovering economic indicators in the Portland MSA after bottoming out in 2012. Not only is the Portland MSA producing new buildings at a relatively slow rate, but also fewer homes are
available for sale than ever before.

The relative lack of room to grow keeps rents high in the Portland real estate market for both residents and commercial firms. While Portland residents complain about the rent, Silicon Valley’s insane rents are pricing firms out of San Francisco Bay Area, and enough have moved north to get the area called Silicon Forest. Google’s moved both people and jobs here.

Other tech firms followed suit, opening offices here, or simply relocating. Increased demand for housing guarantees higher rental rates and property values. Considering the affordability problems in San Francisco and Seattle, Portland’s relative cheapness is leading people to migrate from those cities—which has contributed to the population growth of Portland MSA.

Portland’s Relatively Affordable Housing Market

Work-life balance is better in Portland. An estimated 7% of the population in Portland telecommutes compared to 2.6% nationally. The city’s high walkability score and somewhat better traffic than California’s cities are other pluses, though many love the fact you can bike to work. Despite the recent surge in home prices, Portland remains among the cheapest major West Coast cities to buy a house. This is partly because home price levels have historically been lower in Portland than its neighbors, but also because Portland’s growth in home prices is average for these cities since 2010.

Places like San Francisco have had significantly higher rates of growth until 2015. With the combination of a strong job market with relatively lower house prices, Oregon, and the Portland MSA has among the nation’s highest rates of in-migration – which in turn increases the demand for housing. And the music scene and art museums – and the time and money to visit them – and it is no wonder so many Silicon Valley refugees move to Portland. That’s driving up rents and property prices in the Portland real estate market.

Portland's Strong Economic Factors

Two of the most fundamental economic indicators are employment and income. In terms of home prices, income, and employment indicate whether people can afford current and future increases. A report by Northwest Economic Research Center (NERC) forecasts employment in the Portland MSA will continue its strong recovery until reaching the rate of full employment indicating that buyers will continue to enter the housing market (assuming home prices are correctly valued).

Portland may have a growing tech sector, but the overall job market is growing rather quickly, too. Oregon experienced the fifth fastest-growing job market in the country between 2017 and 2018. When you look at only private employers, it came in second. Furthermore, most of those jobs are in big cities like Portland.

For example, when you look at logging and mining – traditional rural employers – Oregon only came in 9th in the U.S. This means many people are moving to Portland for work, whether or not they’re in the tech pool. In short, the wide range of jobs and growth in demand for labor are powering the Portland real estate market.

Portland's Massive Student Market For Rental Property Investment

There are more than three dozen private and public universities within 150 miles of Portland. The University of Oregon and Oregon Institute of Technology both have massive campuses here. Student enrollment for the STEM and IT programs is exploding because graduates are entering the hot tech market created by Silicon Valley refugee firms. This means there is a strong Portland housing market for students in the vicinity of multiple campuses. Compare that to places like College Station, Texas – your property values and rents depend on the attractiveness of the one main school to students.

Portland Rental Market Statistics: The average size of a Portland, OR apartment is 765 square feet. Studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage. The decreasing rents are due to a sudden economic slowdown caused by the pandemic this year. Before the impact of the pandemic, the average rent for an apartment in Portland was $1,499, a 1% increase compared to the previous year, according to RENTCafé.

More than 50% of the apartments can be rented for $1,500 or less while about 26% fall in the range of $1,500 t0 $2,000. 48% of the households in Portland, OR are renter-occupied while 51% are owner-occupied. That makes a huge population of renters. The median rent is close to $2,000 but only 12% of the apartments fall in that price range. The most expensive Portland neighborhoods to rent apartments in are Pearl District, Downtown, and Corbett-Terwilliger-Lair Hill.

As of April 14, 2022, the average rent for an apartment in Portland, OR is currently $1,495. This is an 8% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Portland decreased by -2% to $1,225. The average rent for a 1-bedroom apartment increased by 1% to $1,495, and the average rent for a 2-bedroom apartment increased by 3% to $1,795.

• Two-bedroom apartment rents average $1,795 (a 6% increase from last year).
• Three-bedroom apartment rents average $2,449 (a 9% increase from last year).
• Four-bedroom apartment rents average $2,995 (a 7% increase from last year).

Portland's Better Business Climate

If you ask people and businesses why they relocated to Portland, one answer is the lower cost of living. Oregon is one of only five states in the nation that levies no sales or use tax. State government receipts of personal income and corporate excise taxes are contributed to the State's General Fund budget, the growth of which is controlled by State law. Oregon has property tax rates that are nearly in line with national averages. The effective property tax rate in Oregon is 1.04%, while the U.S. average currently stands at 1.08%.

Oregon is ranked number fifteen out of the fifty states, in order of the average amount of property taxes collected. It is ranked 16th of the 50 states for property taxes as a percentage of median income. Oregon's median income is $73,097 per year. The average home price in Portland Oregon is much lower than the average house cost in nearby cities like Seattle. The median property tax in Oregon is $2,241.00 per year for a home worth the median value of $257,400.00. Counties in Oregon collect an average of 0.87% of a property's assessed fair market value as property tax per year.

The exact property tax levied depends on the county in Oregon the property is located. Oregon's Multnomah County, which encompasses most of the city of Portland, has property taxes near the state average. The county's average effective tax rate is 1.07%. To understand why Portland property taxes go up every year nearly regardless of real estate values, let’s take a quick look at how taxes are usually calculated. The standard way is to multiply the value of your home by the property tax rate for your area of the county—which is estimated by county assessors through in-person inspections and comparisons to similar, recently sold homes.

But Oregon’s system of property taxes was modified by a 1997 bill that uncoupled property taxes from the actual value of homes. Now, Oregon pegs the taxable value of a property to its 1995 property values, plus 3 percent a year thereafter. In 2019, we had a cooling real estate market but now the market conditions are neutral amid the pandemic. That means that your home’s value may stay the same this year, or even go down a little bit, as per the Oregon property taxation system, the value is still going up 3%.

In many areas, real home values have risen much faster but the assessed property value still has a long way to go to catch up to them. The caps have succeeded in keeping property taxes relatively predictable and far lower than if they rose in sync with their home value — the price homeowners could fetch for their house. According to Metro, the current average assessed value of a Portland home is just $231,000. 

In 2019, Oregonlive.com ranked Oregon counties by their effective tax rates — the amount of tax imposed per $1,000 of real market value across the entire county. This is an average, and individual homeowners within those counties might have dramatically different rates. Also, These numbers reflect the previous tax year (2018), the most recent for which figures were available from the Oregon Department of Revenue.

Portland metropolitan area comprises Clackamas, Columbia, Multnomah, Washington, Yamhill Counties in Oregon, and Clark and Skamania Counties in Washington.

In Multnomah County, the average tax rate is $20.12 per $1,000 of assessed value, but the average homeowner is taxed $9.87 per $1,000 of real market value.

In Clackamas County, the average tax rate is $16.00 per $1,000 of assessed value, but the average homeowner is taxed $10.60 per $1,000 of real market value.

In Columbia County, the average tax rate is $13.32 per $1,000 of assessed value, but the average homeowner is taxed $9.40 per $1,000 of real market value.

In Washington County, the average tax rate is $17.07 per $1,000 of assessed value, but the average homeowner is taxed $10.88 per $1,000 of real market value.

In Yamhill County, the average tax rate is $15.21 per $1,000 of assessed value, but the average homeowner is taxed $10.52 per $1,000 of real market value.

Caveat: On Nov. 6, 2018, voters approved a million-dollar general obligation bond to create affordable housing for approximately 12,000 people in the greater Portland region. The total amount to be raised through property taxes is nearly $653 million over 30 years. Due to this property owners in the tri-county Portland area would pay the bond back through higher property taxes over the next 30 years.

In 2019, property taxes to pay for this bond went up by 24 cents per $1,000 in assessed value for Portland homes in each of the three counties. That comes out to about $60 for a home with an assessed value of $250,000. Although the region's average home market value is far higher than $250,000, the average home's assessed value was $231,000 in 2018.

Now coming to its business friendliness, various national surveys put Oregon in the middle of the pack. However, business friendliness is relative. Forbes Magazine came out with an article in mid-2018 describing how California is unsustainable. Infrastructure is crumbling, and they build trains to nowhere instead of roads and dams people need.

It is hard to run a water-dependent industry when they’re rationing water for homeowners soon. We already addressed taxes, but regulations are insane. The new California rule mandating that businesses have at least one woman on the board by the end of 2019 is merely the camel’s nose under the tent; they could start mandating ethnicity-based board membership, union, or employee representation on boards and board membership based on sexuality.

A business could try to solve this by going private, or they can move their headquarters to Oregon. It is certainly easier to move a business and team north to Portland where their salaries go further since the Portland real estate market is so much more affordable.

Portland is Relatively Landlord Friendly – For Small Landlords

There’s an interesting situation in the Portland real estate market. If you own a large apartment building, you’ll find the Portland area difficult to manage because it is so tenant-friendly. A small landlord with a single home for rent, though, is in a different category. People buying and renting out a single home in the Portland housing market will have a much easier time.

They don’t have to follow the same rules on renter protection like rental assistance payments if you evict someone without cause (like you’re going to rehab or sell the property). Rental rates for smaller landlords can go up more in accord with market rates instead of being capped at around 5%. Regardless of how many properties you own, Portland has only discussed rent control – and seen significant opposition to it.

Portland Investment Properties: Where To Invest?

In any property investment, cash flow is gold. The Portland real estate market is booming because the economy is doing well on its own and the area is head and shoulders above California’s deteriorating situation. The Portland housing market has experienced double-digit annual price growth in recent years. Home values rose 11.4% in 2016 alone, according to a report from the real estate data company Clear Capital. The home prices in the Portland, Oregon housing market have slowed considerably over the last few months. And that’s a good thing, from a sustainability standpoint.

Good cash flow from Portland investment property means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Portland in a growing neighborhood would be key to your success. If you invest wisely in Portland's real estate, you could secure your future.

The less expensive the Portland investment property is, the lower your ongoing expenses will be. When looking for the best real estate investments in Portland, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing.

The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Portland might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals in Class A neighborhoods.

Portland home prices are some of the most expensive in all of the United States. According to Realtor.com, there are 90 neighborhoods in Portland. Southwest Hills has a median listing home price of $1.2M, making it the most expensive neighborhood. Lents is the most affordable neighborhood, with a median listing home price of $380K.

Some of the most popular neighborhoods in Portland are Bethany, Southwest Hills, Hazelwood, Multnomah Village, Raleigh Hills, St. Johns, Eastmoreland, Lake Oswego, Laurelhurst, Downtown Portland, Tigard, Alameda, Cedar Hills, Montavilla, Hillsdale, Lents, Woodstock, and Kenton.

We recommend taking the help of the local real estate agents to find neighborhoods with an affordable entry price of homes, high appreciation forecast, and growing rent prices so that as an investor you can enjoy positive cash flow and nice profits. If housing supply meets housing demand, investors should not miss the opportunity since entry prices of homes remain affordable. Find neighborhoods that are most popular among renters.

Here are some of the best neighborhoods for buying Portland investment properties.

Portland’s Downtown is the most popular neighborhood for renters. Portland's compact, walkable downtown offers easy access to great food, green spaces, cultural offerings, and tax-free shopping. It has everything residents could need or want. According to RentCafe, downtown rents are lower than those in some of the more upscale neighborhoods in the city but the average apartment rate still hovers around $1,656, above Portland’s $1,431 average.

Goose Hollow is a neighborhood in southwest Portland, and it borders both the downtown area and Washington Park. Niche.com ranks it #6 in the list of “Best Neighborhoods to Live in Portland.” Living in Goose Hollow offers residents a dense urban feel and most residents rent their homes. There are a lot of bars, restaurants, coffee shops, and parks. Goose

It has a mixture of beautiful historic buildings and modern condos, plus a tried-and-true hub for sports fanatics and college students alike. The public schools are also highly rated. The typical value of homes in Goose Hollow is $418,437, up 1.9% over the past year. Apartments here go for $1,657 on average and the share of renters is about 67%.

University Park is another great neighborhood in Portland for investing in rental properties due to its large student population. It is located in North Portland and is bordered by Linton, Cathedral Park, and St. John's neighborhoods. University Park is home to one of the oldest schools in the area. There are beautiful homes and buildings and old-growth trees that make this a stunning neighborhood as well. It’s an excellent location for those looking to get away from the hustle and bustle of Portland.

According to Realestateagentpdx.com, homes in this neighborhood are more modest than in many other parts of the city, have fewer improvements, and are often cited as being among the least affordable locations in the city. Perfect for first-time homebuyers. The median home value in University Park is $595,190 (Zillow), and home values have gone up 10.5% over the past year.

Pearl District is expensive or a high-end area but the population of renters is more than 70%. It is Portland's most desirable neighborhood with virtually no crime. It features galleries and cultural institutions, as well as stylish shops and acclaimed eateries. It is Portland's top shopping destination. As the neighborhood is the priciest in the city, the apartments here rent for $1,911 on average, according to RentCafe. The typical home value of homes in the Pearl District is $567,114, up 1.0% over the past year.

St. Johns is one of the most popular neighborhoods in Portland for nature lovers. It is a nature lover’s paradise, located in North Portland, on the western tip of the peninsula formed by the convergence of the Willamette and Columbia Rivers. St. Johns is described by locals as “extremely friendly.” It has several parks including Cathedral Park, Columbia Slough, Kelley Point Park, and Smith and Bybee Wetlands. All are within walking distance of residents. Like much of Portland, this is also an up-and-coming neighborhood that it’s still developing,

The typical home value in St. Johns is $558,348 (Zillow), and home values have gone up 22.6% over the past year. The average rent in St. Johns is $1,359 (RentCafe), below both the national and city averages.

Here are the ten neighborhoods in Portland having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

1. Downtown East
2. Downtown North
3. Humboldt
4. Overlook
5. Overlook North
6. Arbor Lodge
7. King
8. Humboldt North
9. Kenton East
10. Concordia

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 has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Portland.

Consult with one of the investment counselors who can help build you a custom portfolio of Portland turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Portland.

Not just limited to Portland or Oregon but you can also invest in some of the best real estate markets in 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 and structuring complete Portland turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Apart from Portland, you can also invest in many other real estate markets which are equally good for investors. Bend is a small city in Oregon. It is nestled on the edge of the Cascade Range and the shore of the Deschutes River. It is a verdant spot in the High Desert. It sounds like a wonderful place to visit. Home prices in the Bend real estate market have gone up by 5.7% over the past year. The median home value is $475,132.

Oregon is bounded to the north by Washington state, from which it receives the waters of the Columbia River; to the east by Idaho, more than half the border with which is formed by the winding Snake River and Hells Canyon; to the south by Nevada and California.

If you head to the south, go for the Las Vegas real estate market. It is as hot as the desert heat in Nevada. Las Vegas is in the top 10% nationally for real estate appreciation. Las Vegas real estate has appreciated by 99.29% over the last 10 years. The Las Vegas real estate market is entirely brimming with new businesses. It isn’t just about casinos, medicine is a growing industry as well.

The University of Las Vegas and Zappo’s, the internet shoe store, is also based in Vegas. Its friendly business environment is propping up the economy and helping towards the positive Las Vegas real estate trends. The new businesses are propping up at a much faster rate than the national average.

Investing in a Las Vegas Property is a great option as Las Vegas has very low investment property taxes and no personal income tax. The average effective property tax in Las Vegas (Clark County) is 0.70%, slightly higher than the statewide average, but still significantly lower than the national average. The state’s average effective property tax rate is just 0.69%, which is well below the national average of 1.08%.

If you choose the nearby state of Washington, then we'd recommend the Spokane real estate market. Spokane is the second-largest city in Washington State. It is sited on the Spokane River in the foothills of the Rocky Mountains. The population of Spokane is around two hundred thousand. However, the Spokane real estate market includes the broader metropolitan area that is home to nearly 600,000 people. There is a high housing demand in the market and the current supply equals 1.2 months. The median home value in Spokane is $264,212 and home values have gone up 13.1% over the past year.

Let us know which housing markets you consider hot for real estate investing?

Please do not make any real estate or financial decisions based solely on the information found within this article. Some of 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. This article aimed to educate investors who are keen to invest in Portland real estate. Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and taking the help of a real estate investment counselor.

References:

Market Data, Reports & Forecasts
https://pmar.org/shareables/
https://www.oregonlive.com/
https://realestateagentpdx.com/category/portland-real-estate-market-news
https://www.littlebighomes.com/real-estate-portland-or.html
https://www.realtor.com/realestateandhomes-search/Portland_OR/overview

Impact of Covid-19 & Recovery
https://realestateagentpdx.com/portland-real-estate-market-spring-2020-covid-19-update/17320
https://www.oregonlive.com/realestate/2020/06/portland-area-housing-market-pending-sales-new-listings-surge-in-may.html

Rental Statistics for apartments
https://www.rentcafe.com/average-rent-market-trends/us/or/portland/
https://www.rentjungle.com/average-rent-in-portland-or-rent-trends/

Best Neighborhoods
https://www.neighborhoodscout.com/or/portland/real-estate
https://www.rentjungle.com/portland-or-apartments-and-houses-for-rent/
https://www.rentcafe.com/blog/apartment-search-2/neighborhood-guides/portlands-best-neighborhoods-for-renters/

Foreclosures
https://www.realtytrac.com/statsandtrends/or/multnomah-county/portland

Oregon Tax Rates & Way of Computing
http://www.tax-rates.org/oregon/property-tax
https://smartasset.com/taxes/oregon-property-tax-calculator
https://realestateagentpdx.com/portland-property-taxes-to-rise-in-2020/16247
https://www.oregonlive.com/news/erry-2018/10/7273fa75401636/property-tax-rates-in-oregons.html

Top Reasons to Invest in Portland
https://www.entrepreneur.com/article/273822
https://www.oregonbusiness.com/article/item/16045-is-oregon-good-for-business
https://www.cnbc.com/2015/05/14/water-millennials-drive-portland-oregon-housing.html
https://www.oregonlive.com/politics/index.ssf/2017/02/portlands_tina_kotek_explains.html
https://www.oregonlive.com/portland/index.ssf/2014/07/how_friendly_is_oregon_portlan.html
https://www.pdx.edu/nerc/sites/www.pdx.edu.nerc/files/The%20State%20of%20the%20Portland%20Housing%20Market.pdf
https://www.business2community.com/brandviews/upwork/why-silicon-valley-techies-are-rushing-to-the-pacific-northwest-02076366
https://www.forbes.com/sites/thomasdelbeccaro/2018/04/19/the-top-four-reasons-california-is-unsustainable/#6f1366cd3a23
https://www.portlandmercury.com/news/2018/01/24/19626335/portlands-small-time-landlords-dont-have-to-follow-renter-protections

This article has been updated to reflect recent changes in the Minneapolis real estate market due to the coronavirus pandemic. We'll be discussing the housing market trends for the Twin Cities Metro Area in 2022. Our focus for real estate investment would be the Minneapolis housing market—the entire twin city metro area—and we shall also share the top reasons to invest in this region.

Minneapolis–Saint Paul is a major metropolitan area and is commonly known as the Twin Cities after its two largest cities—Minneapolis and Saint Paul. They’re separated by the Mississippi River. The waterfront is home to many cultural landmarks and coveted waterfront real estate. The Twin Cities housing market remains strong, with the median price reaching $353,000 in March.

The Twin Cities metro area set a new record median sales price of $353,000, according to new data from the Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, a 7.5 percent increase from March 2021. Despite the fact that this is the first time the metro-wide median price has surpassed $350,000, the rate of increase is 30.0 percent lower than it was a year ago. The ongoing inventory shortage is primarily to blame, though the 12.0 percent decline in housing inventory in March was far less than the 43.0 percent decline in March of last year.

Given a chronically undersupplied market with strong demand, home prices are expected to rise further, albeit at a slower pace. Buyers spend approximately $200 per square foot on average. The Twin Cities currently has about four weeks' worth of inventory (0.9 months), whereas a balanced market has four to six months' worth. However, over a decade of underbuilding has resulted in fierce competition for the majority of listings.

Despite lower inventory levels, there are signs that supply is beginning to stabilize. Sellers listed 6,416 homes on the market last month, 4.8 percent fewer than in March 2021 but 4.2 percent more than in 2019. Buyers signed 9.2 percent fewer purchase agreements and closed on 10.4 percent fewer homes in March of this year than in March of last year. The declines are due in part to the exceptional strength of the 2021 market, but they could also be a reaction to rising mortgage rates.

Minnesota Housing Market Trends 2022 (Entire State)

According to new data from realtors, days on the market decreased as the median price increased due to the scarcity of inventory. Housing demand continues to outstrip supply in the entire state, and sales prices have reached all-time highs. Minnesota Realtors released March 2022 data, stating that the state's median sales price increased by 9.2 percent to $322,000. Below is the latest report of the “Minnesota Housing Market” by Minnesota Realtors®.

The report shows the residential real estate activity of the entire state of Minnesota, composed of single-family properties, townhomes, and condominiums combined. Percent changes are calculated using rounded figures. Affordability also continued to drive the residential real estate market throughout Minnesota. Fueled by high-interest rates for home mortgages, the Affordability Index, a measure of housing affordability, declined by 20% in March. March saw a slowdown in the Minnesota real estate market, with closed sales down 8.4% compared to March 2021.

Minnesota Housing metrics that increased year-over-year:

• Median Sales Price + 9.2%
• Avg. Sales Price + 8.4%
• Pct. of Orig. Price Received + 0.8%

Minnesota Housing metrics that decreased year-over-year:

• New Listings – 5.8%
• Pending Sales – 12.2%
• Closed Sales – 8.4%
• Days on Market – 11.9%
• Affordability Index – 20.3%
• Homes for Sale – 10.7%
• Months Supply – 9.1%

Minneapolis–Saint Paul Housing Market Trends 2022 (Describes Twin Cities)

We shall now discuss some of the most recent housing trends in Minneapolis–St. Paul–Bloomington MN-WI metropolitan area. The area is commonly known as the Twin Cities after its two largest cities, Minneapolis, the most populous city in the state, and its neighbor to the east, Saint Paul, the state capital. With a strong economy and low mortgage rates, buyer activity was very strong last year. Supply and demand continued to favor sellers leading to a rise in prices.

In the 16-County metro area surrounding the Twin Cities, where the housing market has been particularly hot, the number of closed sales fell 10.4 percent to 3,934 in March as compared to last year.

• In March 2022, the number of new listings in the Twin Cities decreased by 4.8 percent to 6,416.
• The average number of days on the market decreased by 10.3% to 35 days.
• Price Per Square Foot increased 10.2% to $$205.
• The median sales price increased 7.5% to $353,000.
• The average sales price increased 7% to $409,754.
• Months Supply of Inventory decreased by 10% to 0.9 months.

Additional findings for the “16-County Twin Cities Housing Market” include the following. The source of this report is the Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®. The report compares the key housing metrics from March 2022 with March 2021.

Minneapolis Housing Market Trends (Describes City's Housing Stats)

The median list price of homes in Minneapolis, MN was $319K in March 2022, trending up 1.3% year-over-year, according to Realtor.com The median listing price per square foot was $201. The median sale price was $331.8K. The Sale-to-List Price Ratio is 100.04%, which means that on average, homes in Minneapolis, MN sold for close to the asking price in March. Minneapolis was a seller's market, which means the total sales to total listings ratio was above 0.2.

It also means that there are more people looking to buy than there are homes available Below is the latest report of the “Minneapolis Housing Market.” The source of this report is the Minneapolis Area REALTORS®. The report compares the Minneapolis housing metrics from March 2022 with March 2021.

Saint Paul Housing Market Trends 2021 (Describes City's Housing Stats)

According to Redfin, a real estate company, the St. Paul housing market is somewhat competitive. In March 2022, St. Paul home prices were up 5.2% compared to last year, selling for a median price of $263K. On average, homes in St. Paul sell after 20 days on the market compared to 20 days last year. There were 344 homes sold in March this year, down from 349 last year. Hot homes can sell for about 8% above the list price and go pending in around 7 days.

Below is the latest report of the “St. Paul Housing Market” released by the Minneapolis Area REALTORS®. The report compares the St. Paul housing metrics from March 2022 with March 2021.

Minneapolis Metro Area Real Estate Market Forecast 2022

The Minneapolis housing market is shaping up to continue the trend of the last few years as one of the hottest markets in the United States. It is also one of the hottest real estate markets for investing in rental properties. What are the Minneapolis real estate market predictions for 2021 & 2022? Let us look at the price trends recorded by Zillow over the past few years. Since the last decade (May 2012), the typical home value in the Minneapolis-St. Paul-Bloomington Metro has appreciated by about 101.6% (Zillow Home Value Index).

Minneapolis metro area home values have gone up by 12.3% over the past year alone. There exists a limited supply of homes in Minneapolis, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers. In other words, based on the last month’s key housing market indicators, the demand is exceeding the supply, giving sellers an advantage over buyers in price negotiations. There are fewer homes for sale than there are active buyers in the marketplace.

• The typical home value of homes in Minneapolis-St. Paul-Bloomington Metro is $369,107, up 12.3% over the past year.
• Home prices will continue to rise in the next twelve months.
• Minneapolis home values have gone up 5.9% (current = $338,040) over the past year and will continue to rise in the next twelve months.
• Saint Paul's home values have gone up 9.3% (current = $290,074) over the past year and will continue to rise in the next twelve months.
• Bloomington home values have gone up 8% (current = $356,831) over the past year and will continue to rise in the next twelve months.

The real estate activity continues to strengthen in the Twin Cities region in this peak home-buying season. Limited inventory pushes the median price over $350,000 as the spring market heats up. Supply is down during the worst inventory shortage in decades. Median Sales Price reaches a record $353,000. Median days on market are up marginally compared to the frenzy of 2021.

In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Minneapolis, or the entire twin cities housing market can become a buyer’s real estate market if the supply increases to more than five months of inventory. In any case, that isn't going to happen, at least not in the next twelve months.

This region (and entire Minnesota) is very much skewed to sellers due to a persistent imbalance in supply and demand. Thus, the housing inventory continues to be constrained during what is expected to be an active summer selling season. This will push the home prices up at a faster pace.

The mortgage rates are hovering around 5%. If buyer demand eases, we could see a positive influence on the low inventory of the Twin Cities region while at the same time seeing a negative impact on sales. Also, if listings linger on the market for longer, buyers have a special edge in negotiating sales prices.

As a result, buyers who enter the market at this should have more options than usual when it comes to choosing a property. So they should take advantage of scooping up their favorite deals which otherwise are taken away by seasoned investors in the bidding wars. Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment.

Please do not make any real estate or financial decisions based solely on the information found within this article. Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Many variables could potentially impact the value of a home in Minneapolis in 2022 (or any other market) and some of these variables are impossible to predict in advance. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control.

Minneapolis Real Estate Investment: Is It A Good Place For Investment?

Now that you know where Minneapolis is, you probably want to know why we’re recommending it to real estate investors. Is Minneapolis a Good Place Real Estate 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 Minneapolis housing market forecast for answers on why to put resources into this market.

Let’s talk a bit about Minneapolis and the surrounding metro area before we discuss what lies ahead for investors and homebuyers. With a population of roughly 3.5 million, Minneapolis is the 16th largest metropolis in the United States. This city by the water is known for great cultural organizations that draw a diverse array of residents interested in the performing arts, theatre, music, and writing. Six Fortune 500 companies make their headquarters within the city limits of Minneapolis including Target and Pepsi Americas.

Minneapolis by itself is home to more than four hundred thousand people, making it the largest city in the state of Minnesota and the larger of the Twin Cities. The Twin Cities metro area includes more than three and a half million people, making it the sixteenth largest metro area in the U.S. and the third largest in the Midwest. But unlike much of the Rust Belt, Minneapolis is going strong. This is but one reason to take another look at the Minneapolis housing market.

If you are a home buyer or an investor in the Twin Cities real estate market, you'd know that it has a track record of being one of the best long-term real estate investments in the U.S. over the last ten years or so. In fact, in the Midwest United States, the Minneapolis housing market ranks highest when it comes to a positive market outlook. Inventory is a significant problem throughout Minnesota. The twin city metro area is a strong seller's market due to a persistent shortage of housing supply.

Minneapolis has a mixture of owner-occupied and renter-occupied housing. One or two-bedroom single-family detached homes are the single most common housing type in Minneapolis, according to Neighborhoodscout.com. Other types of housing that are prevalent in Minneapolis include large apartment complexes or high-rise apartments ( 39.84%), duplexes, homes converted to apartments or other small apartment buildings ( 13.14%), and a few row houses and other attached homes ( 3.90%).

Single-family detached homes account for roughly 42.25% of Minneapolis's housing units. At the national level, single-family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single-family rental units. With 2020 being, theoretically, in the middle of a boom, there are still 4 years for residential construction to surge. Most likely, a housing shortage will remain in 2020, keeping home prices high.

In 2016 Minneapolis had moved into the top 20 emerging real estate markets in the country. It is one of the best places in the Midwest U.S. to invest in real estate. Minneapolis real estate has appreciated 94.74% over the last ten years, which is an average annual home appreciation rate of 6.89%, according to NeighborhoodScout.com. This puts Minneapolis in the top 20% nationally for real estate appreciation. Looking at just the latest twelve months, Minneapolis real estate appreciation rate has been at 16.94, which is lower than appreciation rates in most communities in America.

The home prices in the Minneapolis housing market will be on an upswing all through 2022. In the latest quarter, NeighborhoodScout's data show that house appreciation rates in Minneapolis were at 6.63%, which equates to an annual appreciation rate of 29.27%. So you should consider investing in Minneapolis rental properties sooner, to avoid higher home prices down the road. Let’s take a look at the number of positive things going on in the Minneapolis real estate market which can help investors who are keen to buy an investment property in this city.

Minneapolis' Strong Job Market

We touched on the strong Minneapolis job market. The Twin Cities job market has been revived by a wave of jobs in the life sciences, biotechnology, and medicine. This has helped to give workers in Minneapolis an average annual salary of six thousand dollars higher than the national average. The city even made a “The Ladders” list for cities with the most $100,000 plus jobs. That fuels the demand for the Minneapolis rental properties at the more expensive end of the market. Yet their location on the Mississippi River and other transit routes contribute to a diverse job ecosystem, where employers like 3G and General Mills maintain manufacturing and food processing hubs. People move here from across Minnesota in search of work, since their unemployment rate is consistently one full percentage point lower than the national average.

Minneapolis' Strong Demand for Housing

Housing markets can be large and declining – Detroit being a shining example, Minneapolis is notable for being a growing city, driving demand for properties in the Minneapolis real estate market. The population growth is driven by both migrations to the area by those seeking jobs and demographic momentum. This is why the Minneapolis housing market is expected to see home price appreciation this year despite the ongoing pandemic. The month's supply of housing inventory in Minneapolis, the twin cities region, and the entire state of Minnesota is very tight. This entire region is a strong seller's real estate market.

One of the defining features of older Rust Belt cities is that they’ve been heavily built up for decades. In the case of the Minneapolis housing market, geography and existing construction constrain the new housing supply. They can’t build on water or build out in the direction of St. Paul. The city already has suburbs, but people don’t want to move too far out from the urban core where most jobs exist. This forces builders to tear down old buildings to bring new, denser development to the Minneapolis housing market. That is more expensive than building new homes on the farmland. All of this constrains new construction. It also explains why many houisng experts think home prices will rise in the next twelve months.

The Minneapolis Rental Market is Growing

The median sales price in Minneapolis is around $305,000 as of June 2020. It means you can buy several properties in the Minneapolis housing market for the cost of one home in a “hot” market like San Francisco or Los Angeles. The median rental price in Minneapolis is roughly $1,800. This is higher than the Minneapolis metro area rental rate of $1700. Given the appreciation seen in the Minneapolis real estate market, we can expect rental rates to increase faster than the rate of inflation because new construction isn’t going to meet demand.

The Minneapolis real estate market is affordable compared to several booming rental markets across the country. However, the fact remains that the rental market in Minneapolis is growing. Many would-be homebuyers cannot afford to buy their first home, so they have to rent. Students who stay to work compete with economic migrants and the children of locals.

Compounding the matter are the Millennials who watched parents lose homes in the 2007 housing bust and choose to rent though they could afford a home. This explains why the city’s share of the population rent prices are growing. 55% of the households in Minneapolis, MN are renter-occupied while 44% are owner-occupied. And this trend will fuel demand for Minneapolis rental properties for years to come. More than 50% of the apartments can be rented for $1,500 or less.

Current Rental Statistics: As of Mat 1, 2022, the average rent for a 1-bedroom apartment in Minneapolis, MN is currently $1,175. This is a 2% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Minneapolis decreased by -4% to $1,050. The average rent for a 1-bedroom apartment decreased by -2% to $1,175, and the average rent for a 2-bedroom apartment decreased by -1% to $1,695.

• The average rent for a 2-bedroom apartment in Minneapolis, MN is currently $1,695, a 3% increase compared to the previous year.
• The average rent for a 3-bedroom apartment in Minneapolis, MN is currently $1,950, a 4% increase compared to the previous year.
• The average rent for a 4-bedroom apartment in Minneapolis, MN is currently $2,250, a 2% decrease compared to the previous year.

According to RENTCafé,  the average size for a Minneapolis, MN apartment is 786 square feet, but this number varies greatly depending on unit type, with cheap and luxury alternatives for houses and apartments alike. Studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage.

The most affordable neighborhoods for renting in Minneapolis are:

• Como, where the average rent goes for $595/month.
• Folwell, where renters pay $795/mo on average.
• Webber – Camden, where the average rent goes for $830/mo.
• University, where the average monthly rent is $468.

The Zumper Minneapolis Metro Area Report analyzed active listings last month across 5 metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Minnesota one bedroom median rent was $1,140 last month. Maple Grove was the most expensive city with one bedrooms priced at $1,490 while St Paul & Roseville were the most affordable cities with one bedrooms both priced at $1,100.

The best place to buy rental property is about finding growing markets. Cities like Maplewood, St. Paul, and Roseville are good for investors looking to get started with rental property ownership at an affordable price. These cities look good for rental property investment this year as rents are growing over there. These trends provide a macro look at the growing rental demand.

Each real estate market has its own unique supply-demand dynamics with unique neighborhoods that present opportunities for investors. Here are the best areas to invest in a rental property in the Minneapolis Metro Area in 2022. Most of these places have the same things in common, including rising rents and increasing property values.

The Fastest Growing Cities For Rents in Minneapolis Metro Area (Y/Y%)

• Roseville had the fastest growing rent, up 2.8% since this time last year.
• Maple Grove was second with rent climbing 1.4%.

The Fastest Growing Cities For Rents in Minneapolis Metro Area (M/M%)

• Maple Grove rent increased 2.1% last month, making it the fastest growing.
• Roseville was second with rent climbing 0.9%.

The Massive Student Market

Any university creates an excellent opportunity for real estate investors. Every college brings in a large number of students who will need to rent a property close to the university. The rent students pay is based on demand for the school, not the state of the local economy. For investors targeting this niche, Minneapolis rental properties are a great addition to your investment portfolio because of the diverse opportunities this market provides. Because of the university, there are lots of students and activities and venues that specifically cater to the student population.

There are many colleges in Minneapolis itself. The University of Minnesota campuses in the area are some of the largest public university campuses in the US. Augsburg College hosts more than three thousand students. Smaller arts and technical colleges dot the town. Because so many colleges are in the middle of the city, downtown Minneapolis rental properties could be advertised to students at several schools. Then, if the local college of arts and design closes, you don’t have to worry about who else may rent the units.

The University area is very popular with young people and provides not only great nightlife and entertainment but plenty of parks and recreational facilities to enjoy during the day. Housing, from houses for rent to apartments and condos are affordable and near inexpensive restaurants, bars, cafes, and bookstores.

The Landlord-Friendliness of Minneapolis

Many states in the Midwest are more tenant-friendly than landlord-friendly. The Minneapolis housing market, though, is more landlord-friendly. There are limits on late fees, and interest is required on deposits. However, no rental license is required by the state, and there isn’t a grace period set in stone for late rental payments. You can protect your income from Minneapolis rental properties by evicting tenants not only for nonpayment of rent but committing illegal acts on the premises, staying after the lease has ended, and breaching the lease. Just make sure the lease agreement says what actions constitute a breach of lease for which they could be evicted.

The (Relatively) Low Taxes in Minnesota

Houses in Minnesota face an average 1.19% property tax rate. This is very close to the national average of 1.21%. Wisconsin’s tax rate is in this same range, but their higher average property values mean they pay far more in property taxes than those in the cheaper Minneapolis real estate market. Minnesota’s reputation as a high tax state is driven by its higher sin taxes on alcohol and cigarettes and higher than the average sales tax rate. Neither of these affects most real estate investors. Its income taxes are thirteenth highs in the U.S., but it is a bargain compared to states like Illinois. Then again, Illinois has the second-highest property taxes in the country.

The Upward Long-Term Trajectory

Both Wisconsin and Minnesota are seeing growth while much of the Rust Belt deteriorates. However, Minnesota’s policies have led to faster job growth, wage growth, and population growth than Wisconsin. Yet the state has continued to rank well in rankings for quality of life. That makes the Minneapolis real estate market a better deal than the property is theoretically more business-friendly Wisconsin.

Maybe, you have done a bit of real estate investing in Minneapolis or the twin cities region but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Should you consider Minneapolis real estate investment? Minneapolis offers an ideal mix of a strong job market, affordable real estate, a large rental market, and a limited housing supply. These factors will drive up property values and rental rates growing at a healthy clip for years. The entire twin cities region is a great place to invest in real estate.

Good cash flow from Minneapolis rental property means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Minneapolis in a growing neighborhood would be key to your success. When looking for real estate investment opportunities in Minneapolis or anywhere in the country, the generally accepted standard is to purchase a property that will give you a modest but minimum of 1% profit on your investment. An example would be: at $120,000 mortgage or investment cost, $1200 per month rental. That would be the ideal equation for example. Even with rent increases, buying a $500,000 investment property in Minneapolis is not going to get you $5000 per month on rent.

When looking for the best real estate investments in Minneapolis, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Minneapolis might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals in Class A neighborhoods.

There are about 699 schools in Minneapolis—231 elementary schools, 176 middle schools, 202 high schools, and 90 private & charter schools. The Minneapolis school system offers a wide range of school choices, from charter schools to great public schools, to those specializing in STEM education. There are 264 neighborhoods in Minneapolis.

Some of the best or popular neighborhoods in Minneapolis are Calhoun-Isles, Camden, Northeast Park, Powderhorn, and Downtown East. Camden is located in the north corner of the city, on the east bank of the Mississippi, is composed of several small neighborhoods. It is one of Minneapolis' most diverse neighborhoods. There's a great mix of middle and working-class families and housing is rated as affordable.   Northeast Park is becoming popular with young people, provides affordable housing options for every budget. The area has a variety of residential areas, industrial areas and old mills, historic churches, established and new retail areas.

Here are the top neighborhoods in Minneapolis having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

1. Downtown East
2. Ventura Village
3. Central Minneapolis East
4. Elliot Park South
5. Lyn-Lake
6. Powderhorn Northwest
7. Powderhorn North
8. Powderhorn West
9. Logan Park
10. St. Anthony East

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 has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Minneapolis and the Twin Cities region.

Consult with one of the investment counselors who can help build you a custom portfolio of Minneapolis turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Minneapolis.

Not just limited to Minneapolis or Twin Cities of Minnesota but you can also invest in some of the best real estate markets in 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 and structuring complete Minneapolis turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

The state shares a Lake Superior water border with Michigan and Wisconsin on the northeast. You can also invest in the Milwaukee, Wisconsin real estate market. Milwaukee is often written off as a rust belt city in decline. While it is an urban Midwest town that started to decline in the 1970s, it is seeing a kind of renaissance. Milwaukee metropolitan area is home to around 600,000 people. It hit its high of around 750,000 people in the 1960s before the population declined, but it is now a slow-growing city. The Milwaukee housing market is only going to see demand for homes grow as many Millenials continue to find work and try to start their own families. The area is attracting young adults, too, with 80% of those moving to the area saying it is because they came for a job.

Madison, Wisconsin is also good for real estate investment. Madison is often overlooked in favor of the largest city in Wisconsin, Milwaukee. Yet the city is both the state capitol and the second largest in the state. Madison, Wisconsin is home to roughly a quarter of a million people. However, the Madison housing market is much larger than this. Take suburbs into account, and the metro area is home to roughly 650,000 people. This metropolitan region is so large that it extends into parts of Iowa. There are many reasons to consider investing in Madison real estate.

To the south of Minnesota lies the neighboring state of Iowa. Davenport is a mid-sized real estate market in Iowa, home to around a hundred thousand people. However, Davenport is part of a larger ‘Quad Cities Metropolitan Area' that includes Davenport and Bettendorf in Iowa, and Rock Island, Moline, and East Moline in Illinois. Davenport is the third-most-populous city in Iowa. The Quad Cities region has a robust housing market, depending on which side of the river you land. There are several good reasons to invest in the Davenport Iowa real estate market.

Let us know other than the Twin Cities region which housing markets you consider best for real estate investing!

Remember, caveat emptor still applies when buying a property anywhere. Some of 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:

Market Reports & Forecasts
https://www.mplsrealtor.com/
http://maar.stats.10kresearch.com/reports/lmu
https://www.mnrealtor.com/buyers-sellers/marketreports
https://www.zillow.com/Minneapolis-mn/home-values
https://www.littlebighomes.com/real-estate-minneapolis.html
https://www.realtor.com/realestateandhomes-search/Minneapolis_MN/overview
https://www.neighborhoodscout.com/mn/minneapolis/real-estate

Foreclosures
http://maar.stats.10kresearch.com/docs/fss/2020-06/x/report?src=page
https://www.realtytrac.com/statsandtrends/mn/hennepin-county/minneapolis

Job Growth
https://realestate.usnews.com/places/minnesota/minneapolis-st-paul/jobs
https://www.theladders.com/career-advice/these-are-the-15-cities-with-the-most-100k-jobs-in-december-2018
https://www.jsonline.com/story/news/politics/2018/05/08/its-liberal-minnesota-vs-gop-wisconsin-study-economic-growth/590813002

Rental market | Landlord friendly
https://www.collegesimply.com/colleges-near/minnesota/minneapolis
https://www.avail.co/education/laws/minnesota-landlord-tenant-law
https://www.landlordology.com/10-cities-to-buy-rental-property
https://www.minnpost.com/economy/2018/02/why-it-s-extremely-difficult-buy-first-home-minnesota-right-now
https://www.minnpost.com/metro/2019/03/a-majority-of-minneapolis-households-now-rent-their-homes

Low Taxes
https://smartasset.com/taxes/minnesota-property-tax-calculator
https://www.usatoday.com/story/money/taxes/2018/04/06/states-highest-and-lowest-taxes-3-6/48294400

How is The Housing Market in Montgomery, Alabama?

Montgomery Alabama Real Estate Market is hot in 2022. It is a good cash-flow market due to the strong demand for rental housing. And this is not entirely due to the 8 or more colleges and universities in the city. The cost of living in Montgomery is lower than the U.S. average while there are a number of good-paying jobs in the area. 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

The median sales price in the Montgomery area was $215,000 in March 2022, an increase of 10.8% from one year ago and an increase of 5.5% from February, according to the Montgomery Area Association of REALTORS. The median home sale price — is the midway point of all the houses or units sold over a period of time. It offers a more accurate view of what's happening in a market. There is an acute shortage of inventory in the Montgomery area housing market. At the current sales pace, all the active inventory on the market would sell in just 1 month.

According to the quarterly report published by Alabama Center for Real Estate (ACRE), Montgomery residential sales for the first quarter of 2022 totaled 1,359 units, representing a decrease of 1.3% when compared to1,377 units that were sold in the first quarter of 2021. The median sales price in Montgomery for the first quarter of 2022 was $206,292, a 7.8% increase from the first quarter of 2021's median sales price of $191,445.

The average number of days on the market in the first quarter of 2022was 54, representing a decrease of 34.8% from 83 days on market in the first quarter of 2021. The residential units available for sale in the first quarter of 2022 decreased by 29.2% 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 1.1 months, down 30.6%. The market is considered to be in balance at approximately 6 months of housing supply.

Montgomery Alabama Housing Market Trends 2022 (Monthly)

Sales: According to the Montgomery Area Association of REALTORS, March home sales in the area decreased 8.4% year-over-year (Y/Y) from 581 to 532 closed transactions. Following seasonal trends, sales increased 23.7% from February. Sales are now down 1.3% year-to-date.

Pricing: Montgomery Alabama real estate market trends show a 10.8% year-over-year rise in median sales price based on 532 home sales. The median sales price in March was $215,000, an increase of 10.8% from one year ago and an increase of 5.5% from February. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.

Inventory: March listings (526) increased 9.4% from February and declined 18.6% from one year ago. At the current sales pace, all the active inventory on the market would sell in 1.0 months, down from 1.1 months in February and down from 1.1 months in March 2021. Homes sold in March averaged 48 days on the market (DOM), 32 days faster than March 2021.

Forecast: March sales were 31 units, or 5.5%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 563 sales for the month, while actual sales were 532 units. ACRE forecasted a total of 1,417 residential sales year-to-date, while there were 1,359 actual sales through March, a difference of 4.1%.

New Construction: The 60 new homes sold represented 11.3% of all residential sales in the area in March. Total sales decreased 27.7% year-over-year. The median sales price in March was $364,091, an increase of 19.5% from one year ago and an increase of 3.2% from February. New homes sold in an average of 63 days, 24 days faster than March 2021.

For all Montgomery-area housing data, click here.

Montgomery Alabama Housing Market Forecast

Some of the lowest real estate appreciation rates in the country over the last ten years have been in Montgomery, where house values have increased just 20.54%, which is an annualized rate of 1.89%. This rate is lower than the appreciation rate found in 90% of the cities and towns in America. Over the last year, Montgomery's appreciation rates have trailed the rest of the nation.

In the last twelve months, Montgomery's appreciation rate has been 14.33%, which is lower than appreciation rates in most communities in America. In the latest quarter, NeighborhoodScout's data show that house appreciation rates in Montgomery were at 7.52%, which equates to an annual appreciation rate of 33.63%.

According to Zillow.com, the typical home value in Montgomery County is $138,826. Montgomery County home values have gone up 20.7% over the past year and 34.78% over the past decade (since May 2012). Similarly, the typical value of homes in the Montgomery MetroMontgomery Metrohousing market is $178,769, up 17.4% over the past year and 46.5% over the past decade. The Montgomery, Alabama Metropolitan Statistical Area (commonly known as the Tri-Counties or the River Region) is a metropolitan area in central Alabama.

The current housing demand: According to Realtor.com, the median listing home price in Montgomery County, AL was $169.9K April 2022, flat year-over-year. The median listing home price per square foot was $97. Montgomery County has affordable townhomes and affordable condos. There are 6 cities in Montgomery County where Realtor.com has active listings. Cecil has a median listing home price of $495K, making it the most expensive city. Montgomery is the most affordable city, with a median listing home price of $160K.

Montgomery Real Estate Investment Overview

The Montgomery Alabama real estate stands out for its affordable properties, relatively high rents, and numerous opportunities for deals. The relative breadth of its student housing market is remarkable given its small size. Here are some of the reasons to consider investing in Montgomery real estate.

A Big Student Market

Student housing offers stable income and better than average returns. Students care as much or more about safety, walking distance to school, and amenities than they do price. This is why cap rates for properties within half a mile of campus are so low; they rarely come on the market, and when they do, there is a bidding war. Investment opportunities do exist in older student housing that can be renovated and now rented out at a premium.

You’ll see steady turnover as people graduate, replaced by incoming freshmen. These tenants will never buy a home until after graduation, and if they have trouble paying the rent, getting a roommate is an acceptable solution. This makes the Montgomery Alabama real estate market perfect for those who want to invest in student housing since there are simply more universities in the area.

Montgomery Real Estate is Affordable

Montgomery real estate is cheap. The typical home value in the Montgomery area is $178,769 whereas, in the city, it is $129,700 (Zillow Home Value Index). ZHVI is a smoothed, seasonally adjusted measure of the typical home value and market changes across a given region and housing type. It reflects the typical value for homes in the 35th to 65th percentile range.

While that is far lower than the national average, it is considerably cheaper. That said, affordability should continue to be the driving force of both supply and demand in the area. First-time buyers and Millennials should find the Montgomery home market more enticing than most others. Hence, Montgomery real estate investing should experience a boost in activity as well.

A Large Rental Market for Multi-Family Housing

While the cost of living and housing are both relatively low in Montgomery, many residents can’t earn enough to afford to buy a home. This created a relatively strong market for multi-family housing. As of May 17, 2022, the average rent for a 1-bedroom apartment in Montgomery, AL is currently $675. This is a 12% decrease compared to the previous year.

• The average rent for a 2-bedroom apartment in Montgomery, AL is currently $900, a 16% increase compared to the previous year.
• The average rent for a 3-bedroom apartment in Montgomery, AL is currently $1,095, an 8% increase compared to the previous year.
• The average rent for a 4-bedroom apartment in Montgomery, AL is currently $1,395, a 16% increase compared to the previous year.

Montgomery Alabama real estate is more than apartments for locals and students. The 2017 Realtors Confidence Index Report described the outlook for single-family homes in Alabama as “very strong”. Buyer traffic for Alabama was seen as strong. For seller traffic, Alabama was rated in that report as having moderate seller conditions, but all of the surrounding states were projected to be “weak” in that category.

Suburbs with Potential

Prattville is located near Montgomery, Alabama. Capitol Hill Golf Course is located here; that’s the site of the Nationwide Tour. The town’s population has grown by half in the past ten years. This is an excellent place to consider buying a rental home whether you’re catering to snowbirds or people relocating to the area before finding a permanent residence. The typical home here is worth around $240K, a deal compared to other up-and-coming golf communities.

Suburbs around Montgomery offer safety, space, and more modern amenities. Small towns around the city provide wide open spaces and privacy. That’s why homes in Wetumpka have a median price of around $160,000 while rent for apartments there as of mid-2018 was $1200 per month, 20% more than the state average. This is where you can find luxury homes and apartments to buy as investment properties while still paying a fraction of the cost of one in a bigger market.

Tax Friendly State

Alabama has incredibly low taxes. The state and local tax burden typically rank among the top ten (best) in the U.S. The state and local taxes are one of the biggest deciding factors real estate investors need to consider. Alabama has some of the lowest property tax rates in the nation. The median property tax in Montgomery County, Alabama is $435 per year for a home worth the median value of $121,000. Montgomery County collects, on average, 0.36% of a property's assessed fair market value as property tax.

Montgomery County has one of the lowest median property tax rates in the country, with only two thousand five hundred thirty-eight of the 3143 counties collecting a lower property tax than Montgomery County. The average yearly property tax paid by Montgomery County residents amounts to about 0.74% of their yearly income. Montgomery County is ranked 2719th of the 3143 counties for property taxes as a percentage of median income.

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.

References

Market data and trends
https://www.zillow.com/montgomery-al/home-values/
https://acre.culverhouse.ua.edu/category/statewide/montgomery-area/
https://acre.culverhouse.ua.edu/research/residential-research/montgomery/
https://www.neighborhoodscout.com/al/montgomery/real-estate
https://www.realtor.com/realestateandhomes-search/Montgomery-County_AL/overview

Job Growth
https://www.bestplaces.net/economy/city/alabama/montgomery

Alabama taxes
https://taxfoundation.org/state/alabama/
http://www.tax-rates.org/alabama/montgomery_county_property_tax

Prattville data
https://www.nerdwallet.com/blog/mortgages/home-search/best-towns-alabama-young-families/

Montgomery growth
https://www.bestplaces.net/city/alabama/montgomery

Student housing market
http://www.nreionline.com/student-housing/buyers-return-student-housing-sector