Gain insights about the 2024 Dallas real estate market to determine if it’s an optimal
Welcome to our comprehensive guide to the Dallas real estate market in 2024! Here, we’ll offer you a detailed overview of the current state of the Dallas housing market, including population and employment trends. You’ll learn about the factors that are driving the market’s stability and resilience, the best places to invest and some of the major developments going on in the area.
The reason why DFW real estate investors are so drawn to the area is the steady population growth, adding an estimated 170,000 residents between 2021 and 2022 alone. This influx of new residents, combined with a strong job market that has added almost 150,000 jobs in the past 12 months, has created high demand for housing.
Despite its growth and popularity, Dallas remains an affordable option compared to other major U.S. markets. The affordability of the Dallas-Fort Worth real estate market, combined with the area’s diverse economy, which includes strong sectors such as manufacturing, transportation and logistics, construction, professional services, and healthcare, makes Dallas a hotspot for those seeking real estate investment opportunities.
Our guide will provide you with the information you need to make informed decisions about investing in the Dallas real estate market. Whether you’re a new or seasoned investor, you’ll find valuable insights and data-driven analysis to help you navigate the market with confidence.
Dallas Housing Market Trends
In this section, we’ll discuss Dallas’ median home values and rents in 2024 and over the last ten years. These trends are important for real estate investors to understand affordability and equity growth opportunities in Dallas.
Home prices in the Dallas metro are just above the national average.
In January 2024, the average single-family home value in the Dallas metro area stood at $366,326. This is 5.52% higher than the national average home value, which hovers around $346,048. This indicates a robust, if slightly pricier, regional market that continues to attract buyers.Inside the city precincts, the housing scenario paints an interesting picture.
According to Redfin, the city of Dallas saw the median home price rise sharply to $407,000 in December 2023, marking a significant 19.7% increase year over year.
Despite rising home prices, GuardianWealth investors in Dallas have managed to find value, with an average purchase price of $240,000. This is 30.64% lower than the national average. With Dallas becoming progressively expensive, GuardianWealth’s teams have strategically moved 30+ miles north and east of the Dallas metro for more lucrative opportunities.
Turning to data from the MetroTex Association of Realtors, the Dallas metro area had around 3.4 months’ worth of housing supply as of December 2023. Active listings saw a 15.9% increase (93,733 active listings). There was a 7% dip in closed sales – 23,348 closed Dallas home sales. Interestingly despite slower sales, the time homes spent on the market decreased by a day year over year, showing a median of 62 days on market.
Dallas rents are affordable compared to many markets around the nation.
The average monthly rent in the Dallas metro area stands at $1,787, 9.84% lower than the national average rent price of $1,982. This means that renters in Dallas can enjoy a more affordable lifestyle compared to other major cities in the United States.
However, it’s important to note that rent prices can vary widely depending on the location within the Dallas metro area. According to ApartmentList, the median rent in the city of Dallas is $1,354 as of January 2024, representing a 2% year-over-year decrease. This suggests that renters may have more negotiating power in certain areas, while landlords may need to adjust their pricing strategies to remain competitive.
Another key statistic investors should keep in mind is the price-to-rent ratio, which currently stands at 17.08 in the Dallas metro area. While a price-to-rent ratio of 15 or less indicates that it’s better to buy, the Dallas market skews slightly towards renting over buying for the average household. 39.8% of Dallas-Fort Worth metro households prefer to rent, while 60.2% occupy their own homes. This is a large enough market for investors, especially when you’re dealing with a population of over 7 million.
Dallas has been appreciating rapidly.
The Dallas housing market has experienced a remarkable surge in home values over the last decade, attracting the attention of DFW real estate investors. With a cumulative growth from $169,970 in 2014 to $366,326 in 2024, this translates to an impressive annual appreciation rate of 8.91% and a total equity growth of 116%, outpacing the national average home price appreciation rate by 35.12%. This upward trend highlights the real estate investment opportunities present in the Dallas area.
Dallas rents have also been rising consistently.
There’s no debating that the Dallas metropolitan area has been riding a wave of progress for the last decade, especially when it comes to the housing market. This growth is exemplified by the rise in the average monthly rent within the region, which has seen a striking ascent.Over the past 10 years, the average monthly rent in the Dallas metropolitan area has risen by 43.19%, from $1,248 in 2014 to $1,787 in 2024. This upward trajectory equates to a yearly rent appreciation rate of 4.07%. Specifically, Dallas’ rent appreciation trumps the national median monthly rent appreciation rate, outpacing it by 4.12%.
Dallas Population Trends
One of the most promising signs of a strong real estate market for investing is population growth. In this section, we’ll discuss what’s happening in the Dallas metro in that area.
Dallas' population has been growing extremely fast.
Continuously ranked among the fastest-growing regions in the U.S., the Dallas metropolitan area is experiencing a surge in population that’s far from ordinary. As of 2022, the metro area boasted approximately 7.94 million residents, and is projected to reach 8.29 million by the end of 2024, according to the Census Bureau’s Dallas market forecast. This robust population growth in the Dallas metro area is driving positive Dallas market trends in real estate.
Several key factors contribute to this robust growth in the Dallas metro area. A dynamic job market, providing both opportunity and job security, attracts a steady stream of professionals. When combined with a cost of living significantly lower than many coastal metropolises, it’s no surprise that Dallas presents a viable option for those seeking a blend of affordability and prosperity. Moreover, a business-friendly environment, which encourages entrepreneurship and investment, further cements the area’s status as a magnet for both individuals and businesses.
What makes Dallas’s growth even more remarkable is how it compares to the national average. In fact, Dallas’ population growth is a staggering 213.62% faster than the national average. Over the past 12 years, the region grew at an annual rate of 2.2% per year, a net increase of 24.27%.
There is also a demographic shift towards a more diverse population. Dallas’ Hispanic and Asian populations are growing rapidly, and there is an increasing number of young families and professionals moving to the area.
Dallas Employment Trends
Another sign of a good place to invest in real estate is a strong economy. In this section, we’ll discuss what’s happening in with jobs in Dallas.
Dallas has been experiencing Strong job growth.
Dallas, known for its dynamic and diverse economy, consistently outperforms the nation in job growth. As of October 2023, the unemployment rate in Dallas was reported at a low of 3.6%, edging out the national average, which stood slightly higher at 3.8%.
From 2022 to 2023, Dallas experienced an impressive job growth rate of 3.46%, translating to an addition of 144,399 jobs to the workforce. This growth rate was noteworthy, being 106.14% faster than the national average of 1.68%.
However, Dallas lags behind in wage growth compared to national figures, an area that needs attention. Wages and salaries in the Dallas-Fort Worth Metropolitan Statistical Area (MSA) had a growth rate of 3.8% for the 12-month period ending September 2023. Nationwide, however, compensation costs and wages and salaries increased by 4.3% and 4.5% respectively over the same period.
A closer, sector-specific look at employment trends shows that professional and business services had the most employment gain, adding 32,400 jobs overall in the past year. The Dallas-Plano-Irving, TX, division contributed the lion’s share of jobs in this sector, accounting for 19,400 jobs, with Fort Worth-Arlington, TX, chipping in with 4,900 jobs.
Furthermore, financial activities also witnessed substantial job growth, with an increase of 17,400 jobs over the year. The bulk of this job growth emanated from the Dallas-Plano-Irving, TX, division, reporting an increase of 15,300 jobs in this supersector.
Major employers in Dallas
Why Invest in Dallas Real Estate Market Today
In this section, we’ll recap what we’ve covered above in terms of Dallas’ housing market trends, population trends and employment trends to help you understand what makes Dallas a strong place to invest in 2024.
1. Fast growing population
From around 4 million residents in the 1990s to over 7.5 million, Dallas market trends indicate a population consistently on the upswing, growing at a year-on-year rate of 2.2%. This makes it one of the most populous regions in the United States. In fact, the area added more people than any other U.S. metro between 2021 and 2022, with 170,396 new residents.
This rapid population growth creates consistent demand for both rental properties and purchases, leading to increased rental income and property appreciation for investors.
2. Attractive area for businesses
Dallas is not just a haven for businesses. It’s a magnet drawing an impressive number of Fortune 500 and Fortune 1000 companies. The Dallas-Fort Worth metroplex is one of the most sought-after Metropolitan Statistical Areas (MSAs) nationwide for business expansion, new enterprise development, and consistent in-migration.
North Texas’ resilience during the recession and its rapid population growth are among the factors that solidify its position as a vibrant business hub. These features, combined with a blossoming educational sector, create the perfect breeding ground for businesses to thrive. The MSA’s business-friendly ecosystem has elevated Dallas to become a leading global corporate headquarters center, bolstered by a total of 25 Fortune 500 and 45 Fortune 1000 companies located in this bustling metropolis.
Driving this rush of businesses into Texas is the Texas Enterprise Fund (TEF), a state-funded program designed to energize economic growth and foster job creation. This initiative provides performance-based financial incentives to businesses, especially those with projects focused on capital investment and job creation. Interestingly, almost half of the state’s enterprise fund benefits North Dallas, which reaffirms the regions’ attractiveness for businesses moving to the area.
The resulting increase in job creation in Dallas attracts a highly skilled workforce that, in turn, invigorates the housing market. This chain reaction unequivocally makes Dallas a prime hotspot for property investors who are eager to capitalize on the robust housing demand.
3. Strong job growth
Dallas-Fort Worth (DFW) is a powerhouse of economic dynamism and technological fervor that nurtures the growth of businesses. One look at the data demonstrates its credentials as a thriving hub for business. The metro area has added close to 600,000 jobs in the last five years, creating a buoyant Dallas real estate market in 2024. More specifically, the Dallas-Irving-Plano area has outshone all other U.S. markets, making it the leader in job gains across the nation.
It isn’t just the numbers that are exceptional — the makeup of the job market speaks volumes about the quality of opportunities in DFW. Home to nearly 12,000 technology companies and a staggering 450,000 high-tech employees, it is, without a doubt, one of the largest tech business centers in the U.S., second only to Silicon Valley.
Moreover, the area houses industry giants like Texas Instruments, AT&T, Southwest Airlines, and the groundbreaking dating service provider, Match Group. The healthcare industry also thrives here, with reputable institutions like Baylor University Medical Center, and Texas Health Presbyterian Hospital adding to the employment pool.
4. Rising home prices
The housing market in Dallas is experiencing steady price growth, with home values increasing by 115.52% over the last 10 years at an annual rate of 8.91%. This remarkable growth means that if you owned a home in Dallas over the last decade, your property would have appreciated in value by over 110%.
The Dallas-Fort Worth area is forecast to be one of the country’s top two home markets in 2024. With a thriving economy and a population that continues to expand, the city’s housing market is poised for continued growth. Such growth forecasts that Dallas’ real estate market in 2024 would outperform most other areas, making it an ideal time to buy investment properties for sale in Dallas.
5. Influx of new construction and development projects
The city of Dallas is currently witnessing an exponential growth spurt, leading the nation in apartment construction from 2021 to 2023. This surge in development is more than just a testament to the city’s continuous expansion; it’s an unequivocal sign of investor confidence in Dallas’ promising future.
The Dallas-Fort Worth metro area clinched the silver medal for the highest new home construction rate in 2023. By the close of the second quarter of 2023, over 20,600 new home construction permits had been issued.
Investors can directly buy into new developments or ride off the back of this progress to benefit from rising property values in areas neighboring these projects.
Ready to take the next step towards achieving your financial dreams with real estate? Let GuardianWealth guide you. Schedule consultation to explore how our unique solutions can work for you. Don’t just dream about financial success – make it your reality.