Reasons investors are drawn to the Dallas-Fort Worth Metro Area
June 1, 2023
Texas has been sought-after as a market for real estate investing over the past decade, with experts citing population growth, in-migration, and jobs growth as attractive factors to potential investors.1
While there have been many macroeconomic changes of late, on both a national and global scale, investor demand remains strong for the Lone Star State. There are several attractive markets in Texas, including the Dallas-Fort Worth Metro Area, which is particularly compelling for a number of reasons.
The DFW metro area is one of the fastest growing economies in the US
Texas is a no-income tax state which is currently home to 53 Fortune 500 companies, 23 of which are in the DFW Metro Area.2 The region had the No. 5 fastest-growing economy of any U.S. metro this year, as per the American Growth Project.3
While recognized as a hub for tech and innovation, the region has diversity and strength across multiple industries, with health care noted as a major driver of economic growth.3 Some of the Fortune 500 companies include ExxonMobil, McKesson, and AT&T, which gives an indication of the scope of industry in the region.
The DFW metro area saw GDP growth of 3.1% in 20222 and has seen 5.1% YoY job growth as of Q1 2023.4
Home Prices in the DFW metro area are on the rise
Prices in the Dallas-Fort Worth housing market are among the fastest growing in the country, squeezing out buyers with lower or even average incomes.
The value of a typical home in the Dallas-Fort Worth metro area stands at just over $362,000, up 38% since 2020, according to Zillow. Home prices in the desirable metro region are up 2.7% YoY,5 leaving potential homebuyers seeking more affordable alternative accommodation such as rentals.
The DFW metro area is a sought-after location for renters
The DFW region is also a top area for in-migration, according to a 2022 report, which outlines that 7 cities in the region had growth, with more people moving in than moving out.6 The population of the metro area has reached 7M+ and the median age is younger than the national average, at 35.7
A recent report showed that both rent prices and occupancy rates are up YoY, with DFW leading the state at a 92% occupancy rate,8 underlining just how sought after the region is amongst renters.
The DFW region of Texas shows no signs of slowing down, and the indicators suggest that both renters and investors will continue to be attracted to the area.
Iintoo’s track record in Texas includes 15 exits and 3 active deals, and we continue to seek out investment opportunities in these markets, leveraging our dedicated team of real estate experts and integrating market data as part of our vetting process.
If you are interested in investing in Texas, you can join our waitlist to be the first to know about our upcoming deals in this market.
(1) Forbes: Investing In Texas Real Estate? Here Are A Few Things You Should Know
(2) WFAA: The 53 Fortune 500 Texas companies Caterpillar will join
(3) Dallas Innovates/American Growth Project: Report: Dallas-Fort Worth Has One of the Top 5 Fastest-Growing Economies in the U.S.
(4) US Bureau of Labor Statistics
(5) Zillow: Home Prices, Dallas Fort-Worth
(6) The Real Deal / Move Buddha: Lone Star Migration 2022-2023
(7) Best Places: Texas – Dallas-Fort Worth-Arlington
(8) The Business Journals: DFW apartment rents and occupancy climb year-over-year; high-income renters rise