Photo courtesy Wikimedia Commons

More and more people are choosing to rent, economists are finding, but Apartment List found in a recent study that one particular — and somewhat surprising — segment of the rental market is booming: high-income renters.

The report deems those with six-figure incomes as high-income renters, and a growing number in this income bracket are choosing to rent their homes instead of buying. On a national basis, almost two million (or 48 percent of) high-income households became renters between 2007 and 2017.

“In Dallas specifically, high-income renters grew 91 percent from 2008-2017,” said Apartment List research associate Rob Warnock.

Why? At least in Dallas, it may be the sheer volume of luxury apartments available. (more…)

renting in dallas

A new report from Apartment List analyzes the top trends in the 2017 rental market and predicts their impacts in 2018. For example, the report highlights the increase in the homeownership rate after a decade of declines, as well as the decrease in the share of rental units considered affordable to the lowest-income renters. Although affordability remains a concern for those renting in Dallas, Dallas rent growth slowed as the metro added more new rental stock than any other U.S. metro. Dallas rents remain slightly lower than the national average, at $1,100 for a two-bedroom apartment, compared to $1,160 nationwide.

The Dallas market added an estimated 22,851 new rental units in 2017, more than Miami, Phoenix, Boston, and San Francisco combined, and nearly 50 percent more than the number of new units added in 2016. While rental units in Dallas remain in high demand, with 2.4 percent year-over-year rent growth, the large increase in supply decreased occupancy rates from 92.3 percent to 91 percent.

(more…)

Two new reports paint a bright picture of the housing market in Midland and Odessa now and for the next three years.

The Local Monitor Reports, released today, cite a 7 percent increase in Midland home prices over the last 12 months, which puts the average home price at $183,463. In Odessa, prices have gone up 5 percent over the last year and the current average home price is $210,980. In the last three years, home prices were up 10 percent in both markets.

The good news doesn’t stop there.

Read the whole story over on MidlandDirt.com!

 

 

home prices

Photo: Dan Moyle

Two new reports from Local Monitor Report are projecting big increases in home values in Midland and Odessa over the next three years, almost double the national average. Prices are predicted to rise even more.

Home values for Midland are forecast to increase by 8 percent over the next 12 months—compare that to national forecast of 4.6 percent. In the second and third years, values are forecast to increase 9 percent each year, a 26 percent increase in three years.

Midland home prices are projected to increase even more, at 30 percent over the next three years. In the last 12 months, prices have gone up by 7 percent, bringing the average home price in Midland to $183,463.

In Odessa, the report is predicting a 7 percent increase in home values over the next 12 months, and 9 percent in each of the next two years. That’s a total projected increase of at least 25 percent.

Odessa home prices are forecast to increase more, at 29 percent over the next three years. Odessa home prices have increased by 5 percent in the last 12 months, and the average home price is now $210,980.

All this adds up to a “low risk” categorization by Local Monitor Report for real estate investments in both Midland and Odessa, good news for homeowners and investors, alike.

See the full story at MidlandDirt.com.

What’s a better indicator of a healthy rental market than higher prices for in-demand properties?

In the Dallas-Plano-Irving area, rents are on their way up to the tune of 19 percent over 3 years, according to the folks at Local Market Monitor. The real estate market analysis shows a period of slow growth during 2010, with 2011 and 2012 being largely flat. And then bam — the report says rents will skyrocket. It’ll be harder to find a good apartment, too, as vacancies are projected to get awfully low.

That’s a stark difference from what the report projects for residential sales. While growth is on the horizon, prices won’t increase at nearly the rate that rents are projected to rise.

My interpretation (full disclaimer: I am no expert!) is that it’s a good time to buy if you’re a first-time homebuyer and eligible for a tax credit. You can find a place of your own to build some equity and get out of your rental before prices get too steep!

What do you think?