North Texas Rental Market is HOT HOT HOT

North Texas Rental Market is HOT HOT HOT

Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes

Damn I wish it would slow down. :)

I have 1 year leases and cannot play catchup on the rent increases fast enough!

The biggest shocker was my section 8 rental in a blue collar neighborhood. I have been getting $1,095 for years and prices never went anywhere. Now comps show I could get $1,295 at the upper end of the range so I applied for a rent increase to $1,295.

They said yes and came back with a range of between $1,334 and $1,556! I knew section 8 paid a premium but not that much? I left $250 sitting on the table! All up I could have raised the rent $450 or 40% ...

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New York City, NY · Member since 2012 · 253 posts · 7 votes
13y

Wow that's incredible and 30% above my local region. I wonder if there is data about where new residents are coming from. Do you have that data?

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  • New York City, NY · Member since 2012 · 253 posts · 7 votes
    13y

    Hey Robert Steele that is some great news that the market is on fire. Is there a defined reason why your local market has seen such increases recently?

  • Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes
    13y

    Marc Bodinger - population growth and jobs, jobs, jobs. Half of my vacancies over the past 2 years have been filled by tenants moving here from out of state.

    As Jon Klaus pointed out, Dallas/Forth Worth is number one in the nation for population growth.

    http://bizbeatblog.dallasnews.com/archives/2012/04/d-fw-first-in-population-growt.html

    154,774 new residents through mid last year over the prior 12 months.

  • New York City, NY · Member since 2012 · 253 posts · 7 votes
    13y

    Wow that's incredible and 30% above my local region. I wonder if there is data about where new residents are coming from. Do you have that data?

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    Robert, what percentage increase have you seen in your rents over the past year?

  • Real Estate Investor · Dallas, TX · Member since 2010 · 449 posts · 173 votes
    13y

    Hey Robert,
    What area is the section 8 rental you mentioned getting a huge increase for in? One of our tenants in our duplex in Desoto is section 8 (Desoto is served by Grand Prairie for section 8). What you said has got me wondering if it's time to go for a bump...
    Thanks.
    -Harry

  • Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes
    13y

    Jon Klaus - I would guess around a 10% to 15% increase.

    Harry M. - East Plano.

    I just closed on a nice 1800sq. ft. 4 bedroom SFH circa 2007 in McKinney yesterday. My asking rent is 15% above what the lender's appraisal was. I already have one application from a sign that went in the yard this morning!

    That is pretty fast for any time of the year let alone Winter. As far as I can tell North Texas is still HOT HOT HOT. :)

  • Wholesaler · Lancaster, TX · Member since 2013 · 16 posts · 2 votes
    13y

    Robert Steele, great post. I am new to real estate investing in the Dallas area. When I was developing my business plan, I saw that our area was about the national average in population growth. It is good to hear that that growth is matched with an increase in the real estate market! It is also good to see that Texas can be known for being hot for something other than the weather!

  • Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes
    13y
    Originally posted by LaKesha Raynor:
    It is also good to see that Texas can be known for being hot for something other than the weather!

    Hahaha. Love it.

  • Wholesaler · Lancaster, TX · Member since 2013 · 16 posts · 2 votes
    13y

    I meant to say North Texas is "above" the national average...but you catch my drift... :)

  • Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes
    13y

    2013 is expected to be even hotter. The 5.6% appreciation we saw over 2012 was the largest increase since 1999.

    Here are the Dallas stats:

    A few of the highlights from the NTREIS numbers for December 2012 vs. December 2011 include:

    - The average list price rose 4.7% to $226,801. That’s in addition to an 8.2% increase in 2011.

    - Days on Market were down 20.9% to 85 days on average.

    - Percent of original list price received was up 1.7% to 93.1% of asking price.

    - Months’ supply of inventory was down 34.3% to 3.9 months.

    - The number of homes for sale was down 23.5% to 26,890.

    - New listings were down 2.7% from December 2011, to 5,765 homes.

    - Finally, pending sales were up 8.1% to 4,652 homes.

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    Thanks Robert. All points toward the strongest sellers' market in a long time.

  • Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
    13y

    Robert, 85 days on the market is nice. I'm used to 1-7 days on the market! I might have a chance in the north Texas area. I used to live in Plano--I'll check it out.

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    13y

    We're about to raise rents on our Fort Worth rental. Our PM thinks around 10 - 15% is about right.

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    Don't want to go too far off topic, but isn't <7 DOM a function of underpricing?

  • Real Estate Investor · Austin, TX · Member since 2011 · 271 posts · 106 votes
    13y

    Denton Housing Authority said no rental increases at one point. I'm sure to ask for a bump with our Lewisville Section 8 come renewal. Thanks for the info.!! Rental bump with nice equity = Happy Camper!

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