Dallas, Texas, is one of the fastest-growing metropolitan areas in the country, with a large, diversified, and growing economy. With home prices below the national average and solid cash flow potential, Dallas has many traits that support favorable long-term conditions for real estate investors.
Population and Labor Market
Located in Northeast Texas, the Dallas metropolitan area is actually composed of two large cities and one small city: Dallas and Fort Worth, and then the smaller city of Arlington that lies between them. Combined, the Dallas metropolitan area has a population that is growing well above the national average. The median age of residents in Dallas is just under 33 years old, which is right around the peak homebuying and household formation age—which indicates strong and sustainable demand for housing in the region.
Dallas’ large and diverse economy helps insulate it from economic downturns. The area has large medical and educational institutions and a significant airline presence anchored by American Airlines and Southwest Airlines. The unemployment rate is low but slightly above the national average and has ticked up slightly of late.
Home Prices
Despite strong demand and a strong economy, investing conditions in Dallas remain attractive. As of this writing, the median sales price in the Dallas area is just above $400,000—which is relatively close to the national average but below that of cities with similarly sized economies.
It’s important to note that while prices in Dallas have been relatively flat over the last several months, the pace of growth has…