Norada Real Estate Investments

  • Home
  • Markets
  • Properties
  • Notes
  • Membership
  • Podcast
  • Learn
  • About
  • Contact

Austin Real Estate Market: Prices | Trends | Forecasts 2022

May 18, 2022 by Marco Santarelli

Austin Housing Market

Austin's housing market is booming. The market reflects what is happening in other major cities across the country. While activity appears to have slowed slightly in recent months, Austin's residential real estate market remains extremely hot, with prices increasing significantly over the last year. Austin real estate remains a seller's market despite nationwide inflation and rising interest rates. The main reason is strong in-migration and a rapidly recovering local economy.

According to the Census Bureau’s 2021 population estimates, Austin's population is increasing by 146 people every day. This type of expansion places immediate and substantial demands on infrastructure, especially housing. The latest trends show that the Austin housing market continues its record-breaking pace as home prices set records across Austin-round rock MSA.

The data also show strong housing market growth in Bastrop and Caldwell Counties, indicating that people are looking farther out from the central city, which has implications not only for local housing markets in these areas but also for transit and transportation, as well as access to other amenities and services.

Despite a calming trend, the Austin housing market is still on track for a record-breaking year as per the latest market data released by the Austin Board of REALTORS®. While home sales in the Austin-Round Rock metro area fell 5 percent, the median sales price increased 22.6 percent year over year to $521,100., setting a new all-time record. A lack of supply is lagging strong demand, causing home prices to rise. While inventory remains low, we can attribute this to the Austin market's high demand and the churn of new homes listed and sold in three weeks (21 days) in the majority of cases.

Austin's housing market has been one of the strongest in the country over the past few months. Austin's rapidly expanding economic industry is driving more people into the city which is increasing the housing demand. A surge of people moving in from other parts of the country, combined with rapid population growth and low mortgage interest rates, has turned Austin and its surrounding area into a sellers' market.

When Zillow released its latest list of the top ten hottest housing markets in the United States, Austin was no longer ranked number one. Zillow previously ranked Austin as the hottest housing market but that ranking has slipped several spots for 2022. It ranks Austin at #10 now. According to Zillow's 2022 forecast, Tampa is the year's hottest housing market, with the city expected to top the list due to its relative affordability and high job growth.

As of March 2022, the typical home in the Austin-Round Rock metro area is worth $589,627 (ZHVI). This is a seasonally adjusted value that only includes homes in the middle price tier. Home values in Austin-Round Rock Metro have increased by a massive 42.7 percent in the last year, and they will continue to increase in double-digits over the next twelve months.

According to a new study, Austin homes are among the most overvalued in the United States. According to the study conducted by researchers from Florida Atlantic University and Florida International University, homebuyers in Austin are paying nearly 51% more than expected for houses. The only metro area where homebuyers pay a higher premium is Boise, Idaho, where homebuyers pay an astronomical 81 percent more.

The current trends indicate that a slowing growth rate in sales indicates market stabilization but the demand is still outpacing the supply in a market where housing prices have reached all-time highs. As a result, Austin home prices are skyrocketing, and buyers are bearing the brunt of the burden. Low inventory, high buyer demand, and rising prices will continue throughout the year, creating a competitive market. The median sales price is surging in double-digits and will continue to rise over the next twelve months.

Home construction is booming in the Austin area, but it's not fast enough to keep up with the region's brisk demand. Inventory is still extremely low and continues to fall. The months of supply are just 0.5 months, which means at the current pace of sales it would take only 2 weeks or less for the supply to dwindle to zero. In March, the active listings jumped 46.1% to 1,731 listings, causing housing inventory to increase by 0.2 months to 0.5 months of inventory.

Looking at this trend, the Austin area needs more housing supply at all price points to stabilize home price growth in 2022. Access to affordable homeownership has become a concern for many Austin residents due to continually growing home prices, but with dwindling inventory, lot and labor shortages, and rising building costs, getting more affordable homes on the market isn't easy.

Austin Housing Market Trends 2022

Austin Real Estate Market
Data by ABoR

Austin is the capital city of the U.S. state of Texas, as well as the seat and largest city of Travis County, with portions extending into Hays and Williamson counties. According to Realtor.com, in March 2022, the median listing home price in Travis County, TX was $590K, trending up 24.2% year-over-year. The median listing home price per square foot was $321.

  • There are 29 cities in Travis County.
  • Barton Creek has a median listing home price of $3M, making it the most expensive city.
  • Del Valle is the most affordable city, with a median listing home price of $369.9K.
  • The median listing home price in Austin, TX was $620,000, trending up 24% year-over-year.
  • Austin was a buyer's market in March 2022 as it had a total sales to total listings ratio below 0.12 tend, which tends to favor buyers.
  • In other words, the supply of homes was greater than the demand for homes.
  • The median listing home price per square foot was $348.
  • There are 83 neighborhoods in Austin.
  • Tarrytown has a median listing home price of $2.4M, making it the most expensive neighborhood.
  • West University is the most affordable neighborhood, with a median listing home price of $349K.

Austin's housing market was impacted by the pandemic which led to a decline in home sales due to critically low levels of housing inventory. As sellers backed out amid growing uncertainly and health crises, the Greater Austin area also felt the stark effects of this crisis. More buyers are moving to Austin’s suburbs to adapt to a new work-from-home culture. Companies like Google and Tesla are moving operations to Austin. The software giant Oracle has also relocated its headquarter here.

As more companies move here, that means more people looking for homes, and the city is also attractive to outside investors. With a steady influx of job creation in the pipeline, the housing market will continue to post strong numbers well into 2022. Big companies moving here will also play into what happens to the housing market. With an all-time high in corporate relocations, the housing demand is way up and the supply side cannot match up.

Below are the latest housing market trends for the Austin-Round Rock MSA released by the Austin Board of Realtors. The report compares key housing metrics from Mar 2022 with Mar 2021. Their data shows that the Austin-Round Rock MSA housing market experienced a decline in residential home sales, while a slight increase in housing inventory coincided with a new all-time record for the median sales price.

Despite rising home prices along with nationwide inflation and rising interest rates, REALTORS® are excited to assist its clients in navigating a busy and competitive market in 2022. They are still experiencing a very active housing market driven by true demand.

  • Home sales across the Austin-Round Rock MSA are down 5% year-over-year.
  • The median price is up 22% to $521,100.
  • Fewer sellers entered the market, so new listings were down 1% year-over-year.
  • Sales dollar volume increased by 10% to $2.13 Billion.
  • Pending sales dropped by 11%.
  • Active listings rose by 46% year-over-year.
  • Homes across the MSA spent an average of 21 days on the market, 6 days fewer than Mar 2021.
  • Months of supply is 0.5 months — a sign of a strong seller's real estate market.

Still, it is a good time for buyers and investors who want to invest in Austin especially with interest rates being as low as they are right now. Many of those fortunate enough to have kept their jobs are looking to take advantage of low mortgage rates by jumping into the market. The main concern is the critical lack of inventory which can make it increasingly difficult for buyers to find homes that suit their requirements.

It has dropped to 0.5 months as of March 2022 — meaning if no new listings were added in the area, the existing homes on the market would be sold in less than two weeks. Although most of the market is for resale homes the complicated new construction permitting process is one of the reasons for the city's low housing inventory. According to local builders, zoning regulations, permitting hurdles, and other issues limiting the supply of new construction affect their ability to build new houses. But it’s mostly a supply and demand imbalance leading to price increases.

Austin (City) Housing Market Trends

March 2022 (YTY CHG)

High demand drove the median home price up 22.4% year-over-year to $624,000—an all-time record.
Home sales decreased by 6.3% to 1,048 sales.
Sales dollar volume jumped 9.6% to $809,687,300.
During the same period, new listings decreased 7.5% to 1,316.
Active listings increased 20.3% to 533.
Pending sales decreased 18.7% to 1,128.
Monthly housing inventory increased by 0.1 months year over year to 0.5 months.

Travis County is the fifth-most populous county in Texas. Its county seat is Austin, the capital of Texas, and is part of the Austin–Round Rock Metropolitan Statistical Area. Property values are rising in Travis County, which can be beneficial if you are selling or planning to sell your house soon. The median price for residential homes increased 22.8% year over year to $600,500. Home sales decreased 7.1% to 1,615 sales, while sales dollar volume rose 4.3% to $1,215,615,940.

Travis County Housing Market Trends

March 2022 (YTY CHG)

Home sales decreased 7.1% to 1,615 sales.
Sales dollar volume increased 4.3% to $1,215,615,940.
The median price for residential homes climbed 22.8% to $600,500.
During the same period, new listings decreased by 4.5% while active listings increased by 32.1%.
Pending sales decreased 18.3% to 1,696 contracts.
Monthly housing inventory increased by 0.1 months year-over-year to 0.5 months.

Other County Reports From ABoR – March 2022

These trends have echoed in all the five counties of the Austin-Round Rock Metro. The price increase was accompanied by a drop in home sales except for one county.

Williamson County: Home sales decreased 3.0% to 1,115 sales in Williamson County. Sales dollar volume rose 18.8% year over year to $604,628,462. The median price increased 22.5% to $490,000 as new listings fell 0.8% to 1,344 listings. During the same period, active listings skyrocketed 66.5% to 428 listings while pending sales dropped 7.7% to 1,219 pending sales. Housing inventory rose by 0.2 months to 0.4 months of inventory.

Hays County: Home sales declined 2.6% to 409 sales, while sales dollar volume rose 21.4% to $234,574,514. The median price for homes jumped 27.6% to $440,000. During the same period, new listings decreased 10.2% to 482 listings, while active listings increased by 50.6% to 268 listings. Pending sales fell 6.0% to 452 pending sales as housing inventory rose by 0.3 months to 0.7 months of inventory.

Bastrop County: Home sales decreased 27.3% year over year to 120 sales, while sales dollar volume rose 9.1% to $56,760,430. The median price also increased 46.9% to $405,500 as new listings rose 48.5% to 196 listings. Active listings soared 109.8% to 128 listings and pending sales increased 13.2% to 154 pending sales. Housing inventory increased by 0.5 months to 1.0 months of inventory.

Caldwell County: Home sales increased 19.4% to 43 home sales, and sales dollar volume rose 38.7% to $16,766,237. The median home price rose 31.2% year over year to $329,000. At the same time, new listings rose by 150% to 80 listings as active listings also increased 21.4% to 34 listings. Pending sales rose 130.3% to 76 pending sales, and housing inventory increased by 0.1 months to 1.0 months of inventory.

Austin Real Estate Market Forecast 2022 – 2023

What are the Austin real estate market predictions for 2022 to 2023? Austin housing market is shaping up to continue the trend of the last few years as one of the hottest markets in the nation. Austin’s engine of job and population growth is not projected to slow down anytime soon—the biggest drivers of residential real estate demand. Its economy has diversified and strengthened over the past two decades.

All these factors indicate that this region has a higher probability of withstanding economic downturns due to the current pandemic. To determine the best local real-estate markets in the U.S., WalletHub compared 300 cities of varying sizes across 24 key indicators of housing-market attractiveness and economic strength. They looked at factors like median home-price appreciation to home sales turnover rate to job growth.

The city of Austin's real estate market came in at number 7 overall and 3rd among large cities. Boise was found to be the best market in the nation, followed by Seattle, Frisco, Nashville, and Gilbert in the top five. Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years.  The typical value of homes in Austin is $448,406. Since 2012, Austin's home values have appreciated by nearly 90%.

According to their report, the value of the Austin Metro housing market grew by $141 billion, or 126%, in the past decade. In 2010, the market was worth about $111 Billion. In 2019, Austin's total housing value grew $22 billion, or 9.5%, year-over-year. Home value growth in Austing has outpaced the national average since 2010.

NeighborhoodScout's data also shows that Austin real estate has appreciated 178.55% over the last ten years, which is an average annual home appreciation rate of 10.79%. This figure puts Austin in the top 10% nationally for real estate appreciation. During the latest twelve months, Austin's appreciation rate was 36.09%.

In the latest quarter, Austin's appreciation rate has been 12.45%, which annualizes to a rate of 59.92%. Looking at these statistics, it is a no-brainer that Austin home prices are going to rise in double-digits over the next twelve months. Clearly, for the long-term investment, you cannot underestimate Austin. Investing in a rental property for the long-term would build your equity and also generate cash flow through rental income. If you want to increase your cash flow in 2022 or 2023, you will find great deals in the Austin real estate market.

Here's Zillow’s housing market forecast for Austin, Travis County, and the Austin-Round Rock Metro. The Zillow Home Value Forecast (ZHVF) is the one-year forecast of the Zillow Home Values Index (ZHVI). ZHVF 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 Austin is no exception to that. According to their forecast, the supply and demand dynamics will likely push prices north again over the next 12 months. This confirms yet again that Austin is a hot seller's real estate market. There exists a limited supply of homes in Austin, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers.

  • Austin-Round Rock Metro's home values have gone up 42.7% over the past year and will continue to rise in double-digits over the next 12 months.
  • Austin (City) home values have gone up 38.6% over the past year and a similar or a little less rate of appreciation is expected over the next 12 months.
  • The typical home value of homes in Austin is $676,077.
  • This shows that prices are going to rise to the point where most people can’t afford them in this city.
  • Travis County home values have gone up 39.6% (current = $651,459) over the past year and will continue to rise over the next 12 months.
  • Williamson County home values have gone up 48.1% (current = $546,008) over the past year and will continue to rise over the next 12 months.
  • Hays County home values have gone up 47.1% (current = $487,688) over the past year and will continue to rise over the next 12 months.
  • Round Rock home values have gone up 48.4% (current = $548,738) over the past year and will continue to rise over the next 12 months.

The chart below, created by Zillow, shows the growth of median home values since 2012.

Austin Housing Market Forecast
Source: Zillow

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? The pandemic has not had much impact on home prices. Historically low-interest rates, tight inventory, and strong demand have favored sellers in the Austin housing market. 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, Austin 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. The inventory in Austin MSA has dropped to critically low levels (0.5 months) due to an extreme shortage of housing supply.

For sellers in the Austin housing market: It’s a good time to sell a home as homebuyers are still looking to buy homes, and fewer homes on the market mean stronger demand and increased visibility for your property. There are plenty of potential buyers amid record-low levels of inventory levels across the MSA. The one variable that will hold the market back is the lack of inventory.

For buyers in the Austin housing market: It is a great opportunity to scoop up their favorite deals due to low mortgage rates. If interest rates remain low, they are a driver in the market response. Low-interest rates are also making refinancing a house more appealing.

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 Austin 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.

Austin Real Estate Investment: Should You Invest in Austin?

Should you consider Austin real estate investment? Many real estate investors have asked themselves if buying an investment property in Austin is a good investment? You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2022. Let’s discuss a bit about the Austin metro area and then do a quick recap of how its housing market performed during the pandemic.

Austin is a minimally walkable city in Travis County with a population of approximately 790,195 people. It is the capital of Texas and it is growing at a fast clip. It is the fourth largest city in the state of Texas. The Austin real estate market isn’t the largest in the state of Texas, but there are several reasons to consider buying real estate in this city. The Austin housing market has gained a lot of steam, with home values almost doubling since 2010. It isn’t as big as Dallas, San Antonio, or Houston.

However, the Austin housing market is sizable – it is the eleventh largest city in the U.S. as of this writing, and it is the center of a large metro area. Austin has come up as another tech hub in the last 5 to 6 years. There are tons of high-paying tech jobs moved to Austin in the last couple of years. The Austin-Round Rock metro area is home to about two million people. Recently Austin was ranked eighth for the best real estate markets, topping all other big Texas cities.

As per Neigborhoodscout.com, a real estate data provider, one and two-bedroom single-family detached homes are the most common housing units in Austin. Other types of housing that are prevalent in Austin include duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 46% of Austin's housing units.

According to ABoR, Austin's competitive housing market is changing the landscape of traditional homeownership. More homebuyers purchase condos and townhomes to live closer to the urban core or stay within their budget. Austin has been one of the hottest real estate markets in the country for many years. It has a record of being one of the best long-term real estate investments in the U.S. over the past 10 years.

It is currently a hot seller’s real estate market – which means that the demand from buyers is exceeding the current supply of homes for sale. The pricing of homes is trending higher and is more attractive for sellers in the current phase. The shortage of supply and an increase in the demand for housing will push the prices higher in 2022 as well. Austin's immense population growth during the past decade has heavily impacted its real estate market. In the last twelve months, the median price for residential homes in Austin has increased by a whopping 14%, an all-time high.

Although this article alone is not a comprehensive source to make a final investment decision for Austin, we have collected ten evidence-based positive things for investors who are keen to buy an investment property in Austin. Texas is unique for having a biannual legislature. They don’t have the state legislature in town year-round. Instead, they are only in session for several months every two years.

This leads to an influx of legislators, reporters, and lobbyists every other year. This creates a unique but predictable boom and bust for the Austin housing market in the vicinity of the capitol building. Let’s look at the state of the Austin real estate market and the factors driving the market in the short and long term.

Is Austin Housing Market In A Bubble?

Austin is one of only eight U.S. metro areas to have fully recovered in the last 10 years to pre-recession values. Would Austin remain as one of the top real estate markets in the country or would the bubble burst? Well, Austin isn’t considered to be in a real estate bubble because the demand is consistently high and inventory is very tight. This is good news for investors because you can expect steady activity and the flow of people looking for housing.

In 2019, Austin continued to rank high on “Best of U.S.” lists. There was a record number of home sales in 2019. The December and Year-End 2019 Central Texas Housing Market Report reflects a record-breaking 33,084 home sales and $13B in sales volume. According to the Austin Board of REALTORS® (ABoR), between 2010 and 2019 home sales increased by 84%. The median home price in Austin has increased from $193,520 in 2010 to $318,000 in 2019, and the market did not show any signs of slowing down from 2020 to 2021.

The price of Austin properties declined following the 2007 peak while prices remained relatively flat following the 1995 and 2000 peaks. According to a report published on Williamskw.com, Austin will remain a seller's market in 2022 despite higher mortgage rates. The National Association of Realtors (NAR) suggests a “balanced” market is between 4-6 months of inventory. The entire Austin market is around 0.5 months. Austin inventory levels did increase in March 2022, yet not nearly enough for Austin to be a “buyers” market. That is not expected to change.

As Austin is a young city by many standards, Millennials will be the largest buying force in Austin in the upcoming years. This is going to be more attractive for the areas being close to neighborhood amenities and close by shopping & hang-out spots. Real estate industry experts think that there is no bubble. Austin's economy is strong and varied. Overall there is a huge scarcity of homes for sale in Austin. It just hasn't kept up with the pace of people moving here.

Austin's Affordable Real Estate & Certain Future Appreciation

Homes in Austin are 23% cheaper than the national average. It may be the second most expensive housing market in the state with a median home price of around $461,000, but it is still far cheaper than California or New York. Buy up condos or townhomes, and you’ll be able to see a sizable return on the investment.

An author in Forbes wrote in 2016 that Austin real estate is appreciating at one of the highest rates in the state because of NIMBY-ism, a reluctance to develop the riverfront or Texas hill country to build new homes. This has pushed development out along the highway and forced dense development in areas already zoned for housing.

This pushes up the price of existing homes, driving many in the Austin housing market to rent when they want to buy, while it guarantees capital gains for those who buy and hold property. Here are the ten neighborhoods in Austin having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

  1. East Cesar Chavez / Holly
  2. Central East Austin
  3. Holly West
  4. Chestnut
  5. Central East Austin South
  6. Rosewood
  7. Govalle
  8. Johnston Terrace
  9. Montopolis South
  10. East Riverside North

Cost of living In Austin

The Austin-Round Rock metro area is home to about two million people. The city is known as a haven for live music, free-thinking, and free spirits. It has a distinct culture and flavor compared to the rest of Texas, which is a mostly conservative and traditional state. According to WalletHub, among large U.S. cities, Austin ranked eighth, topping all other big Texas cities as well as San Jose, Atlanta, and Portland. Among all 300 cities, Austin still ranked a respectable No. 36 for best real estate markets.

One of the factors driving the Austin real estate market is the intangible but well-documented quality of life the city provides. In 2017, US News and World Report ranked the city first for quality of life. In 2016, Austin was ranked first on the Forbes list of Cities of the Future list. In 2017, that same magazine ranked the South River City neighborhood as one of the best for Millennials. WalletHub ranked the city sixth in their list of best places to live in 2017. In 2012, the FBI ranked Austin as one of the safest cities in the country.

Aside from high housing prices, the cost of living in Austin is relatively affordable. Overall, the cost of living for Austin is very reasonable. At three percent below the national average cost of living, moving to Austin may be an economical choice for you. One of the most interesting factors in the cost of living for Austin is that the cost of housing is 15 percent below the national average.

According to Sperling’s Best Places, grocery costs in Austin are slightly below the national average, with a rating of 89.1 against the U.S. average of 100, meaning it is about 11 percent lower than the national average on groceries.

The sales tax rate in Austin is 8.25 percent. There are no income taxes in Texas. Schools are largely funded through property taxes, which rise along with home prices. As home prices continue to skyrocket and people are increasingly forced to move to the distant suburbs to find affordable housing, a massive reworking of Austin’s building codes, known as CodeNext, promised to deliver some relief.

The median salary in Austin, TX is $51,596 and it is the 108th most expensive city in a database of 232 cities by NerdWallet.com. For a 2-bedroom apartment, the median rent per is $1,184. The median price for a 3/2 bedroom house is $276,634. Food and entertainment costs in Austin are reasonable. Redwood Austin is the area with the lowest cost of living.

Areas With The Lowest Cost of Living in Austin – (List by Niche.com & prices by Livability.com)

  1. Redwood, Texas – Located in Guadalupe County. The median income in Redwood, TX is $47,778 and the median home value is $54,700.
  2. Lockhart, Texas – Located in Caldwell County. The median income in Lockhart, TX is $48,884 and the median home value is $115,400.
  3. Martindale, Texas – Located in Caldwell County. The median income in Martindale, TX is $43,929 and the median home value is $151,200.
  4. Uhland, Texas – Located in Hays County. The median income in Uhland, TX is $40,662 and the median home value is $78,100.
  5. Taylor, Texas – Located in Williamson County. The median income in Taylor, TX is $42,793 and the median home value is $116,600.
  6. Lago Vista, Texas – Located in Travis County. The median income in Lago Vista, TX is $75,126 and the median home value is $189,400.
  7. Elgin, Texas – Located in Bastrop County. The median income in Elgin, TX is $50,369 and the median home value is $104,000.
  8. Hornsby Bend, Texas – Located in Travis County. The median income in Hornsby Bend, TX is $49,077 and the median home value is $123,000.
  9. Round Rock, Texas – Located in Williamson County. The median income in Round Rock, TX is $72,412 and the median home value is $179,900.
  10. Wimberley, Texas – Located in Hays County. The median income in Wimberley, TX is $59,167 and the median home value is $214,600.

Austin's Massive Student Population Propels The Rental Investment

Many people want to invest in the Austin real estate market because there is a massive student population that will rent properties for a premium if they’re within easy commuting distance of the University of Texas Austin campus. That school alone has more than 40,000 students. The Austin community college hosts about as many students as UT Austin. Huston Tillotson University, Saint Edward’s University, and National American University are also located in this city.

Positive Demographic Momentum of Austin: About half of Austin’s population is between 18 and 44, though that figure is skewed by the large student population. However, the reality is that many college graduates choose to stay here because of the abundant, well-paying jobs. After all, Austin has the highest per capita of high-paying jobs of any Texas city. This helps explain why the Austin housing market is growing at the fastest rate of any major city in Texas. Many of these young adults are starting their families here, creating certain future demand for housing in the Austin real estate market.

Rental Market Statistics: Before the pandemic, the average rent for an apartment in Austin was growing at 5% annually (Source: RENTCafe). 48% of the households in Austin are renter-occupied which is a significant population. More than 65% of the apartments can be rented for $1,500 or less. Around 20% of the rental apartments fall in the price range of $1,500 to $2,000 while only 10% of the apartments fall in the rent price range of $2,000 or more.

The average size for an Austin, TX apartment is 864 square feet with studio apartments being the most affordable. 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage.

As of May 09, 2022, the average rent for a 1-bedroom apartment in Austin, TX is currently $1,550. This is a 31% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Austin increased by 6% to $1,290. The average rent for a 1-bedroom apartment decreased by -1% to $1,550, and the average rent for a 2-bedroom apartment increased by 1% to $1,930.

The Zumper Austin Metro Area Report analyzed active  listings last month across 6 metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Texas one bedroom median rent was $1,099 last month. Austin was the most expensive city with one bedrooms priced at $1,570 whereas San Marcos ranked as the most affordable city with one bedrooms priced at $1,060.

The best place to buy rental property is about finding growing markets. Cities like Round Rock, Cedar Park, and Pflugerville 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 their own opportunities for investors.

Here are the best areas to invest in a rental property in the Austin Metro Area in 2022. Most of these places have the same things in common, including rising rents and increasing property values. The Most Affordable Neighborhoods in Austin are University Hills where the average rent can go for $795/month, Heritage Hills, where the average rent can go for $795/month, and Windsor Hills, where the average rent can go for $833/month.

Where are rents growing fastest in Austin Metro Area (Y/Y%)

  • Georgetown had the fastest growing rent, up 36.1% since this time last year.\
  • Round Rock was second with rent climbing 35.2%.
  • Cedar Park ranked third with rent increasing 33.9%.

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

  • Cedar Park had the largest monthly rental growth rate, up 2.7%.
  • Pflugerville rent increased 2.1%, ranking as second.
  • Round Rock was third with rent growing 1.4%.
Austin Rental Market Trends
Source: Zumper

Austin Is The Silicon Prairie

Austin Texas has been nicknamed Silicon Hills and Silicon Prairie because they’ve attracted so many high-tech employers. This has resulted in an active upscale Austin real estate market. Austin’s GDP, which grew 117% over the last 20 years, helped the real estate market recover from the recession.

The closest metro to see this type of growth was Silicon Valley, which grew its GDP by 99% during the same period. Major local employers in Austin include IBM, Amazon, Apple, Cisco Systems, and many semiconductor manufacturers. There are more than 3300 tech companies in the region and more than 100,000 tech workers all competing for homes in the Austin real estate market.

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.

Austin is a Relatively Friendly City for Landlords

Texas, in general, is very landlord-friendly, though cities can have their own, stricter ordinances. Texas doesn’t specifically let tenants withhold rent for failure to provide essential services. You can evict someone for nonpayment of rent after three days. Texas doesn’t set a limit on security deposits.

Texas doesn’t require a minimum time frame before you increase the rent. For major lease violations, you can terminate the lease then and there and give them three days to vacate. Knowing you won’t spend months trying to evict a non-paying tenant is a good reason to consider the Austin real estate market or another Texas housing market over more liberal cities.

The Excellent Tax Environment

Texas’ property taxes may be high, but this is offset by the lack of a state income tax. There is, overall, a low state and local tax burden for investors. That makes this a great place to buy a home and rent it out.

Texas Real Estate Investment Opportunities: Where To Invest?

With Austin becoming a more diverse city every year, there are plenty of opportunities to take advantage of – from buying new homes to different investment options in the Austin real estate market. Austin is a leader across the country with jobs and when you combine that with home prices not as drastically increasing, you'll get a real estate market that many others envy.

Good cash flow from Austin investment properties 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 Austin in a growing neighborhood would be key to your success.

As with any real estate purchase, act wisely. Evaluate the specifics of the Austin housing market at the time you intend to purchase. When looking for the best real estate investments in Austin, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing.

Some of the popular neighborhoods in and around Austin are Northwest Hills, Downtown Austin, West Lake Hills, Brushy Creek, Barton Creek, Spicewood Summit, Mueller, South Austin, Hyde Park, Windsor Park, Crestview, North Austin, Allandale, Shady Hollow, Rollingwood and Steiner Ranch.

There are around 75 neighborhoods in Austin. Tarrytown has a median listing price of $1.5M, making it the most expensive neighborhood. West University is the most affordable neighborhood, with a median listing price of $325K. (on Realtor.com).

Downtown is where the city's high-rise buildings are located, as well as being the center of government and business for the region. Downtown Austin is expanding and the residential options are increasing.

The cost of real estate might be the highest in Austin, but residents live within walking distance of everything they need. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

Apart from the Austin real estate market, you can also invest in the housing market of Houston, TX. If you are a home buyer or real estate investor, Houston has a track record of being one of the best long-term real estate investments in the nation through the last ten years.

The Houston Real Estate Market forecast is good, and current housing prices are relatively low, so if you want to get on board the Houston real estate investing then now would be a great time to do so.

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 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 next one is the San Antonio real estate market. The median home value in San Antonio is $184,322. San Antonio home values have gone up 4.8% over the past year and Zillow predicts they will rise 1.9% by Dec 2020. 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.

How can we not mention Dallas on this list? The Dallas housing market 2020 is shaping up to continue the trend of the last few years as one of the strongest markets in the United States. Despite some fluctuations in the market, demand and sales have continued to climb at a feverish pace for more than two years and show no signs of stopping.

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.

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’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. If you want to buy an investment property in Dallas, don’t wait around, go ahead and do it.

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 Austin.

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

Not just limited to Austin 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 Austin turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

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.

Let us know which real estate markets in the United States you consider best 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 Austin 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://www.abor.com/category/press/market-stats
https://www.zillow.com/austin-tx/home-values
https://www.realtor.com/realestateandhomes-search/Austin_TX/overview
http://austin.culturemap.com/news/real-estate/08-30-18-austin-home-foreclosures-rise-report

Foreclosures
https://www.realtytrac.com/statsandtrends/tx/travis-county/austin

Apartment Prices & Trends
https://www.rentcafe.com/average-rent-market-trends/us/tx/austin/
https://www.rentjungle.com/average-rent-in-austin-rent-trends/

Reasons to consider investing in Austin
https://www.austintexas.gov/invest-here
https://www.usnews.com/best-colleges/university-of-texas-3658
https://www.collegesimply.com/colleges/texas/austin/four-year-colleges/
http://capstonecapitalusa.com/the-most-friendly-8-landlord-states
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renter
http://austin.culturemap.com/news/real-estate/09-11-18-best-real-estate-markets-in-us-austin-wallethub

Is Austin In A Bubble
https://www.quora.com/Is-the-Austin-real-estate-market-a-bubble-If-so-when-will-it-burst
https://www.williamskw.com/blog/5-Predictions-for-the-Austin-Real-Estate-Market-in-2018/53486

Cost of Living
https://livability.com/tx
https://www.tripsavvy.com/austins-cost-of-living-255111
https://www.bestplaces.net/cost_of_living/city/texas/austin
https://www.nerdwallet.com/cost-of-living-calculator/city-life/austin
https://www.niche.com/places-to-live/search/suburbs-with-the-lowest-cost-of-living/m/austin-metro-area
https://www.forbes.com/sites/scottbeyer/2016/08/31/why-is-austins-housing-more-expensive-than-other-texas-cities/#10556d3d6121

Filed Under: Growth Markets, Housing Market, Real Estate Investing

Phoenix Real Estate Housing Market: Prices | Trends | Forecast 2022

May 15, 2022 by Marco Santarelli

Phoenix Housing Market

Phoenix has been one of the hottest real estate markets in the U.S. The Greater Phoenix housing market is extremely strong this year. It is a metropolitan area, centered in the city of Phoenix, which includes much of the central part of Arizona. The Phoenix real estate market has not only recovered after a slump due to COVID-19 but the demand has reached new heights. The Case-Shiller house price index, which measures repeat sales, was up 32.9% over the year in Phoenix in February, well above the national average increase of 19.8%.

The housing shortage is just dire in Phoenix Area. A healthy housing market, experts say, is one in which there are enough homes for sale that if no new ones came on the market, it would take four to six months for the supply to run out. Phoenix has had enough for less than one month. Last year, Phoenix led the way with a 32.5% year-over-year price increase, according to the S&P CoreLogic Case-Shiller Indices released on Feb. 22.

A similar trend continues in 2022. According to CoreLogic HPI, the large cities continued to experience price increases in March, with Phoenix leading the way at 30.4% year over year. Among large metro areas, three recorded monthly price gains of 20% or higher in March: Phoenix (30.4%), Las Vegas (27.4%), San Diego (25.8%), and Denver (21.9%).

According to Zillow's home value index, typical property values in Phoenix-Mesa-Scottsdale Metro grew by 30.9% from April 2021 to April 2022, compared to 21% from April 2020 to April 2021, and 8.48% from April 2019 to April 2020. Phoenix-area home prices are forecasted to continue to rise at a brisk pace over the next twelve months. The supply of active listings stands at an all-time low. It would take about a month for the current inventory of homes on the Phoenix housing market to sell given the current sales pace.

According to Zillow, among the nation’s largest markets, annual appreciation was the second-fastest in August 2021 in Phoenix (31.8%). Only Austin, Texas, with 44.8 percent, beats Phoenix. The annual rental growth in Phoenix was 24.8%. Year over year, the Greater Phoenix's for-sale inventory is down 12 percent, according to Zillow's statistics. More inventory is anticipated to become available in the coming months.

A panel of Zillow's economists and real estate experts expect that Phoenix will be among the nation's top 10 hottest markets in 2022, where home values are expected to appreciate at a faster rate than the rest of the nation. Phoenix ranks at #8 while Tampa ranks #1 on that list. Zillow economists anticipate that national home values will climb by 14.3 percent in 2022, slower than the record-breaking rate of 2021 but still a market where the number of buyers exceeds the number of homes for sale. Each of the top 10 hottest metros is predicted to exceed that growth.

According to the Arizona Regional Multiple Listing Service, Phoenix home prices continued to rise as a result of extremely low supply and above-average demand, with the median sales price up 28.0 percent year over year and the average sales price is up +21.2%. The median sales price in the Phoenix region was $460,000 in March 2022. The average sales price was $569,752. Looking ahead to April, the ARMLS Pending Price Index is projecting a median sales price of $469,500. If April’s median sales price projection is correct, we will see a year-over-year gain of 25.2%.

ARMLS projects the median sales price to rise to $469,500 for April 2022, and the average price is estimated to reach $598,400. Months supply of inventory for March was 0.89, down from last month when it was at 1.14 months. It refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Historically, six months of supply is associated with moderate price appreciation, and a lower level of months’ supply tends to push prices up more rapidly.

After more than 19 months of extreme seller market conditions, the Greater Phoenix area will remain the seller's market in 2022. In seller markets, prices do not decline, but listings may remain active for a few additional days before accepting a contract. A full-price offer may be sufficient to secure a home. Purchasers may feel less compelled to waive appraisal and repair costs.

According to Redfin, the Phoenix housing market is very competitive.

  • In April 2022, Phoenix home prices were up 27.7% compared to last year, selling for a median price of $461K.
  • On average, homes in Phoenix sell after 21 days on the market compared to 23 days last year.
  • There were 2,286 homes sold in April this year, down from 2,538 last year.
  • More than fifty percent (61.5%) of homes were sold above their original asking prices, which is 4.3% more than last year.
  • About 22.5% of the listed homes were sold with price drops.
  • The sale-to-list-price ratio was 102.6%.
  • The average homes sell for about 2% above the list price and go under contract in around 22 days.
  • Hot listings can sell for about 6% above the list price and go pending in around just 6 days.

Phoenix is the seat of Maricopa County and the largest city in the state. In April 2022, the median list price of homes in Maricopa County was $515K, trending up 25.6% year-over-year (source: Realtor.com). The median listing price per square foot was $285. The median sale price was $495,000. It is a seller's market with a Sale-to-List Price Ratio of 101.19%. There's more demand for homes than there is supply, and it's what we see in most housing markets today.

  • Paradise Valley has a median listing price of $4M, making it the most expensive city in Maricopa County.
  • Sun City is the most affordable city, with a median listing price of $325,000.
  • Phoenix city has a median listing price of $475K, trending up 26.7% year-over-year.
  • The median home sold price in Phoenix is $461,000.
  • Arcadia has a median listing price of $1.7M, making it the most expensive neighborhood in Phoenix.
  • Central City South is the most affordable neighborhood in Phoenix, with a median listing price of $324.5K.

The pandemic (in 2020) could only pause sales, which in turn created a huge pent-up demand. As we saw Arizona real estate market thriving & becoming sizzling hot in the past couple of years, even the rise in mortgage rates was believed not to affect it. Low-interest rates are helping boost but the inventory is sparse. High demand and low inventory have increased prices, which is a piece of good news if you plan on selling. As per the current trends, the Phoenix is all set to remain a seller's market in the next 12 months. The prediction is that the upward price trend will continue for the near and medium-term, making any price reductions in 2022 rather unlikely.

Arizona Housing Market Trends 2022

If you are considering moving to Arizona, Scottsdale, Phoenix, and Tucson are some of the top places to call home. According to Zillow Home Value Index (ZHVI), since the last decade (May 2012), Arizona housing prices have gone up nearly 203%. ZHVI is not the median price of homes that are sold in a month within a geographic region. It is calculated by taking all estimated home values for a given region and month (Also called Zestimates), taking a median of those values, and applying some adjustments to account for seasonality or errors in individual home estimates. It, therefore, represents the whole housing stock and not just the homes that list or sell in a given month.

By this calculation, the current typical home value of homes in Arizona is $436,441. It indicates that 50 percent of all housing stock in the area is worth more than $436,441 and 50 percent is worth less (adjusting for seasonal fluctuations and only includes the middle price tier of homes). In April 2021, the typical value of homes in Arizona was around $335,000.

Arizona home values have gone up 30% over the past year and most likely they will continue to rise at a similar rate (double-digit appreciation) over the next twelve months. This also raises a bit of a concern that in Arizona wages are not keeping up with the rising costs of housing. When prices go up, some buyers can no longer afford to buy and drop out. The faster that pricing goes up, the more buyers tend to drop out, at least in a healthy market.

Arizona Housing Market
Source: Zillow.com

Arizona's housing market has over 900,000 renter households, accounting for 36% of the total number of households. According to a report from the National Low Income Housing Coalition (NLIHC), the rental prices in Arizona have become out of reach for many residents. For too many low-income workers, wages have not kept pace with rising rents and home prices. Workers need to make $21.10 an hour to afford a 2-bedroom rental at a fair-market rate.

In Arizona, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,097. To afford this level of rent and utilities — without paying more than 30% of income on housing — a household must earn $3,658 monthly or $43,892 annually. Assuming a 40-hour workweek, 52 weeks per year, this level of income translates into an hourly Housing Wage of $21.10.

The minimum wage in Arizona is $12.00/hr and the Average Renter Wage is $17.46. Cost-burdened is defined as spending more than 30% of one’s monthly income on housing and utilities. Neighborhoods in west and South Phoenix are most cost-burdened. In some cases, more than 50% of households are paying 30% or more of their income on housing costs, while less than 29% of renting households are housing cost-burdened in the north.

Flagstaff MSA is the most expensive MSA where you need an hourly wage of $24.35 to afford a 2-bedroom rental. The second most expensive is MSA is Phoenix-Mesa-Scottsdale, where you need an hourly wage of $22.56 to afford a 2-bedroom rental.

Arizona Housing Affordability
Source: The National Low Income Housing Coalition

Between 2010 and 2018, the City of Phoenix’s median income increased by only 10%, while, median rent increased by over 28%, and the median home price increased by over 57% during this time. In 2018, half of Phoenix renters were considered housing-cost burdened, 25% of homeowners were housing-cost burdened and altogether 36% of the entire population is housing-cost burdened. According to a report by Phoenix.gov, 65 % of households that fall within or below the moderate-income range would require some amount of subsidy to achieve housing that is considered affordable at their income level.

Here's the average cost of a home in Arizona across all the counties (source: Realtor.com)

Arizona Counties Median Listing Price $/SqFt
Maricopa County
$515K
$285
Pima County
$369K
$215
Yavapai County
$575K
$308
Pinal County
$415K
$220
Mohave County
$385K
$231
Coconino County
$699K
$377
Navajo County
$425K
$265
Gila County
$455K
$293
Yuma County
$299K
$190
Cochise County
$266K
$158

Phoenix Housing Market Forecast 2022 – 2023

What could be the Phoenix real estate market predictions for 2022 to 2023? Phoenix is the 5th largest city in the country and continues to grow. New residents are drawn to Phoenix by its strong economy, relatively low cost of living, high quality of life, economic opportunity, and cultural attractions. Since 2000, Phoenix’s population has grown by 20% to include approximately 555,013 households and 1.6 million people.

It is the biggest city in Arizona and the state’s capital. It is a minimally walkable city in Maricopa County with a population of approximately 1,442,530 people. However, Phoenix itself is massive. It is the only state capital with more than a million people. It is the fifth-largest city in the country. The Phoenix housing market is much larger than Phoenix itself – it encompasses the entire Valley of the Sun, Phoenix’s sprawling suburbs that are home to another five million people. That makes the Phoenix metro area the twelfth largest in the country.

The favorable living conditions have, furthermore, comforted real estate investors and buyers to invest in Arizona real estate market. The Phoenix housing market was a headline in the news a decade ago when the housing crisis of 2007 and 2008 caused home values here to fall by as much as half. The slow recovery of the national housing market has taken a decade.

Since 2006, the population has grown faster than housing. This growth fueled by job growth has finally consumed the glut of re-sale housing created during the bubble years. Now the market is facing a shortage of homes for sale. Phoenix home prices were up by roughly 7% over the last twelve months. Despite the increase in property prices, the Phoenix real estate market remains much more affordable than other places.

Single-family homes continue to drive the Arizona real estate market. In 2019, single-family homes grew by roughly 4% as compared to 2018. Particularly, previously-owned single-family houses compromise the majority of residential sales in the Arizona real estate market- approximately 80% of all sales. Annually, the number of previously-owned single-family homes is three to four times greater than new single-family home sales.

The Phoenix real estate market is the top-performing, not only in the Arizona real estate market but nationwide as well. Phoenix has a mixture of owner-occupied and renter-occupied housing units for sale. According to Neigborhoodscout.com, a national real estate data provider, three and four-bedroom single-family detached are the most common housing units in Phoenix. Other types of housing that are prevalent in Phoenix include large apartment complexes, duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 60% of Phoenix's housing units.

Since the last 10 years (May 2012), housing prices in the Phoenix metro have appreciated by nearly 223.7% (ZILLOW HOME VALUE INDEX). Phoenix's housing market started so strong in 2021 that only something as drastic as the ongoing pandemic could have impeded the real estate sector. The year 2021 started with an extreme shortage of houses for sale, and an increasing number of sales over the asking price of property owners.

The current typical home value of homes in the Phoenix-Mesa-Scottsdale Metro is $466,170. It indicates that 50 percent of all housing stock in the area is worth more than $466,170 and 50 percent is worth less (adjusting for seasonal fluctuations and only includes the middle price tier of homes). In April 2021, the typical value of homes in Phoenix was around $356,000. Home values have gone up 30.9% over the past year alone. Phoenix is a sizzling hot seller’s real estate market and prices will continue to rise in the next twelve months.

Similar growth has been recorded by NeighborhoodScout.com as their data also shows that in the past ten years, Phoenix real estate appreciated by 273.66%. This amounts to an annual real estate appreciation of nearly 14.09%, which puts Phoenix in the top 10% nationally for real estate appreciation.

During the latest twelve months, Phoenix's appreciation rate has been 33.00%, which is higher than appreciation rates in 98.95% of the cities and towns in the nation. In the latest quarter, the appreciation rate has been 11.85%, which annualizes to a rate of 56.50%. This figure also corroborates Zillow's positive forecast of +20%. It tells us that home prices in this region are expected to continue their growth in 2022 in double-digits. First-time home buyers will remain a strong force while younger Gen-Z buyers are expected to play a growing role in this housing market.

Here is the latest housing forecast for Phoenix, Metro Phoneix, and Maricopa County. There's good profit potential for the period of one year if you are looking for homes for sale with good flipping profit. It can be a profitable property investment opportunity if you can find a good deal. A long-term investment in Phoenix real estate will yield even greater profits.

  • Phoenix-Mesa-Scottsdale Metro home values have gone up 30.9% over the past year and they will continue to rise at a similar pace in the next twelve months.
  • In the city of Phoenix, home values have gone up 29.6% (current value = $425,130) over the past year and will continue to rise in the next twelve months.
  • Maricopa County home values have gone up 30.4% (current value = $475,651) over the past year and will continue to rise in the next twelve months.
  • Mesa home values have gone up 28.4% (current value = $432,246) over the past year and will continue to rise in the next twelve months.
  • Scottsdale home values have gone up 31.2% (current value = $849,169) over the past year and will continue to rise in the next twelve months.
Phoenix Housing Market Forecast
Source: Zillow.com

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? It is quite evident that the ongoing pandemic has not had any major impact on Phoenix's housing market. However, it was quite expected that social distancing, higher unemployment, and lower overall economic activity would constrain real estate activity in the near term. And it did happen from May 2020 onwards. The shutdown resulted in 546,900 unemployment filings.

At the same time, the industry started adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges. COVID-19’s impact on the Phoenix housing market was not that extreme. The Metro Phoenix housing market is extremely strong and has been hitting several new records in the last few months.

What does it mean for homebuyers in Phoenix? The biggest mistake buyers make is sitting around waiting for sale prices to decline while their potential mortgage payment plummets. Mortgage rates have been on an upward journey in 2022. The average rate on a 30-year fixed-rate mortgage was 4.98% in April 2022, which is more than April 2021 (3.06%). This is the time for buyers to take advantage before they are increased again. Properties purchased today are expected to be strongly appreciated by more than 20% over the next 12 months.

We have already discussed above the latest housing market report for the Phoenix area. It shows no sign of cooling off in 2022. The entire Greater Phoenix area is breaking records over records in sales prices due to tight inventory and an increasing rate of price appreciation. It's still a seller's real estate market in Phoenix.

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, Phoenix 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. We can conclude that demand has not only recovered from the COVID-19 pandemic but has reached heights that make it very strong by any historical standard. Hence, Phoenix real estate market remains strong and skewed to sellers, due to a persistent imbalance in supply and demand.

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 Phoenix 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. 

Phoenix Real Estate Investment: Should You Invest in Phoenix?

Should you consider Phoenix real estate investment? Many real estate investors have asked themselves if buying a property in Phoenix is a good investment? You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2020. If you are looking to make a profit, you don’t want to buy the most expensive property on the Phoenix real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in Phoenix that you might move into or sell at retirement in the future. Either way, knowing your profit potential and purpose is the first thing to consider.

Top Reasons To Invest In The Phoenix Real Estate Market

  • There are several other reasons to consider investing in Phoenix real estate.
  • Phoenix's housing market has been one of the highest appreciating communities not only in Arizona but in the nation as well.
  • Its more reasonably priced housing, lower cost of living, available workforce, and stable climate forecast a growing economy and stronger housing growth.
  • Phoenix home prices are now only back to where they were at the top of the real estate bubble in 2006, 12 years ago.
  • If you take into account inflation, however, Phoenix home prices are still 20% below the inflation-adjusted peak in 2005.
  • Current trends fairly predict that the Phoenix home prices and real estate appreciation rates in 2022 are very likely to be the same as in the past year.
  • In the latest quarter, Phoenix's real estate appreciation rate was at 11.85%, which equates to an annual appreciation rate of 56.50%.
  • The national economy is super strong and the number of people moving into Phoenix is finally strong again after tanking during the Great Recession.
  • Job growth has been vigorous for the past few years while single-family building permit activity has been relatively modest.
  • Phoenix is becoming a top destination for people living in high-cost areas like Los Angeles & Seattle.
  • After 18 months of extreme seller market conditions, the Greater Phoenix area is expected to be a seller's market in 2022, but one with weaker demand.
  • In seller markets, prices do not decline, but listings may remain active for a few additional days before accepting a contract.
  • A full-price offer may be sufficient to secure a home.
  • Purchasers may feel less compelled to waive appraisal and repair costs.

    Let’s take a look at the number of positive things going on in the Phoenix real estate market which can help investors who are keen to buy an investment property in this city. We’ll address the biggest factor pulling people to the Phoenix housing market next.

    Relatively Affordable Real Estate Market

    While California and Florida are seen as hot real estate markets, one of the major attractions of the Phoenix real estate market is affordable real estate. During 2018 and 2019, Arizona was one of the top three states in the nation for population growth. Only Texas and Florida outpaced it, in terms of year-over-year growth. Population growth is particularly high within the Phoenix metro area. Homes in the Phoenix housing market are approaching the 2006 record. Home-price appreciation appears to be slowing a bit in the Phoenix area and most experts agree that prices will continue to climb for the foreseeable future.

    According to the U.S. Census Bureau data, the population of the city of Phoenix rose by nearly 15% from 2010 to 2019. That’s well above the nation’s growth rate for that same timeframe. Population growth increases the demand for housing on both the purchase and rental sides. With all other things being equal, steady population growth tends to put upward pressure on home prices. The median home’s value has crossed $300,000 but that’s still cheaper than a starter home in coastal California. Don’t forget that the large retiree market means there is strong demand for one and two-bedroom houses and condos here, and those units are a fraction of the cost of a three-bedroom home.

    High Rate of Appreciation Due To Short Supply

    Although Phoenix has experienced consistent population growth, the housing market has not grown at the same rate. An Up for Growth study found that between 2000 and 2015 Arizona underproduced 505,134 housing units. This underproduction has caused a housing shortage in Phoenix. For example, in the last 30 years Phoenix produced approximately 220,000 new housing units, however, the population has grown by 820,000 people. Phoenix’s housing production has not kept pace with population growth.

    This underproduction was magnified when construction virtually shut down during the recession of 2008. Since that time, construction has slowly increased but has not reached the level of production achieved before the recession. The current shortages of housing supply, relative to demand, are a primary reason housing costs are increasing. A significant increase in housing supply is necessary to keep pace with current and projected housing demand.

    Highest Appreciating Phoenix Neighborhoods Since 2000 (List by Neighborhoodscout)

    1. Central City North
    2. Garfield
    3. Kenwood / Whites
    4. Artisan Commons
    5. Dateland
    6. East Citrus Acres
    7. Woodshire / El Camello
    8. Valencia Acres / Pomelo Park
    9. Papago Peaks Village / Parkview Village Park
    10. Arcadia Corners / Tavan

    The Growing Phoenix Rental Market

    There is always going to be high tenant turnover in student housing markets. The presence of universities also influences local home prices and rents. The capital of any state will be home to its flagship university, and Phoenix is no exception. Phoenix is so large that it doesn’t just host the flagship Arizona State University campus in Tempe. There are secondary campuses in downtown Phoenix, northwest Phoenix, and neighboring Glendale. These schools alone have more than seventy thousand students. The Arizona Summit Law School, Grand Canyon University, and several others are located here. There are easily 100,000 college students renting in the Phoenix housing market. You could invest in large single-family homes or multi-unit buildings to rent to students at any of these campuses.

    Phoenix Rental Trends: 36% of the households in Phoenix are renter-occupied while 64% are owner-occupied. The rents are rising and it makes sense to keep your home and rent it out. In some neighborhoods, the average rental home may rent well over $2,500 a month.

    As of May 15, 2022, the average rent for a 1-bedroom apartment in Phoenix, AZ is currently $1,345. This is a 25% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Phoenix decreased by -1% to $1,130. The average rent for a 1-bedroom apartment increased by 3% to $1,345, and the average rent for a 2-bedroom apartment increased by 2% to $1,625.

    • Two-bedroom apartment rents average $1,625 (an 18% increase from last year).
    • Three-bedroom apartment rents average $2,195 (an 11% increase from last year).
    • Four-bedroom apartment rents average $2,428 (a 10% increase from last year).

    The “Zumper Phoenix Metro Area Report” analyzed active listings last month across 11 metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Arizona one bedroom median rent was $1,327 last month. Scottsdale was the most expensive city with one bedrooms priced at $1,900 whereas Lake Havasu City 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 Surprise and Glendale 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 Phoenix Metro Area (Y/Y%)

    • Surprise had the fastest growing rent, up 30.7% since this time last year.
    • Glendale saw rent climb 27.4%, making it second.
    • Chandler was third with rent jumping 25.8%.

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

    • Phoenix, Mesa & Prescott rents had the largest monthly growth rates, all up 4.9%.
    • Surprise was second with rent increasing 1.2%.
    • Glendale saw rent climb 0.8%, making it third.

    These are some of the most affordable neighborhoods where the rent prices are way below the average Phoenix rent.

    • Garfield, where the average rent goes for $665/month.
    • Papago Vista, where renters pay $690/mo on average.
    • La Mancha, where the average rent goes for $695/mo.
    Phoenix Rental Market Trends
    Source: Zumper

    Phoenix's Growing Short-Term Rentals

    There are more than 200 golf courses in Arizona, but most are located in and around the Valley of the Sun. There are several sports teams located in Phoenix and a wealth of tourist attractions. What makes Arizona unusual is the state’s open relationship with rental sites like Airbnb. A law that went into effect in 2016 made Arizona a leader in Airbnb rentals. The sites are required to collect taxes on the rentals, simplifying revenue collection for the state and the landlords. That probably explains why Airbnb guests grew by 150% in 2016 alone. The Airbnb market has exploded in Arizona during the past five years.

    In late 2014, Phoenix only had 687 properties for rent listed on Airbnb. By March of 2019, that number had grown to 4,224 listed properties. This makes Phoenix a great place to buy a single-family home or condo to rent out to tourists (as a short-term rental). However, there are some restrictions on short-term rentals. In May 2019, the state government passed a bill allowing for more regulations of short-term rental operators in the state of Arizona.

    In the bill, municipalities were allowed to restrict rentals to overnight stays and prohibit events that otherwise would require a permit, like weddings. Under the new law, owners of short-term rentals should have a sales tax license and they must list the sales tax license number on any advertisements (online/offline) for the property. Although, Phoenix’s short-term rental industry was hit hard by the COVID-19 pandemic the industry has shown resilience with relatively fair returns as owners implement safety measures to curb the spread of the virus and encourage guests to feel safe.

    Phoenix is Landlord Friendly

    If you want to invest in real estate, you typically want to do so in a market where you can quickly evict people who don’t pay their rent or damage property. You’ll be glad to know that the Phoenix real estate market is among these compared to surrounding states. Arizona, unlike California, allows landlords to serve an unconditional quit notice. If the tenant violates the rental agreement or doesn’t pay rent, they can be evicted quickly. Renter-friendly rules like requiring a landlord to return a rental deposit within two weeks are not a burden. Conversely, laws that say you can evict a tenant within ten days for lying on a rental application are a definite plus.

    The Massive Snowbird Market

    The snowbird movement is somewhat different than the conventional tourist market. Arizona has long attracted retirees who couldn’t afford Florida or wanted a cleaner, allergy-free air that never included storm clouds. Quartzite, Arizona in particular draws two million snowbirds and tourists. The city stands out for its sixty-plus RV parks. An estimated 300,000 people stay all winter before returning home. Some own second homes in Arizona communities restricted to active adults, while others stay in trailer parks. This creates an unusually diverse opportunity for those considering investing in the Phoenix real estate market.

    Growing Retiree Market

    The same things attract many people to Phoenix as snowbirds cause many to retire here permanently. This means that many snowbirds end up staying permanently in the Phoenix housing market. Sun City stands out as a mecca for seasonal and year-round retirees, but it is far from the only retirement community in the Phoenix real estate market. The aging of the U.S. population makes investing in communities catering to older adults an excellent idea. Suppose you buy a house to renovate and rent out. Phoenix deals with a large retiree population, both permanent and seasonal.

    To accommodate aging in place, they’ve loosened the rules on building “accessory dwelling units”, commonly known as mother-in-law suites. The city also recognizes the need for affordable housing, and they allow people to build and rent out ADUs as affordable housing, especially if the property is within walking distance of public transit. Buy a house, rehab it, and build a granny flat, and you have two rental properties for not much more than the price of one. And the city is almost certain to approve it because they want denser development.

    Low Taxes in Arizona

    Kiplinger listed Arizona as the 8th most tax-friendly state in the U.S. in 2018. The state income tax is 2.59% for low-income earners, 4.54% for wealthier families. The median home is worth around $177,000 and came with a property tax bill of around $1400, well below what you’d pay in Texas. Arizona has been lowering its capital gains tax rate, as well. The state has a relatively low transfer tax on deeds or land contracts, too.

    The Major Wave of Renovation in Downtown Phoenix

    The section of Phoenix wedged between Seventh Street and Seventh Avenue is undergoing a wave of commercial redevelopment, fueled by more than five billion dollars invested to date. High-rise developments and mixed-use projects have been built, and several more are underway. Public transit in this area is significantly improved. That is making this area and neighborhoods bordering it an excellent place to invest in the Phoenix housing market. Phoenix isn’t just redeveloping downtown to create a dense, walkable urban core. It is cultivating fifteen complete walkable communities across the metro area with strong public transit, denser housing, and locally provided services. This is a radical shift from the suburban sprawl the area has long been known for.

    Phoenix, Arizona Real Estate Investment Markets

    Investing in Phoenix's real estate can be a worthy investment due to a steady rate of appreciation. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. The Phoenix housing market is one of the hottest markets for 2020. Don’t let memories of the Great Recession bust that cut home values in the Phoenix housing market keep you away. There are plenty of reasons to invest in the Phoenix real estate market, only ten of which we’ve provided above. Have a look at the Phoenix real estate investment prospects we have provided from various real estate sources and make the best possible decision for yourself.

    Good cash flow from Phoenix investment properties means the investment is, needless to say, profitable. 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 Phoenix investment property and you should be able to get a good return on your investment over the long term. The neighborhoods in Phoenix 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 Phoenix 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. Some of the popular neighborhoods for buying a house or an investment property in Phoenix are Vistancia, Laveen, Deer Valley, South Mountain, Biltmore, DC Ranch, Arcadia, McDowell Mountain Ranch, Anthem, North Scottsdale, Cave Creek, Old Town, Litchfield Park, Trilogy at Vistancia and North Phoenix.

    Phoenix real estate prices are well above average cost compared to national prices. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplex and triplex in Class A neighborhoods. The inventory is low, but opportunities are there.

    Even as Phoenix home prices have reached new heights, the market remains attractive to residential real estate investors. As they continue to compete for potential investment properties at the lower end of the market, the challenges for first-time homebuyers will remain. The homebuyers won’t be able to outbid real estate investors and would end up renting. As with any real estate purchase, act wisely. Evaluate the specifics of the Phoenix housing market at the time you intend to purchase. These prices are from Realtor.com and can vary from time to time.

    The super-hot housing market in Arizona has many other places for real estate investment. The Tucson real estate market is good for investment. Tucson like Phoenix sees a massive influx of snowbirds, retirees who flock here during the winter. That creates a large, seasonal rental market. The need for many retirees to sell their second homes when they can no longer travel or live independently provides an opportunity to snap up properties at a bargain rate. Better yet, a large number of those properties don’t have a mortgage on them. Other snowbirds sell their condo and move into single-family homes when they decide to stay in Tucson year-round.

    Similarly, Scottsdale has a track record of being one of the best long-term real estate investments in the nation if you are an investor. The area contains a mix of families, young professionals, and retirees. There are several reasons to consider investing in Scottsdale real estate. You’ll see better than average returns on the average Scottsdale real estate investment property, and its value will be bolstered by a variety of factors. The Scottsdale housing market has a more diverse rental market than just catering to those who can’t afford to buy a single-family home. For example, the area is famous for its snowbirds, retirees who come for the winter before returning home. This makes Scottsdale a good place for real estate investing.

    Chandler is bordered by the cities Tempe, Mesa, and Phoenix. It is home to about a quarter-million people. There are not suburbs to Chandler, because it is a suburb of Phoenix surrounded by other cities of similar size. However, Chandler has several points in its favor that make it a better choice for real estate investors than surrounding cities. The Chandler area offers strong market fundamentals in addition to a favorable tax and regulatory climate. This is in addition to a plethora of high-paying jobs that attract new residents and niche markets that are willing to pay higher rents in exchange for convenience and proximity to amenities.

    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 Phoenix.

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

    Not just limited to Phoenix or Arizona 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 Phoenix turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

    Let us know which real estate 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

    • https://armls.com/
    • https://www.zillow.com/Phoenix-az/home-values
    • https://www.redfin.com/city/14240/AZ/Phoenix/housing-market
    • https://www.realtor.com/realestateandhomes-search/Phoenix_AZ/overview
    • https://www.zillow.com/research/zillow-hottest-markets-2021-28667/
    • https://www.neighborhoodscout.com/az/phoenix/real-estate#description
    • https://www.phoenixnewtimes.com/news/phoenix-real-estate-cash-sale-prices-housing-market-rise-11634249
    • https://www.littlebighomes.com/real-estate-phoenix.html
    • https://www.zumper.com/rent-research/phoenix-az
    • https://www.phoenix.gov/housingsite/Documents/Final_Housing_Phx_Plan.pdf
    • https://www.abc15.com/news/state/as-arizona-housing-prices-rise-wages-are-not-keeping-up
    • https://metrorealtyphx.com/phoenix-real-estate-market-report-this-month
    • https://arizonarealestatenotebook.com/phoenix-housing-market-predictions-2019
    • https://www.mashvisor.com/blog/arizona-real-estate-market-2018-the-place-to-invest-this-year
    • https://www.realtytrac.com/statsandtrends/az/maricopa-county/phoenix
    • https://azbigmedia.com/7-projects-between-the-7s-in-downtown-phoenix/
    • https://azbigmedia.com/downtown-phoenix-development-makes-it-harder-to-find-a-place-to-live/
    • http://www.friends.org/latest/accessory-dwelling-units-are-cities-and-counties-doing-enough
    • https://www.phoenix.gov/sustainability/transportation
    • https://www.phoenix.gov/sustainability/transportation
    • https://www.curbed.com/2016/11/4/13518302/downtown-phoenix-real-estate-urban-planning-devleopment
    • http://capstonecapitalusa.com/the-most-friendly-8-landlord-states
    • https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
    • https://universe.byu.edu/2017/02/22/this-tiny-arizona-desert-town-is-a-retirement-mecca-for-2-million-human-snowbirds/
    • https://www.tripsavvy.com/what-is-a-snowbird-2683049
    • https://www.azcentral.com/story/news/politics/legislature/2016/07/27/airbnb-arizona-benefits/86314492/
    • https://www.bizjournals.com/phoenix/news/2017/02/15/exclusive-airbnb-hosts-in-arizona-earned-51m-in.html
    • https://www.kiplinger.com/slideshow/taxes/T006-S001-10-tax-friendly-states/index.html
    • https://yourbusiness.azcentral.com/percent-taxes-pay-selling-real-estate-17380.html
    • https://news.azpm.org/p/news-articles/2017/6/8/111864-arizona-housing-back-on-pace-after-housing-meltdown
    • https://www.azcentral.com/story/money/real-estate/catherine-reagor/2020/05/28/coronavirus-arizona-phoenix-housing-market-success-2020-pandemic-impact/5223134002/

    Filed Under: Growth Markets, Housing Market, Real Estate Investing

    Las Vegas Housing Market: Prices | Trends | Forecasts 2022

    May 14, 2022 by Marco Santarelli

    Las Vegas Housing Market

    The Las Vegas housing market is on fire in 2022. Sales of single-family homes are up from last year, and prices are reaching new highs. Month after month, inventory is depleting and cannot keep up with demand. People continue to flock to Las Vegas from more expensive areas, particularly Southern California, putting more pressure on housing demand. This trend has accelerated during the pandemic, according to industry experts, with home sales in the area reaching their highest level in 14 years.

    In Southern Nevada, homes are being sold at a quick pace, and prices are reaching new highs almost every single month. Buyers have flooded properties with offers, inventory is limited, and builders have raised prices and put buyers on waiting lists regularly. According to the latest data, Southern Nevada's rapidly growing housing prices reached another all-time high in April 2022, as the previous year's hot streak continued. The report from the Las Vegas Realtors shows that housing prices in the valley continue to rise, setting a new all-time high.

    The median sales price of previously owned single-family homes increased to $475,000 last month, which is up 3.3% from March and up 26.7% from the prior year. Furthermore, 87.2 percent of homes sold last month had been on the market for 30 days or less, compared to roughly 81.5 percent of homes in April of last year.

    There were 197 houses sold for $1 million or more in the Luxury Market last month, up from 173 homes sold in March. February's median sales price in the Luxury Market increased to $1,400,000 and in March that number was $1,360,000. It was an increase of $40,000 in the median sales price.

    Investors believe that Southern Nevada's housing prices are real and that the market is nearing a tipping point. The current price surge cannot be sustained. Las Vegas now ranks among the 10 most overvalued of the nation’s largest housing markets, with homes selling for 41.88 percent above their long-term pricing trend, according to a new analysis by professors at Florida Atlantic University and Florida International University.

    The only disadvantage is that buyers and investors buying now in the most overpriced markets are paying near-peak prices and risk being stuck for an extended period of time before realizing solid returns on their real estate investments. While first-time buyers face difficulties entering the market, seasoned owners are snapping up second homes.

    As housing prices rise in double-digits, many homeowners are developing a fear of missing out, believing that there will never be a better time to sell. Due to a lack of existing homes, the Las Vegas housing market is expected to remain hot until the end of the year, based on these trends.

    According to Nevada Census data, there will be a 1.51% increase in population between 2020 and 2025, as well as a 1.46 percent increase in median income during the same period. Even though builders are bringing more homes to market, demand continues to outnumber supply. Builders are still not building at a rate that meets the needs of homebuyers. All these factors will lead to less supply and will help keep the single-family price levels strong.

    The housing supply in Southern Nevada is now at 0.8 months, well below what is considered necessary for a balanced real estate market. Months of supply is a good indicator of whether a particular real estate market is favoring buyers or sellers. Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers. 

    The rental prices in Las Vegas are also increasing. Despite the high unemployment rate, rental vacancies have been trending downward to record-low rates. This shows a growing demand for rentals in the area and is a positive sign for real estate investors in the area. Las Vegas was among the fastest-growing metro area in December (ranked #4), with the median rent increasing 29.8% year-over-year to 1,631, according to Realtor.com. The annual growth in the median rent price in 2021 was 18.9% for Las Vegas (ranking at #6).

    The average rent for a 1-bedroom apartment in Las Vegas, NV is currently $1,306, according to Zumper. This is a 27% increase compared to the previous year. The average rent for a studio apartment in Las Vegas declines by 12% in the last month to $970. The average rent for a 1-bedroom apartment increased by 4% to $1,306, and the average rent for a 2-bedroom apartment increased by 3% to $1,600.

    Although the pandemic is still causing disruptions for businesses (casinos, hotels, restaurants, etc), there is no downturn happening in the Southern Nevada resale housing market. The market has recovered and reached new heights this year. The Las Vegas housing market is among those cities that are showing the most signs of a positive recovery from the pandemic. Nevada's unemployment rate was at its peak in April of last year (30.0%).

    According to the Department of Employment, Training and Rehabilitation’s (DETR) March 2022 economic report, Nevada’s seasonally adjusted unemployment rate was 5 percent which decreased by 0.1 percent from February 2022. All geographical areas in Nevada saw their unemployment rates decrease during the month of March.

    All three Metropolitan Statistical Areas (MSAs) saw decreases in their unemployment rates with Las Vegas-Paradise MSA experiencing the largest decline (-0.3 percent), and Carson City and Reno-Sparks MSAs both dropping by 0.2 percent (down to 3.0 percent and 2.6 percent, respectively). Low unemployment leads to higher future income which in turn leads to a higher demand for housing. Hence, as businesses in Las Vegas open to their full capacity, its housing market will continue to boom with the increasing demand.

    The rollout of the coronavirus vaccination program is the beginning of the end of the pandemic that has caused a lot of health and economic disruptions. The Las Vegas metro area home values are predicted to rise by 10-15% in the next twelve months (check the forecast below). It has already heated up with strong demand and a shrinking supply driving home price peaks. The houses are selling quicker than they were last year at this time despite the coronavirus pandemic's devastating effect on the economy.

    The national housing market has already bounced back faster than anticipated from the damage caused by the COVID-19 pandemic.  One sector of the Las Vegas housing market that has been doing particularly well is the luxury home market. The housing market in the area continues to rise as new residents arrive daily and bring millions of dollars in equity from the sale of their homes in more expensive housing markets. Las Vegas luxury homes are setting some records for the values of properties sold. As demand for housing in the city climbs and available inventory becomes a premium, home values surge and will continue to do so in 2022.

    Southern Nevada Housing Market Trends 2022

    Realtor.com's data shows that the median list price of homes in Las Vegas, NV is $430,000, trending up 26.5% year-over-year. The median listing price per square foot is $252. The Paseos has a median listing price of $950,000, making it the most expensive neighborhood. East Las Vegas is the most affordable neighborhood, with a median listing price of $285,000.

    The West Las Vegas housing market is VERY HOT. It ranks in the top 1% of neighborhoods in the area and the top 27% in the U.S, according to Realtor.com Market Hotness Index. Homes in East Las Vegas sell 6 days faster and are 91% less popular than homes in the surrounding area.

    • The median list price of homes in West Las Vegas, NV is $309.9K, trending up 29.2% year-over-year. The median listing price per square foot is $230.
    • The median list price of homes in East Las Vegas, NV is $285K, trending up 28.4% year-over-year and the median listing price per square foot is $232.
    • The median list price of homes in North Las Vegas, NV is $415K, trending up 29.7% year-over-year. The median listing price per square foot is $225.

    Las Vegas Real Estate Market

    • A full summary report published by Summerlincommunities.com (Data by LVR) on Las Vegas Real Estate Market Update shows that 3,001 single-family houses were sold in April, down 8.3% from March and down 14.9% from April 2021.
    • The median sales price of previously owned single-family homes went from $460,000 in March to $475,000 in April.
    • The price is up 3.3% from March and up 26.7% from the prior year.
    • The median price is at a $100,000 increase from April 2021.
    • In April, there were a total of 3,667 new listings, which was up 4% from March, but down .9% from the prior year.
    • There were also a total number of 2,441 single-family houses listed without offers at the end of April.
    • The number of single-family listings is up 21.7% from March and up 33.6% from the prior year.
    • The housing supply in Southern Nevada increased to .8 months of inventory, which is up 32.7% from March and up 57.1% from the prior year.
    • Months' supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.
    • 87.2% of the closings for the month of April were on the market for 30 days or less.
    • In March this number was at 82.8% and in April 2021, 81.5% of the homes were on the market for 30 days or less.
    Las Vegas Housing Prices
    Source: Las Vegas REALTORS®

    On a monthly basis, here's how the Las Vegas housing market ended

    Las Vegas Housing Market Trends
    Source: Las Vegas REALTORS®

    Las Vegas Real Estate Market Forecast 2022 – 2023

    What are the Las Vegas real estate market predictions for 2022 to 2023? From 2017 to 2018, the home values in Las Vegas appreciated by nearly 30.4%. In two years, Las Vegas home values rose significantly due to the low availability of homes and very high demand. It was named as the number one real estate market in the USA for 2018 by Realtor.com based on the price and amount of existing homes, new home construction, and local and economic trends.

    Las Vegas home values reported the highest year-over-year gains in home values, totaling a 13 percent increase, according to the S&P's Corelogic Case-Shiller Index in 2018 (the leading measure of U.S. home prices). However, in 2019, Southern Nevada’s housing market overall cooled off with slower price growth and slumping sales. It looks almost flat throughout the year in the graph given below. Although overall price appreciation rates were slower in 2019 than in 2018 they greatly varied across different zip codes.

    Southern Nevada prices were up 2.6 percent year-over-year in December 2020, compared with 3.8 percent nationwide, according to the S&P CoreLogic Case-Shiller index. The median prices for new homes increased by just 1 percent. Appreciation has been steady and strong in 2021, the Las Vegas metro home values have gone up nearly 33.3% over the last twelve months (Zillow Home Value Index). ZHVI is not the median price of homes that are sold in a month within a geographic region.

    It is calculated by taking all estimated home values for a given region and month (Also called Zestimates), taking a median of those values, and applying some adjustments to account for seasonality or errors in individual home estimates. It, therefore, represents the whole housing stock and not just the homes that list or sell in a given month. By this calculation, the current typical home value of homes in Las Vegas-Henderson-Paradise Metro is $437,478.

    It indicates that 50 percent of all housing stock in the area is worth more than $437,478 and 50 percent is worth less (adjusting for seasonal fluctuations and only includes the middle price tier of homes). NeighborhoodScout.com's data also shows that Las Vegas real estate appreciated by about 235.99% over the last ten years. Its annual appreciation rate has been averaging at 12.88%. This figure puts it in the top 10% nationally for real estate appreciation.

    • During the latest twelve months, the Las Vegas appreciation rate was about 25.61%,
    • In the latest quarter, the appreciation rate was 11.48%,
    • The quarterly rate equates to an annual appreciation rate of 54.45%.
    • This figure corroborates Zillow's positive forecast, which also predicts that home prices in this Las Vegas area will increase in the next twelve months.

    Short-term real estate investors can make a good fortune if they buy now. The market is riding a hot streak of record prices and rising sales despite the bleak economy. Housing prices have record levels last year despite the pandemic's devastating effect on the economy and this trend will follow in 2022.

    Here is the home price forecast for Nevada, Clark County, Las Vegas, Henderson, and Las Vegas Metropolitan Area. 

    • Las Vegas-Henderson-Paradise Metro home values have gone up 33.3% over the past year and the latest forecast is that they will continue to rise by more than 20% in the next twelve months.
    • Las Vegas City home values have gone up 33.6% over the past year (current value = $431,289) and will continue to rise, albeit at a slower rate.
    • Henderson home values have gone up 32.1% (current value = $504,412) over the past year and will continue to rise, albeit at a slower rate.
    • Clark County home values have gone up 33.3% (current value = $437,478) over the past year. It is expected to continue to rise, although more slowly than before. 
    • Winnemucca Metro (Paradise Valley) home values have gone up 16.7% (current value = $307,553) over the past year and will continue to rise, albeit at a slower rate.
    • The typical value of homes in Nevada (statewide) is $454,967, up 31.5% over the past year.
    Las Vegas Real Estate Market Forecast
    Courtesy of Zillow.com

    All these trends and predictions can be positive or negative depending on which side of the fence you are – Buyer or Seller? It is quite evident that the ongoing pandemic has had a great impact on home sales in the Las Vegas real estate market. Las Vegas' unemployment rate in April 2020 was a whopping 33.5 percent, the highest among major American cities.

    To quantify the unemployment numbers, the Las Vegas area lost more than 200,000 jobs from March to April. Home sales dropped sharply both in April & May from both the previous month and year as the housing market began to feel the full impact of the coronavirus outbreak and the state's stay-at-home order.

    At the same time, home prices remained unaffected and continued an upward trend. The report shows it is still a strong seller's real estate market with low and continuously declining inventory. As we move forward the real estate industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges. Real estate is also deemed an essential business.

    In July 2020, there was a surge in sales because of historically low-interest rates coupled with the efforts by the government to keep money flowing in the economy. The unemployment rate was down to 12% in Nevada and an estimated 14.8% of the Las Vegas Valley workforce was unemployed in September, the highest in the nation among large metro areas. Las Vegas has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in single-family rental properties.

    This area is skewed to sellers due to a very low level of inventory that can't meet the demand of the rising population. 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, it can become a buyer's real estate market if the supply increases to more than five months of inventory. And that's probably not going to happen anytime soon.

    Currently, the housing supply in Southern Nevada is at 0.8 months. Therefore, given how hot the local economy was before the pandemic, the Las Vegas real estate market remains strong and skewed to sellers due to a growing population and booming economy – which leads to a persistent imbalance in supply and demand.

    For sellers, 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. As more and more buyers enter the market the prices are going to increase due to tight supply. 

    For buyers, the mortgage rates are higher than last year. Rising interest rates increase the price of properties, limiting the demand for home purchases. Reduced demand also harms sellers, who must lower the value of their property to attract purchasers.

    Las Vegas' unemployment rate, just 3.9% in February 2020, shot up to 34% in April 2020. By June 2020 it had tumbled to 18% after casinos and other businesses were allowed to reopen, state officials reported. Even though these effects on the Las Vegas housing market are deemed short-term, it is yet to be predicted what the potential long-term impact could be.

    According to the Bureau of Labor Statistics, Nevada had the highest unemployment rate in July at 7.7 percent, followed by New York, New Mexico, and California at 7.6 percent each. Nebraska had the lowest rate at 2.3 percent. As of March 2022, Nevada’s seasonally adjusted unemployment rate was 5 percent which decreased by 0.1 percent from February 2022. All geographical areas in Nevada saw their unemployment rates decrease during the month of March.

    The number of unemployed individuals decreased by 603 since February 2022 to a current level of 75,555 people, which is 64,565 fewer unemployed people than in March 2021. The labor force in Nevada is currently 1,503,263 people, which is 4,960 more people than in February 2022 and is down 17,505 people since March 2021. 

    All three Metropolitan Statistical Areas (MSAs) saw decreases in their unemployment rates with Las Vegas-Paradise MSA experiencing the largest decline (-0.3 percent), and Carson City and Reno-Sparks MSAs both dropping by 0.2 percent (down to 3.0 percent and 2.6 percent, respectively).

    In the three Metropolitan Statistical Areas (MSA):

    • The unemployment rate was 5 percent in the Las Vegas area.
    • 2.6 percent in Reno.
    • 3.0 percent in the Carson area.
    • In Nevada’s counties, the lowest unemployment rate was in Eureka County at 1.4 percent.
    • Clark County had the highest rate at 5 percent.
    Nevada Unemployment Rate
    Courtesy of Nevadaworkforce.com

    Las Vegas Real Estate Market: Is It A Good Place For Investment?

    Now that you know where Las Vegas is, you probably want to know why we're recommending it to real estate investors. Is Las Vegas a Good Place Real Estate Investment? Many real estate investors have asked themselves if buying rental property in Las Vegas is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Las Vegas housing market's historical and current trends for answers on why to put resources into this market.

    Las Vegas is a minimally walkable city in Nevada. It is the 32nd most walkable large city in the US with 583,756 residents. Las Vegas has some public transportation and does not have many bike lanes. Downtown Las Vegas, home to the casinos and hotels, is the city's most accessible neighborhood, but housing is sparse there. In 2018, the Las Vegas housing market was so hot that it outperformed the best U.S. housing markets like Seattle. 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 market trends. The new businesses are propping up at a much faster rate than the national average.

    Las Vegas has a mixture of owner-occupied and renter-occupied housing units. It is a big rental property market. According to Neighborhoodscout.com, a real estate data provider, three and four-bedroom single-family detached homes are the most common housing units in Las Vegas.  Other types of housing that are prevalent in Las Vegas include large apartment complexes, duplexes, rowhouses, and homes converted to apartments.

    Las Vegas is the destination point of millions of visitors, the town is famous for its vibrant nightlife, exciting gaming action, and the natural allure of the beautiful desert that surrounds the greater metropolitan area. Tourists pour billions of dollars in Southern Nevada through which thousands of tourism jobs are supported.

    Let's learn more about Las Vegas and find out why one should invest in this sturdy real estate market. These things make the Las Vegas real estate market stand out when it comes to choosing a place to invest in 2020 and beyond. Keeping aside the short-term impact of the ongoing pandemic, let's take a look at the number of positive things going on in the Las Vegas real estate market which can help investors who are keen to buy an investment property in this city.

    Why Is Las Vegas A Good Place For Real Estate Investment?

    THE CITY & ITS DEMOGRAPHICS

    • Las Vegas is a beautiful city of million-lightbulb signs and fantastic architecture.
    • It is an internationally renowned major resort city.
    • It is known primarily for its gambling, shopping, fine dining, entertainment, and nightlife.
    • It is often known as “The Entertainment Capital of the World” – because of its “broad scope of entertainment options including nightlife, shows, exhibits, museums, theme parks, pool parties, and so on.
    • Las Vegas has 68 beautiful parks.
    • It is one of the country's leading vacation destinations, drawing far more tourists than the Grand Canyon or Yellowstone National Park.
    • More than 41 million people visit Las Vegas each year.
    • Over 22,000 conventions are held in Las Vegas every year.
    • It has been one of the fastest-growing major cities in the United States.
    • It is the most populated city in the state of Nevada and the 28th-most populated city in the United States.
    • The current metro area population of Las Vegas in 2020 is 2,699,000, a 2.98% increase from 2019 – Macrotrends.net.

    THE HOUSING MARKET & PRICES

    • The most prevalent building type in Las Vegas is single-family detached homes.
    • The city has a mixture of owners and renters, with 51.07% owning and 48.93% renting – “Neighborhoodscout.”
    • Las Vegas is in the top 10% nationally for real estate appreciation.
    • Las Vegas real estate has appreciated by 235.99% over the last decade.
    • It amounts to an average annual home appreciation rate of 12.88%.
    • Home values have gone up 33.3% over the past year.
    • The median sold price of homes in Southern Nevada has reached an all-time high of $475,000, up 26.7% YoY.
    • 1-yr forecast – 22-28%.
    • Las Vegas rental real estate market remains healthy and affordable for most renters.
    • There's also no slowdown on the horizon for the number of people moving to Las Vegas.

    THE ECONOMY

    • The Las Vegas Valley as a whole serves as the leading financial, commercial, and cultural center for Nevada.
    • Las Vegas is home to more than half of the 20 largest hotels in the world.
    • There are more than 150 casinos and roughly 150,000 hotel rooms in the Las Vegas valley area.
    • Las Vegas annually ranks as one of the world's most visited tourist destinations – famous for its mega casino-hotels and associated activities.
    • A diversified economy is driven by health-related, high-tech, and other commercial interests.
    • The primary drivers of the Las Vegas economy are tourism, gaming, and conventions, which in turn feed the retail and restaurant industries.
    • Mining constitutes the mainstay of the region's industrial sector.
    • Most of the manufacturing plants are concentrated in the communities of Henderson and North Las Vegas.
    • No state tax for individuals or corporations, as well as a lack of other forms of business-related taxes, have aided economic growth.
    • Construction is also a significant component of the economy.
    • The government is the metropolitan area's single largest employer.

    These are just some of the highlights that make Las Vegas a great place to live and invest in real estate. The list can go on and on. Before the coronavirus pandemic hit the state, the Las Vegas real estate market forecast was as hot as the desert heat in Nevada. Keeping aside this crisis for a moment, the housing market in this region provides an excellent opportunity for investors. They are expressing confidence in the stable housing prices and the number of available housing units on the market.

    New businesses are being created at a much faster rate than the national average. Las Vegas is also a strong rental market. Nearly 40% of the population rents in Las Vegas. Rental properties near these new businesses will benefit greatly due to the increasing tenant pool and the general improvement in economic activity that they bring. The first half of the previous year saw a huge increase in the demand for housing in Las Vegas, Nevada.

    The inventory of homes has further decreased from last year. The current local housing inventory in Las Vegas is just over a two-month supply of homes available for sale. The high demand is followed by an increase in population, as well as an overall improvement of the economy in the area. All these factors have had a huge impact on the Las Vegas housing market, which is considered one of the hottest markets in the nation. Las Vegas has experienced several booms in its history, and it saw an incredible real estate bust during the Great Recession.

    Las Vegas' recovery hasn't made the same headlines as the 50% or greater declines in home values did a decade ago. Yet its recovery shouldn't keep investors away. For savvy investors, the Las Vegas real estate market is both stable and predictable. Let's find out the latest trends and forecasts.

    Las Vegas Home Prices Are Low Relative to Recent Highs

    There have been articles claiming that Las Vegas is ready for another bust. However, prices are declining somewhat as new housing stock comes onto the market. This explains why the inventory of unsold existing homes doubled at the end of 2018. Yet the demographic trends that keep the Las Vegas housing market so hot aren't stopping.

    This means that the Las Vegas real estate market is seeing a lull with a guarantee that the price will start to rise. The Las Vegas housing market is a great place for real estate investment. It remains relatively affordable than the expensive seller markets in the US. When people lose their jobs in great numbers, home prices crash as they did in Las Vegas a decade or so ago.

    Homes went from an average price of over $300,000 to less than $150,000. Home prices have recovered, though due to inflation, they remain well below historic peaks. Likewise, Las Vegas foreclosure rates have fallen but they remain high by national standards. Around one in a thousand homes are foreclosed on each month.

    Las Vegas Housing Prices Are Rising Slowly but Surely

    The wide-open deserts around Las Vegas constrain the Las Vegas real estate market. The federal government owns the vast majority of the state. The Clark County government asked the federal government to allow them to take over 38,000 acres of land and start building housing. Nevada Congressional delegation has to ask the Bureau of Land Management, and they may take years to give their permission if they ever do.

    This means that Las Vegas is surrounded by a lot of open land, but it cannot simply expand to meet demand. This will continue to drive up prices in the Las Vegas housing market. We don't think the Las Vegas housing market is set up for a bust because it isn't overheating. The home values have gone up 1.8% over the past year. That's a healthy growth rate, whereas double-digit price increases are unhealthy. This rate is skewed by the number of new luxury homes coming onto the market and the constant churn at the high end of the market.

    Las Vegas Is Landlord Friendly

    Unlike many other Western states, the Las Vegas real estate market is landlord-friendly. It isn't difficult to evict non-paying tenants from Las Vegas investment properties. In general, they have five days from the date rent is due to “cure” the problem or eviction can begin. The same time frame is used to correct issues like lease violations, after which the person can be evicted. After those five days, the case can go to court, and these are landlord-friendly. Rulings typically arrive the same day, after which point the tenant has one day to leave the premises.

    Landlords don't have to pay interest on deposits. There are no limits on late fees, though the late fees due must be spelled out in the rental agreement. There is no payment grace period set by state law. All of this adds up to the Las Vegas real estate market being a paradise for landlords.

    Update: On July 1st, 2019, a new tenant protection legislation named SB 151 officially went into effect. It provides tenants with more time to deal with the consequences of eviction after they have had an eviction notice posted on their homes. They will now have seven judicial days to pay their rent or quit. The previous time frame was five calendar days.

    For landlords, this new housing legislation also enables them to utilize an attorney or agent to prosecute the eviction action on their behalf. They will now need to go find a permitted eviction process server to carry out these tasks. Those who oppose SB 151 claim that giving tenants more time to go through the eviction process, will make it more difficult for owners to get their properties back on the rental market.

    Las Vegas Job Market Attracts People

    The Las Vegas job rate has ranged from half a point to a full point above the national unemployment rate. However, that's better than the unemployment rate in Arizona, Salinas, or the San Fernando Valley. And it is places like that sending de facto refugees to Las Vegas. The diverse economy of Las Vegas includes low-skill but good-paying jobs in entertainment, hospitality, and services. It draws thousands of new residents each year. This growth, coupled with its unusual economic basis, has made Las Vegas one of the wealthiest cities in the country.

    Since the 1990s, Las Vegas has had one of the fastest-growing employment bases in the country, benefiting from a large labor pool and a favorable business climate. These conditions enabled city promoters to entice businesses of all kinds to choose Las Vegas over California. Every job-killing regulation in California drives businesses to Oregon and Nevada, too, taking jobs with them. This explains why future job growth for the next ten years is expected to be nearly 40%, well over the 33% expected for the nation as a whole. A growing supply of jobs will propel the demand for the Las Vegas housing market.

    Las Vegas Rent Prices Are On the Rise

    During the Great Recession, Las Vegas went from a fifth of its residents renting to nearly two-fifths. As the job market and personal credit improved, the area is back to having around 19% of residents choosing to rent. However, rents are on the rise. While homes are being built, many people are unable to afford them. This is because the developers who survived the Great Recession are maximizing their profits by building luxury homes, not the affordable homes that many want.

    Due to an improving local economy and ongoing population growth, the demand for apartments remains strong in Southern Nevada. For those who can afford Las Vegas investment properties, this guarantees a large rental population that isn't going to be able to afford the new upscale properties that are coming onto the market.

    As of May 14, 2022, the average rent for a 1-bedroom apartment in Las Vegas, NV is currently $1,306. This is a 27% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Las Vegas decreased by -12% to $970. The average rent for a 1-bedroom apartment increased by 4% to $1,306, and the average rent for a 2-bedroom apartment increased by 3% to $1,600.

    • Two-bedroom apartment rents average $1,600 (a 27% increase from last year).
    • Three-bedroom apartment rents average $2,095 (a 17% increase from last year).
    • Four-bedroom apartment rents average $2,405 (a 12% increase from last year).

    The Las Vegas real estate market will be a great place to invest in real estate in 2022 based on these trends. There was a short-term decline in the rents but they are rising back. The unemployment rate is also decreasing so it is a great time to snatch up hot real estate deals by selecting the best neighborhoods.

    Another report, issued by the Nevada State Apartment Association (NVSAA) shows that Southern Nevada’s apartment market is starting to stabilize, with rents projected to rise more slowly this year than previously projected. The report, produced by the NVSAA based on data provided by CoStar, predicts that apartment rents in Southern Nevada will increase by more than 20 percent from the end of the first quarter of 2022 to the end of the same quarter one year later. The average monthly rent in the first quarter was $1,451, up from $1,198 a year earlier.

    Meanwhile, local apartment vacancy rates remain stable, with the average vacancy rate during the first quarter of 2022 at 5.4%. That’s up 0.3% from the same time in 2021. Local apartment construction is also on the rise, with the industry projected to catch up with demand by the end of 2022. The report showed more than 7,000 new local apartment units under construction through the first quarter, compared to about 3,800 units under construction during the same time last year.

    The average size for a Las Vegas apartment is 893 square feet with studio apartments being 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. You can, of course, charge much more for a three or four bedrooms single-family home than an apartment.

    The most affordable neighborhoods in Las Vegas are Beverly Green, where the average rent goes for $1,061/month, Crestwood, where renters pay $1,061/mo on average, and Francisco Park, where the average rent goes for $1,061/mo. Other good neighborhoods for affordable rentals include Hillside Heights ($1,061), Huntridge Park ($1,061), and John S. Park ($1,061), where the asking prices are below the average Las Vegas rent of $1,471/mo.

    The most expensive neighborhoods by Average Rent are:

    Las Vegas Neighborhood Average Rent
    Mountain Trails $2,591
    Sun City $2,591
    The Hills $2,591
    Red Rock $2,438
    Amber Hills $2,335
    The Canyons $2,125
    The Crossing $2,125
    Paradiso $2,036
    Summerlin Village $2,036
    The Paseos $2,036

    California's Loss Is Nevada's Gain

    A $475,000 median price may be steep if you're coming from the heartland where a mid-market home costs $150,000 to $200,000. However, tax refugees from California flooding into Nevada find that same house to be an outright bargain compared to the $781,050 price for a comparable property in Los Angeles.

    Southern Nevada is one of the cheaper metropolitan areas in the United States, and it is a fraction of the cost of living in California on nearly every front. This explains why you see so many California license plates in Vegas and why it costs $120 to rent a moving truck to go from Vegas to San Francisco but $2000 to come to Las Vegas.

    As per the data by Lasvegasrealestate.org, the luxury home market has expanded as 30% of buyers are moving from California to take advantage of Las Vegas' low cost of living. Even the most expensive custom homes from builders such as Blue Heron are found to be a bargain for out-of-state buyers and investors.

    Possibly our second-largest market is retiree buyers in 55+ Communities who enjoy the weather, health care, and activities that only Las Vegas can combine in one city at a value not matched in any major city anywhere in the USA.

    Nevada Is the Ultimate, Low Tax Locale

    While those who own Las Vegas investment properties will need to pay their mortgage if they don't pay cash for the property and ongoing expenses like maintenance and insurance, Nevada offers very low taxes. There is no state income tax.

    Nevada's property tax rates are among the lowest in the U.S. The state's average effective property tax rate is just 0.69%, which is well below the national average of 1.08%. Homeowners in Nevada are protected from steep increases in property tax bills by Nevada's property tax abatement law, which limits annual increases in property tax bills to a maximum of 3% for homeowners.

    Thus, even if home values increase by 10%, property taxes will increase by no more than 3%. The taxable value of a property is calculated as the cash value of the land (the amount the land alone would sell for on the market), and the replacement cost of all buildings minus depreciation of 1.5% per year since construction.

    The assessed value is equal to 35% of that taxable value. Thus, if your County Assessor determines your home's taxable value is $100,000, your assessed value will be $35,000. Tax rates apply to that amount.

    There are numerous tax districts within every Nevada county. Hence, when comparing between counties, it is useful to look at average effective rates. Clark County contains almost 75% of the state's residents and includes Las Vegas. The average effective property tax in the county is 0.70%, slightly higher than the statewide average, but still significantly lower than the national average.

    If you're planning to buy in Nevada, the most common type of home loan is a 30-year fixed-rate mortgage. This option gives you plenty of time to pay back the loan and your interest rate remains the same for the duration of the loan's life unless you refinance. You can also consider a 15-year fixed-rate mortgage.

    It allows you to pay off your loan quicker and comes with a lower interest rate, but your monthly payments will be higher. As we write this, the average Nevada rate for a fixed 30-year mortgage is 3.46%, and for a fixed 15-year mortgage it is 2.83%.

    Nevada Real Estate Investment Markets

    Las Vegas is a shining beacon in the desert for those fleeing California or simply hoping to make it big. Many others simply come to earn a living serving the many tourists who visit here each year or work at the firms relocating to this tax haven. All of this gives the Las Vegas real estate market a bright future.

    According to PwC's annual real estate report, the Las Vegas housing market will enjoy a population growth rate that is well above the national growth rate. This is a continuing trend as data from the US Census Bureau shows a net migration of 6.46% from 2012-2016.

    This earned the Las Vegas real estate market a spot among the best places that people were moving to in 2018. The city will hold this title well into 2020 according to the forecast. Good cash flow from Las Vegas 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 Las Vegas in a growing neighborhood would be key to your success. If you invest wisely in Las Vegas real estate, you could secure your future. The best investment is now looking for a rental property that will generate good cash flow.

    Your best tenants would be the retirees who intend to relocate to Las Vegas and want to purchase property to rent out. The running costs for owning and managing a Las Vegas rental property should not be high. A cheaper neighborhood in Las Vegas 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 such as duplex and triplex in Class A neighborhoods.

    The inventory is low, but opportunities are there. There are 50 neighborhoods in Las Vegas. The Paseos has a median listing price of $666.9K, making it the most expensive neighborhood (Realtor.com). Sunrise is the most affordable neighborhood, with a median listing price of $152K.

    Some of the most popular neighborhoods in Las Vegas are Paradise, Enterprise, and Spring Valley. Here you'll find the maximum no. of listings. In Spring Valley, Las Vegas, NV, the home prices range from $44.9K – $18.5M while rental properties are within a range of $795 – $11K.

    Even as Las Vegas home prices have reached new heights, the market remains attractive to residential real estate investors. As they continue to compete for potential investment properties at the lower end of the market, the challenges for first-time homebuyers will remain. Millennial homebuyers can't outbid real estate investors and hence end up renting.

    As with any real estate purchase, act wisely. Evaluate the specifics of the Las Vegas housing market at the time you intend to purchase.

    There are many other markets near Vegas, that you can choose for real estate investing. As a result of an influx of companies and jobs in Northern Nevada, strong housing demand continues to put pressure on the available supply. The Reno real estate market is ideal for investors for several reasons. Supply is limited, and demand is growing.

    Rental rates are driven by several competing markets that aren't going to slow down any time soon. Forget owning a couple of condos in Las Vegas and invest in a more affordable, stable real estate market like Reno. Good cash flow from Reno investment properties 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.

    Nevada Out of State Investment Opportunities  

    On the east of Nevada lies the state of Utah, where you can consider investing in Salt Lake City. The Salt Lake City real estate market was ranked one of Millennials' toughest real estate markets due to limited supply relative to demand. Salt Lake is a “slightly hot” real estate market at the moment.

    The economy is strong and the city achieves the lowest unemployment rate at 2.1%. The median days on market is 30.5 days, with inventory moving 6 percent faster than last year and 30.5 days faster than the U.S. overall. Home prices in Salt Lake City are expected to rise by record levels in 2020. A strong job market and a robust economy have contributed to the rising housing costs over the past seven years.

    Ogden is another good and affordable real estate market in the neighboring state of Utah. The Ogden housing market is appreciating because people move here for work as often as they do live. For example, there are many good-paying jobs in the IT, life sciences, aerospace, and outdoor products manufacturing industries. There are civil service jobs with the state tax office and the local hospital. And then there's the college. This is on top of Utah's employment growth rate of roughly 3 percent a year.

    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 Las Vegas.

    Not just limited to Las Vegas or Nevada 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 Las Vegas turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.


    Latest Market Data, Trends, and Statistics
    https://www.lasvegasrealtor.com
    http://myresearcher.com/glvar-section-new
    https://www.zillow.com/las-vegas-nv/home-values
    https://www.lasvegasrealestate.org
    https://www.littlebighomes.com/real-estate-las-vegas.html
    https://www.neighborhoodscout.com/nv/las-vegas/real-estate#description
    https://www.realtor.com/realestateandhomes-search/Las-Vegas_NV/overview
    https://summerlincommunities.com/las-vegas-real-estate-market-update-august-2020/

    LAS VEGAS' ECONOMIC & JOB GROWTH INDICATORS
    https://en.wikipedia.org/wiki/Las_Vegas
    https://downtown.vegas/visitors-guide/fun-facts

    Low taxes
    https://smartasset.com/taxes/nevada-property-tax-calculator
    Geographical constraints
    https://www.reviewjournal.com/news/politics-and-government/clark-county/clark-county-unveils-land-proposal-draws-ire-from-groups

    Price growth
    https://www.mashvisor.com/blog/las-vegas-housing-market-2019
    https://knpr.org/knpr/2018-09/las-vegas-housing-booming-does-mean-another-bust-horizon
    https://thenevadaindependent.com/article/las-vegas-appears-to-be-entering-a-steady-housing-market
    https://www.forbes.com/sites/forbesrealestatecouncil/2018/07/17/why-las-vegas-luxury-real-estate-is-the-next-big-market-boom/#7b20b1c41543

    Landlord friendly
    https://www.costellomgmt.com/landlord-tenant-laws-nevada
    http://lasvegasgleaner.com/the-rent-is-too-damned-highhttps://www.avail.co/education/laws/nevada-landlord-tenant-law

    Loss of California
    https://www.ktnv.com/news/nevada-sees-population-boost-as-people-leave-california-in-droves

    California refugees
    https://finance.yahoo.com/news/hottest-housing-market-2018-163701109.html
    https://www.ktnv.com/news/nevada-sees-population-boost-as-people-leave-california-in-droves

    Job Market
    https://patch.com/california/encino/map-unemployment-rate-drops-in-state-in-may
    https://www.sacbee.com/latest-news/article213798654.html

    Foreclosure rates
    https://www.reviewjournal.com/business/housing/las-vegas-foreclosure-rate-dropping-still-among-highest
    https://www.realtytrac.com/statsandtrends/foreclosuretrends/nv/clark-county/las-vegas

    Filed Under: Growth Markets, Housing Market, Real Estate Investing, Real Estate Investments

    Where To Buy Atlanta Investment Properties In 2022?

    May 9, 2022 by Marco Santarelli

    Atlanta Investment Properties

    Atlanta investment properties are sought by all types of investors because you’re paying for quality real estate when you decide to buy them in good neighborhoods. Atlanta real estate has continued to appreciate faster than most communities in the nation. Starting at just $100,000, the Atlanta investment properties have an annual appreciation rate of over 7%.

    Atlanta property appreciation rates in the latest quarter were at 6.44%, which equates to an annual appreciation rate of 28.36%. Property values have risen by 15.25% in the last twelve months, making a good fortune for short-term investors in Atlanta. In this article, we shall discuss some of the best neighborhoods in Atlanta where you can buy investment properties.

    Is it the Right Time to Buy an Investment Property in Atlanta?

    The short answer to this question is yes. The longer answer is: yes, definitely, especially if you’re buying in the right Atlanta neighborhoods. If you asked about the Atlanta real estate market 15 years ago, the answer would be someone pointing at the suburbs. The city was expanding in all directions. The problem was that the infrastructure couldn’t grow fast enough.

    Its urban core is seeing a wave of redevelopment as people choose to pay more to be close to jobs, amenities, and public transportation. And this has caused Atlanta's real estate development to surge. Almost four billion dollars worth of real estate investment has poured into downtown over the past ten years, and that much more is either on the drawing board or under construction.

    Atlanta Investment Properties

    The downtown population has risen roughly 2% a year per year since 2010. While Atlanta home prices rose roughly 10% between 2016 and 2017, they are expected to go up more than that much in 2022. Atlanta home values have gone up 17.9% over the past year. Overall, the Atlanta housing market trend is much hotter than the rest of the nation. Atlanta was ranked #11 in the U.S.

    Markets to Watch by PWC.com. Cities like Atlanta & Dallas are benefiting from fundamental demographic and economic shifts. It is one of the emerging markets in the South's Atlantic region. All 11 markets including Atlanta that make up the region are ranked in the good potential for investment and development. Opportunities are expected to be readily available in these markets.

    The continuing attractiveness of primary markets like Atlanta makes a lot of sense to buy investment properties.  Atlanta has experienced net migration over the last five years. In Atlanta, rents have recovered and grown – The high construction costs contribute to the upward pressure on rents.

    Atlanta Investment Properties For Sale

    Atlanta Investment Property Forecast 2022

    What are the Atlanta real estate market predictions for 2022? The Atlanta housing market is expected to see one of the country's steepest rises in home prices next year, according to the 2022 housing forecast from Realtor.com. The forecast shows a price growth of 3.5% in 2022, putting metro Atlanta in the top 10 markets expected to experience huge home price increases. The sales growth is expected at 10% in 2022.

    Population growth has had a positive impact on the housing market in Atlanta. Nearly 285,000 people moved to Georgia in 2019, according to data from the U.S. Census Bureau. This migration has been made possible the state's consistent ‘best state for business' rankings. Area Development magazine named Georgia No. 1 for business – for seven straight years (2014-20). Nine out of 10 Fortune 500 companies have operations in Georgia – and 18 of these have made Georgia their world headquarters.

    Much of this migration is driven by the strong business environment in Atlanta and the relative affordability of the city. Its robust knowledge-based economic ecosystem attracts new talent to the city. The net migration has led to an ever-increasing demand for housing in Atlanta which cannot be met with the current pace of new construction. The Atlanta housing market has a housing shortage which will continue to contribute to increasing prices. Atlanta home prices on average are less expensive than the national average.

    Despite being below the national average, Atlanta home prices have more than doubled since 2012, and are projected to continue increasing. Let us look at the price trends recorded by Zillow over the past few years. Atlanta has a track record of being one of the best long-term real estate investments in the U.S. Since Feb 2012, the Atlanta Metro home values have appreciated by nearly 165% — Zillow Home Value Index. 

    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 Atlanta metro is currently $344,420. It indicates that 50 percent of all housing stock in the area is worth more than $344,420 and 50 percent is worth less (adjusting for seasonal fluctuations). In Jan 2021, the typical value of homes in Atlanta was around $267,000. Atlanta home values have gone up 28.6% over the last twelve months.

    NeighborhoodScout.com's data also shows that Atlanta real estate appreciated by nearly 109.97% over the last ten years. Its annual appreciation rate has been averaging at 7.70%. This figure puts it in the top 10% nationally for real estate appreciation. During the latest twelve months, the Atlanta appreciation rate was nearly 15.25%, and in the latest quarter, the appreciation rate was 6.44%. If it remains steady, it annualizes to a rate of 28.36%.

    This figure corroborates Zillow and Realtor.com's forecast, which also predicts that home prices in this region are expected to increase in the next twelve months. In other words, if you buy a property now, then after twelve months, you can expect a good ROI. It is going to be a strong seller's market that will be much more stable than the unpredictable trends experienced this year.

    Here is Zillow's home price forecast for Atlanta, Fulton County, and Atlanta Metropolitan Area. The forecast is until January 2023 and you can expect to see very strong home price gains in this region. It is going to be a strong seller's market that will be much more stable than the unpredictable trends experienced last year.

    • Atlanta-Sandy Springs-Roswell Metro home values have gone up 28.6% over the past year and the latest forecast is that they will rise by 23.3% over the next twelve months.
    • This figure corroborates Realtor.com's forecast, which also predicts that home prices in this region are expected to grow steadily in the next twelve months,
    • Atlanta City home values have gone up 18.2% (current value = $366,797) over the past year and will continue to rise at a slower pace in the next twelve months.
    • Fulton County home values have gone up 22.2% (current value = $402,614) over the past year and will continue to rise at a slower pace in the next twelve months.
    • Sandy Springs home values have gone up 19.3% (current value= $622,393) over the past year and will continue to rise at a slower pace in the next twelve months.
    • Roswell home values have gone up 24.1% (current value= $557,374) over the past year and will continue to rise at a slower pace in the next twelve months.

    Here is the visual representation of how home prices have grown from 2012 and their forecast (in the green area) until Jan 2023.

    Atlanta Real Estate Market Forecast
    Courtesy of Zillow.com

    Is Atlanta is going to remain a seller's real estate market amid the ongoing Coronavirus pandemic, which no one knows when it is going to end? These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? The constraint on available inventory and a decline in new listings is keeping the Atlanta real estate market skewed to sellers. Atlanta 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. The Atlanta real estate market benefits from a large and robust economy.

    According to the data insights provided by the Bureau of Economic Analysis, the Atlanta metro area was the tenth-largest in the U.S. and among the top 20-largest in the world. The housing demand in Atlanta is still high, according to online real estate brokerage SimpleShowing. To counter the effects of this ongoing crisis, FED did an emergency rate cut which put rates at their lowest level in the last 50-year span.

    The low-interest rates are already leading to an increase in mortgage applications. Buyers looking for this opportunity to invest or buy a house. Low-interest rates coupled with Atlanta’s solid job market could be a boon for the local real estate market even during the time of the Covid-19 pandemic.

    Keeping aside the short-term effects of Covid-19 which would hopefully end, the Atlanta housing market is strong. There are no signs of weakness in the Atlanta real estate prices. 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, Atlanta 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. This housing market is skewed to sellers due to a persistent imbalance in supply and demand.

    Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment. For buyers in Atlanta, the mortgage rates are at their lowest. So they should take advantage of scooping up their favorite deals which otherwise are taken away by seasoned investors in the bidding wars.

    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 Atlanta 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.

    Investment Property For Sale In Atlanta

    Atlanta, GA is one of the top markets for single-family rental homes in the US. Many young families and couples thinking about the future are interested in renting such a property. Therefore, the demand for single-family homes for rent in Atlanta is high. Another research regarding Atlanta’s population and demographics reveals that 49% of the population in the city lives in family households with kids.

    In comparison, 38% of people are living alone. People who inhabit family households are more likely to rent single-family homes rather than apartments because they offer more space and privacy. As we write this, there are 81 investment properties for sale in Atlanta on Zillow.

    If you are looking for turnkey rental properties, Norada Real Estate Investments can save you time by finding the best investment properties in Atlanta. We can provide you with newly rehabbed properties with screened tenants in place. Properties start at $100,000, providing up to an 11% Cap Rate.

    Best Places To Buy Atlanta Investment Properties in 2022

    If you are dreaming of owning an investment property, what better place to do that than in Atlanta, GA? The city has a thriving real estate market that promises lucrative returns. Atlanta suburbs offer a diversified population in which a newcomer can easily fit. Most of the Atlanta investment properties in the suburban areas are single-family rental homes.

    Top Reasons to Invest in Atlanta Investment Properties

    • Atlanta is one of the Top Rental Markets in the U.S.
    • Newly rehabbed properties with tenants.
    • Properties start at $70,000.
    • Up to $750/mo cash flow.
    • 500 people move to Atlanta every day!
    • 2 million more people are expected by 2030.
    • 1-year appreciation forecast of 20% (Zillow).

    Now the question is, where to buy investment properties in Atlanta? If you looking to invest in Atlanta, here are the 10 best places to buy Atlanta investment properties in 2022.

    1. Hanover West, Atlanta

    Hanover West is a small, legacy development built in the 1960s. It offers several amenities that attract residents of all ages. Niche ranked this one of the best places to buy a house in Atlanta, but they rarely come on the market. This allows landlords to charge a median rent of $1100 per month. The average home value here is higher than the national average and well above the average for Atlanta, forcing many who want to live here to rent.

    2. Midtown Atlanta, Downtown Atlanta

    Downtown adjacent areas like Midtown and Buckhead have seen prices rise substantially. If you can buy an investment property in Midtown Atlanta, you can rent it out for a top dollar. These Atlanta investment properties will be valued for their space and privacy in an area quickly converting to multi-family housing. The median rent here is about $1800 per month. Properties close to Georgia Tech profit from the steady stream of renters.

    3. Buckhead, Atlanta

    Buckhead is a great place to buy Atlanta investment properties. The homes are worth a lot because of their proximity to downtown. Then there’s the fact that it is full of mansions and estate homes, though there are a few small cottages that can be rented out as starter homes. Or you could buy an old bungalow and replace it with the four to six-bedroom executive homes becoming the norm for this area.

    The urban neighborhood of Buckhead Heights has a population of roughly 2,130 people. Residents have been ranked as A, based on ethnic and economic diversity, with many of its residents having bachelor’s or master’s degrees.

    4. Gwinnett County, Georgia

    This area is in such demand that time on the market fell 20% in 2018. Median home prices rose 5% here year over year. Part of this is because Gwinnett schools are so good. Buford in Gwinnett County had the best public schools in the state.

    5. Grant Park, Atlanta

    Grand Park is the oldest city park in Atlanta, and the same name applies to the residential district around it. This area is close to downtown, but it is full of older single-family homes that command high rents for the privilege of living here. You’ll receive significant cash flow from investment properties in Grant Park, Atlanta if you can buy low since the median rent in 2019 was $1300 a month.

    6. Decatur, Northeast of Atlanta

    Decatur was ranked one of the best suburbs in Georgia by Niche.com. Decatur is a city in Georgia, northeast of Atlanta. Even better, they were ranked 32nd on Niche’s best places to live in America list in 2017. It was also named one of the best suburbs for millennials in 2016. Buying investment properties in the suburbs of northeast Atlanta can be a great investment step for 2022.

    7. Alpharetta, North of Atlanta

    Alpharetta is an attractive real estate market to home buyers and renters, and that makes it a good place for real estate investors. It is a suburb north of Atlanta. The real estate market is a mix of condos and detached single-family homes. Alpharetta had numerous schools rank 10 out of 10 at Greatschools.org.

    8. Peachtree Heights West, Atlanta

    Peachtree Heights West is located in southwest Atlanta. This upscale neighborhood has been ranked as one of the hottest in the city due to increasing sales and rental activity. It is a great place to buy an investment property in Atlanta especially an apartment for rental income. It is a short distance south of the already overpriced Buckhead Forest. This area is a great place for investing in Atlanta investment properties since median rents are well above average at more than $1700 per month.

    9. Ormewood Park/Glenwood Park, Atlanta

    Ormewood Park/Glenwood Park is located between Grant Park and East Atlanta Village. This area is dotted with 1920s Craftsman-style homes. Redevelopment in the area is replacing affordable single-family homes with multi-family housing and upscale homes. Many move here to be close to its top-notch charter schools. That’s part of the reason why median rents were a little below $2000 in Ormewood Park.

    10. Old Fourth Ward, Atlanta

    Old Fourth Ward is a historic industrial district that was, at one point, nearly abandoned. It is being revitalized into a hip neighborhood commanding rent of around $1700. There are significant opportunities for real estate investors to buy investment properties in Old Fourth Ward, Atlanta, since there are still properties in the area that need to be renovated to be attractive to renters.

    Should You Buy Atlanta Investment Properties: The Conclusion

    It is obvious by now that Atlanta real estate market is very strong. This leaves some worrying if it is a bubble that’s going to pop. The answer to that is no. The metro Atlanta area has seen stellar growth second only to Houston real estate market. Demand has caused home values to rise around ten percent a year for the last few years. Housing prices in Atlanta dipped in 2017, allowing prices to adjust.

    Average home prices today are similar to where they were at the 2006 peak, but they’re more affordable when you take inflation into account. You should consider buying an investment property in Atlanta if you want to diversify your holdings beyond stocks and bonds. Remember, choosing the right property, maintaining it, dealing with tenants—all that takes work.

    A rental property should be turnkey and rent-ready. A good investment property is fully refurbished or a new construction residential property. The property must be in growth markets and must produce a positive cash flow. There are 13 tips to follow when buying a rental property for single-family dwellings.

    Purchasing the best investment properties in Atlanta appears to be on the pricier end in 2022. However, this is because you’re also purchasing other positive aspects of the estate such as security, and community diversity. You’re paying for quality real estate in Atlanta when you decide to buy investment properties in the neighborhoods listed above. One disadvantage may come from families looking for premier schools for their children.

    Most of the schools surrounding the neighborhoods listed in this article are given ratings of B on Niche.com. Considerably, it may be a not so good decision for parents who want their children to attend the best schools in the country.  That being said, Atlanta appears to be a wise choice of city for the youth. In many of the above-mentioned neighborhoods, their residents seem to be young adults, based on their educational attainment. Likewise, Atlanta has come to be a bustling economic center.

    When looking for the best real estate investments in Atlanta, you should focus on neighborhoods with relatively high population density and employment growth. We’ve already listed above some of the best neighborhoods to buy Atlanta investment properties.

    Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

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


    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

    Downtown investment of four billion to date, four billion in the future
    https://www.bizjournals.com/atlanta/news/2018/03/08/atlantas-downtown-becomes-a-hot-real-estate-market.html

    Grant Park, Hanover West
    https://www.mashvisor.com/blog/atlanta-real-estate-market-investments-2018/

    Decatur rankings, Gwinnett County’s schools
    https://www.ajc.com/news/local/you-live-one-georgia-best-suburbs/Ef0lUjpjyMhOQbRZ9uR7XJ

    Alpharetta
    https://www.movoto.com/guide/atlanta-ga/best-atlanta-suburbs

    Buckhead
    http://metroatlantasuburbs.com/communities/buckhead-real-estate

    Peachtree Heights West
    https://atlanta.curbed.com/2017/12/7/16746602/peachtree-heights-atlanta-hottest-neighborhood=2018

    Ormewood Park
    https://www.greatamericancountry.com/places/local-life/5-great-neighborhoods-in-atlanta

    Old Fourth Ward
    https://atlanta.curbed.com/2017/12/7/16746602/peachtree-heights-atlanta-hottest-neighborhood-2018

    Filed Under: Real Estate Investing

    Should You Invest In The Dallas Real Estate Market?

    May 6, 2022 by Marco Santarelli

    dallas real estate investment

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

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

    Why Should You Invest In Dallas Real Estate?

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

    Top Reasons to Invest in The Dallas Real Estate Market

    Dallas real estate investment

    1. The Dallas Housing Market Forecast 2022

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

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

    Dallas County Real Estate Trends
    Courtesy of Mymetrotex.com

    2. Booming Economy of Dallas

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

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

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

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

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

    3. Population Growth

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

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

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

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

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

    4. Growth of Short-Term Rentals

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

    Airbnb is still the biggest player in the short-term rental market, with more than 7 million listings in over 220 countries. Dallas ranks among the top 20 cities for Airbnb based on occupancy data. The platform has registered remarkable growth in the Dallas area – an indication that most people require fast accommodation services.

    The vacation rental giant is on track to be a $200 million-a-year force in Texas, with Dallas among the cities leading the charge. Booked Airbnb listings in Dallas grew by 34 percent last year, according to data analyzed by the Dallas Business Journal. This could be a green flag to invest in the Dallas short-term rental market.

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

    5. Low Cost of Living In Dallas

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

    6. High Rent to Home Price Ratio

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

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

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

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

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

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

    7. Dallas Has Low Crime Risks Neighborhoods

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

    8. Technology and Innovation in Dallas

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

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

    9. Invest In Dallas | Get Government Incentives

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

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

    Where To Invest in The Dallas Real Estate Market?

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

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

    1. Cockrell Hill, Dallas, TX

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

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

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

    2. Frisco, Dallas, TX

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

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

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

    3. Lochwood, Dallas, TX

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

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

    4. Munger, Dallas, TX

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

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

    5. Bryan Place, Dallas, TX

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

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

    6. Allen, Dallas, TX

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

    7. Campbell Green, Dallas, TX

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

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

    8. Coppell, Dallas, TX

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

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

    9. North Dallas, Dallas, TX

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

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

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

    10. Far North Dallas, Dallas, TX

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

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

    11. Farmers Market District, Dallas, TX

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

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

    12. University Park, Dallas, TX

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

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

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

    13. Near East, Dallas, TX

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

    14. Highland Park, Dallas, TX

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

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

    15. Oak Lawn, Dallas, TX

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

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

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

    16. Bluffview, Dallas, TX

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

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

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

    17. Lake Highlands, Dallas, TX

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

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

    18. Main Street District, Dallas, TX

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

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

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

    Are You Buying Your First Investment Property in Dallas?

    Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

    NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability. Consult with one of the investment counselors who can help build you a custom portfolio of turnkey cash-flow rental properties in the various growth markets across the United States.

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


    Remember, caveat emptor still applies when buying a property anywhere. This article aimed to educate investors who are keen to invest in Dallas real estate in 2020. Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your own research and taking the help of a real estate investment counselor. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

    References

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

    Filed Under: Real Estate Investing

    • 1
    • 2
    • 3
    • …
    • 99
    • Next Page »

    Real Estate

    • Atlanta
    • Birmingham
    • Cape Coral
    • Charlotte
    • Chicago

    Quick Links

    • Markets
    • Membership
    • Notes
    • Contact Us

    Blog Posts

    • Huntsville AL Housing Market: Prices | Trends | Forecast 2022
      May 18, 2022Marco Santarelli
    • Seattle Housing Market: Prices | Trends | Forecasts 2022
      May 18, 2022Marco Santarelli
    • Austin Real Estate Market: Prices | Trends | Forecasts 2022
      May 18, 2022Marco Santarelli

    Contact

    Norada Real Estate Investments 30251 Golden Lantern, Suite E-261 Laguna Niguel, CA 92677

    (949) 218-6668
    (800) 611-3060
    BBB
    • Terms of Use
    • |
    • Privacy Policy
    • |
    • Testimonials
    • |
    • Suggestions?
    • |
    • Home

    Copyright 2018 Norada Real Estate Investments