Finding a strong market to invest in starts with identifying the population, job growth, and economic impact of a given region. Below is a video presentation that outlines long term data in support of the Dallas, Texas real estate market. If you are interested in receiving further information or investment advice regarding this market, please contact us today and one of our professional investment counselors will follow up with you as soon as possible.
People who follow Jason Hartman’s Creating Wealth show know how much he likes markets with good affordability and attractive cash flows. When you add a favorable tax environment with an inviting business climate, you have an accurate description of Dallas. As a nexus point for businesses relocation and expansion, Dallas represents a very favorable opportunity for investors who are looking to get ahead of future growth trends.
Dallas, with an estimated population nearing 1.3 million, is the third largest city in Texas behind Houston and San Antonio, respectively. It is the main city and economic center of the 12-county Dallas–Fort Worth–Arlington metropolitan area.
Founded in 1841 and formally incorporated as a city in February, 1856, the city’s economy is primarily based on banking, commerce, telecommunications, computer technology, energy, and transportation. Located in North Texas and a major city in the American South & Southwest, Dallas is the core of the largest inland metropolitan area in the United States that lacks any navigable link to the sea.
Dallas, like many other cities in the world, was founded along a river. The city was founded at the location of a “white rock crossing” of the Trinity River, where it was easier for wagons to cross the river in the days before ferries or bridges. The Trinity River, though not usefully navigable, is the major waterway through the city.
The city of Dallas has many characteristics that make it a nexus for investment. These three vectors are demographics, quality of life, and the business climate. The demographics of Dallas support growth, because of the large in-migration of people seeking a more attractive business climate. The affordable housing, ample access to arts and entertainment, and plentiful shopping options create an attractive quality of life in Dallas. The business climate in Dallas is extremely attractive due to the favorable tax environment in Texas, the concentration of business in the metroplex area, and availability of transportation from both the freeway network and the airport.
The median income for a household in the city was $40,147, and the median income for a family was $42,670. The per capita income for the city was $25,904. About 18.7% of families and 21.7% of the population were below the poverty line, including 33.6% of those under age 18 and 13.4% of those aged 65 or over.
The Dallas / Fort Worth area has a cost of living that is 8.6 percent below the national average.
The Arts District in the northern section of Downtown is home to several arts venues, both existing and proposed. Notable venues in the district include the Dallas Museum of Art, the Morton H. Meyerson Symphony Center, The Trammell & Margaret Crow Collection of Asian Art, the Nasher Sculpture Center, The Dallas Contemporary, and The Dallas Children’s Theater.
Dallas is home to the Dallas Mavericks and Dallas Stars. Both teams play at the American Airlines Center, as did the Dallas Desperados of the Arena Football League before that league’s demise in 2009.
Nearby Arlington, Texas is the new home to the Dallas Cowboys of the National Football League. Since joining the league as an expansion team in 1960, the Cowboys have enjoyed substantial success, advancing to eight Super Bowls and winning five. Known widely as “America’s Team,” the Dallas Cowboys are financially the most valuable sports ‘franchise’ in the world, worth approximately 1.5 billion dollars. They are also the second most valuable sports organization in the world. The Cowboys are only out-valued by Manchester United, a soccer club from England, who are valued at 1.8 billion dollars.
The Dallas-Fort Worth Metroplex as a whole has one of the largest concentration of corporate headquarters in the United States. With an unemployment rate of only 4.7 percent, and over 128,000 businesses, Dallas represents a highly attractive business environment. It is also highly attractive for entrepreneurs, and has ample access to transportation with direct flights to most major US cities in four hours or less.
A recent study ranked the Dallas / Fort Worth area number two in job growth for the nation. This makes Dallas an extremely attractive nexus for investment, specifically for income properties since the strong job growth in the area will help to keep the rental market strong for a considerable length of time. This will create tremendous opportunities for investors.
The Dallas / Fort Worth area has a broad diversity of employment, ranging from transportation to technology and education. This base of employment fuels the rapid job growth that has come to epitomize Dallas / Fort Worth over recent years, and is expected to create job market stability into the foreseeable future.
Dallas / Fort Worth also plays host to many foreign-owned corporate subsidiaries, further adding to its attractiveness as a business nexus. This represents another key characteristic of the Metroplex that makes it a magnet for commerce. By attracting both domestic and foreign business, Dallas / Fort Worth has established itself as a key growth area for both the present and the future.
The city of Dallas has 12 Fortune 500 companies, the 3rd most in the United States while DFW as a whole has 22. New additions to the list include AT&T, which announced plans in June 2008 to relocate its corporate headquarters to Downtown Dallas from San Antonio, and Comerica Bank, which relocated in 2007 from Detroit. Irving is home to four Fortune 500 companies of its own, including ExxonMobil, the most profitable company in the world and the second largest by revenue, Kimberly-Clark, Fluor (engineering), and Commercial Metals. Slide 12: Inland Trucking Port
The Dallas area freeway system is set up in the popular hub-and-spoke system, shaped much like a wagon wheel. Starting from the center of the city, a small freeway loop surrounds Downtown, followed by the Interstate 635 loop about 10 miles outside Downtown, and ultimately the tolled President George Bush Turnpike. Inside these freeway loops are other boulevard- and parkway-style loops, including Loop 12 and Belt Line Road. This has helped to make Dallas the equivalent of an inland port for trucking and transportation.
The migration to Dallas / Fort Worth is not limited to employees, start-up enterprises and small businesses. There are multiple fortune 500 companies that are moving to the Dallas area because of its low taxes and favorable business environment relative to more expensive business environments such as California.
Dallas represents a highly attractive real estate market, with home prices that are 23 percent below the national average. In addition to this, Dallas has a large amount of existing office and industrial space to absorb continued expansion. While most markets are contracting in value, the Dallas market is actually going up. In addition to this, apartment occupancy rates are over 90 percent. These factors lead to excellent cash flow, attractive return on investment, and the potential for long-term value appreciation.
The real estate market in Dallas exhibits many attractive characteristics, with good housing supply at all price ranges, a very reasonable average home price, excellent price stability, attractive occupancy for rental units, and tremendous prospects for long-term appreciation.
The Dallas / Fort Worth area is going through a business and building boom that has become the envy of the nation. The net migration of people and businesses toward Dallas is a trend that is likely to continue into the foreseeable future as people move out of high tax environments such as California and relocate to more attractive business climates.
If you are interested in the investment opportunities available with the Dallas Market, contact your investment counselor for a one-on-one consultation. In addition to the investment properties, ask your counselor about our coaching programs where they will work alongside you to develop a holistic strategy that merges attractive investments, solid financial planning, exceptional education, and a strong focus on personal values to help achieve your goals now and into the future. We are ready to help you realize the success that you have ever dreamed of. Are you ready to take the next step?