Dallas Real Estate Market Analysis

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Dallas is a major metropolitan city in North Texas with a population of over 1.3 million people. This makes Dallas the third most populous city in the State of Texas after Houston and San Antonio and the ninth largest one in the US. With a population of 7.4 million people, the Dallas-Fort Worth metroplex is not only the fourth largest metropolitan area in the US but also the most populous one in Texas and the entire South. This huge population in addition to the fact that 59% of residents rent rather than own a home makes the Dallas real estate market one of the top locations for property investments, especially traditional rentals.

Dallas is a busy regional commercial, transportation, and cultural hub enjoying a diverse economy in which high-tech sectors have taken the lead. The main industries include defense, financial services, information technology, communications, transportation, and manufacturing as well as healthcare, retail, accommodation, construction, and real estate. This makes for a mixed workforce of both white-collar and blue-collar jobs. Dallas hosts the headquarters of nine Fortune 500 companies, while their total number in the DFW region is 22. The multiple economic sectors and the strong economic growth send a positive signal to Dallas real estate investors.

Dallas is a popular tourist destination with 25 million visitors each year. Some of the most important tourist attractions in Dallas include the Dallas Arboretum and Botanical Garden, the Dallas World Aquarium, the Dallas Zoo, Fair Park, Reunion Tower, Six Flags, the Sixth Floor Museum at Dealey Plaza, the Perot Museum of Nature and Science, the Dallas Museum of Art, and the Dallas Arts District including the Nasher Sculpture Center and the Meyerson Symphony Center. The Dallas Arts District is the largest continuous urban arts district in the US. The large number of annual visitors translates into high demand for Airbnb Dallas rentals from the point of view of real estate investors.

The Dallas-Fort Worth real estate market attracted the attention of property investors this year after PWC ranked it as the #1 US Market to Watch in its annual Emerging Trends in Real Estate: United States and Canada 2019 report. The benefits of investing in the Dallas-Fort Worth housing market combine a strong potential for future growth with the liquidity of a gateway market.

Dallas  Real Estate Investment Performance

Facts and Market Trends in Dallas
Homes For Sale3,310
Airbnb Properties2,849
Rental Properties6,758
Traditional Vacancy rate7.70%
Airbnb Occupancy Rate57.57%
Mashmeter39.19%
Median Price$455,000
Median Rent Price$2,818
Price/sqft$288
Median Days on Market23
Price to Rent Ratio25.2
Average Cap Rate
Airbnb4.55%
Traditional3.58%
Average Rental Income
Airbnb$3,422
Traditional$2,206
 
Median Household Income$54,747
Population1,288,000
Transportation in Dallas
46 / 100
Car-Dependent
39 / 100
Some Transit
49 / 100
Somewhat Bikeable
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Dallas  Rent Prices

RENTAL STRATEGY STUDIOS 1 BEDROOM 2 BEDROOMS 3 BEDROOMS 4 BEDROOMS
Airbnb$1,699$1,857$2,525$3,518$4,771
Traditional$1,780$1,351$2,114$2,978$3,093

Dallas, TX - Homes for Sale - Newly Listed

13625 Spring Grove Avenue
Dallas, TX 75240
Lake Highlands
Single Family Residential
4 beds3 baths2,081 sq.ft.
CAP RATE
Trad. 3.70%Airbnb 4.30%
5911 E University Boulevard #108
Dallas, TX 75206
M Streets
Condo/Coop
2 beds2 baths1,078 sq.ft.
CAP RATE
Trad. 5.79%Airbnb 3.03%
7622 Ryanridge Dr
Dallas, TX 75232
Wolf Creek
Single Family Residential
4 beds2 baths1,338 sq.ft.
CAP RATE
Trad. 4.43%Airbnb 5.08%
2825 W 12th St
Dallas, TX 75211
Dells District
Single Family Residential
2 beds1 baths1,024 sq.ft.
CAP RATE
Trad. 2.54%Airbnb 1.53%

Top Performing Dallas Properties

3047 Utah Avenue
Dallas, TX 75216
Five Mile Creek
Single Family Residential
3 beds1 baths1,680 sq.ft.
CAP RATE
Trad. 5.68%Airbnb 7.97%
503 Dogwood Trail
Dallas, TX 75224
Five Mile Creek
Single Family Residential
3 beds2 baths1,070 sq.ft.
CAP RATE
Trad. 6.03%Airbnb 7.96%
609 Westmount Avenue
Dallas, TX 75211
Dells District
Single Family Residential
3 beds1 baths1,170 sq.ft.
CAP RATE
Trad. 7.26%Airbnb 7.96%
3045 Park Lane #1028
Dallas, TX 75220
Preston Hollow
Condo/Coop
2 beds2 baths969 sq.ft.
CAP RATE
Trad. 3.10%Airbnb 7.94%

Recently Sold Homes in Dallas, TX

5366 Bowser Ave
Dallas, TX 75209
Oak Lawn
Townhouse
3 beds4 baths2,075 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
6701 Hursey St
Dallas, TX 75205
M Streets
Townhouse
3 beds3 baths2,212 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
9533 Springwater Dr
Dallas, TX 75228
Northeast Dallas
Single Family Residential
3 beds2 baths2,388 sq.ft.
CAP RATE
Trad. 0.61%Airbnb 1.19%
10040 Brierwood Ln
Dallas, TX 75217
Southeast Dallas
Other
beds baths0 sq.ft.
CAP RATE
Trad. 1.22%Airbnb 2.68%

Property Value Changes and Real Estate Appreciation in the Dallas Housing Market

The Dallas real estate market has witnessed strong natural real estate appreciation in recent years. Dallas home values have gone up by 111% since the beginning of 2000, which brings the average annual appreciation rate to 4.1%, according to data from NeighborhoodScout. Meanwhile, based on Zillow estimates, the median listing price in the Dallas housing market went up by 16.9% in the past year. Despite this high real estate appreciation, Dallas investment properties have remained affordable, which makes Big D a good choice for first-time real estate investors.

Moreover, Zillow forecasts a decline of 9.2% in median home values in the next year. The Dallas housing market is moving towards a neutral market, meaning that rental property investors will be able to find affordable investment options as well as good real estate deals and not get caught in bidding wars.

Dallas, TX Top Multi Family Homes

15221 Berry Trl #608
Dallas, TX 75248
Far North
Multi Family
1 beds1 baths14,000 sq.ft.
CAP RATE
Trad. 2.15%Airbnb 3.03%
4724 Hamilton Avenue #4724 & 4726
Dallas, TX 75223
Urbandale-Parkdale
Multi Family
4 beds2 baths1,260 sq.ft.
CAP RATE
Trad. 5.53%Airbnb N/A
620 Mount Auburn Avenue #620 & 622
Dallas, TX 75223
M Streets
Multi Family
2 beds2 baths0 sq.ft.
CAP RATE
Trad. 4.91%Airbnb N/A
421/423 Wayne Street
Dallas, TX 75223
M Streets
Multi Family
6 beds6 baths0 sq.ft.
CAP RATE
Trad. 4.63%Airbnb N/A

Homes Below Median Price in the Dallas, TX Real Estate Market

3047 Utah Avenue
Dallas, TX 75216
Five Mile Creek
Single Family Residential
3 beds1 baths1,680 sq.ft.
CAP RATE
Trad. 5.68%Airbnb 7.97%
503 Dogwood Trail
Dallas, TX 75224
Five Mile Creek
Single Family Residential
3 beds2 baths1,070 sq.ft.
CAP RATE
Trad. 6.03%Airbnb 7.96%
609 Westmount Avenue
Dallas, TX 75211
Dells District
Single Family Residential
3 beds1 baths1,170 sq.ft.
CAP RATE
Trad. 7.26%Airbnb 7.96%
3045 Park Lane #1028
Dallas, TX 75220
Preston Hollow
Condo/Coop
2 beds2 baths969 sq.ft.
CAP RATE
Trad. 3.10%Airbnb 7.94%

Dallas Airbnb Growth and Regulations

Considering the importance of tourism in Dallas, it comes as no surprise that the Dallas Airbnb business has experienced a major growth in recent years. In 2018 nearly half a million Airbnb guests stayed at Dallas-Fort Worth short-term rentals, bringing a total revenue of $64 million to the local Airbnb hosts. This averages a supplement rental income of $6,800 per Airbnb Dallas host.

Despite increasing Airbnb legal issues in other major real estate markets across the US, Airbnb rentals remain fully legal in the Dallas housing market. To this point the city has not issued any Airbnb laws to regulate the use of short-term rentals. In terms of taxes and fees, Dallas Airbnb hosts are expected to pay a city hotel occupancy tax of 7% in addition to a 6% state hotel tax.

Dallas, TX Top Airbnb Homes

Entire home/apt · 1 bed
Charming Cabin Near Deep Ellum & Fair Park
1093

Dallas, TX Homes for Rent

4714 Frank
Dallas, TX 75210
Urbandale-Parkdale
Single Family
3 beds2 baths1,800 sq.ft.
2615 W Brooklyn Avenue
Dallas, TX 75211
Dells District
Single Family
3 beds2 baths1,554 sq.ft.
2515 San Paula Avenue
Dallas, TX 75228
Northeast Dallas
Single Family
3 beds1 baths1,096 sq.ft.

Dallas, TX Open Houses

7151 Gaston Avenue #101
Dallas, TX 75214
M Streets
Condo/Coop
1 beds1 baths738 sq.ft.
CAP RATE
Trad. 0.30%Airbnb 0.90%
6605 Northwood Road
Dallas, TX 75225
North Dallas
Single Family Residential
5 beds6 baths5,832 sq.ft.
CAP RATE
Trad. -1.44%Airbnb -0.74%
18240 Midway Road #702
Dallas, TX 75287
Far North
Condo/Coop
1 beds2 baths866 sq.ft.
CAP RATE
Trad. -0.01%Airbnb 0.97%
4527 Lindsley
Dallas, TX 75223
Farmers Market District
Single Family Residential
3 beds3 baths1,658 sq.ft.
CAP RATE
Trad. 6.24%Airbnb 5.84%

Best Dallas Neighborhoods for Buying Investment Property

Southeast Dallas
Dallas, TX
64%
Mashmeter
property price
269450
Median
cap rate
5.95%
Traditional
9.52%
Airbnb
rental income
$1,335
Traditional
$2,138
Airbnb
homes for sale
1
occupancy rate
48%
Airbnb
Cedar Crest
Dallas, TX
63%
Mashmeter
property price
246000
Median
cap rate
6.52%
Traditional
12.17%
Airbnb
rental income
$1,336
Traditional
$2,495
Airbnb
homes for sale
1
occupancy rate
53%
Airbnb
Wolf Creek
Dallas, TX
60%
Mashmeter
property price
272255
Median
cap rate
7.41%
Traditional
9.55%
Airbnb
rental income
$1,680
Traditional
$2,168
Airbnb
homes for sale
1
occupancy rate
49%
Airbnb
South Boulevard-Park Row Historic
Dallas, TX
60%
Mashmeter
property price
250000
Median
cap rate
6.28%
Traditional
10.97%
Airbnb
rental income
$1,309
Traditional
$2,286
Airbnb
homes for sale
1
occupancy rate
54%
Airbnb
South Dallas
Dallas, TX
60%
Mashmeter
property price
254950
Median
cap rate
6.58%
Traditional
14.53%
Airbnb
rental income
$1,398
Traditional
$3,088
Airbnb
homes for sale
1
occupancy rate
51%
Airbnb
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