Dallas rents grew 2.2 percent in 2017, bringing the median two-bedroom rent to $1,100. It’s not just in Dallas proper where rents are on the rise – rents increased in 2017 in all the major Dallas metro cities including Fort Worth (4.3 percent), Arlington (6.6 percent), Plano (2.9 percent), Garland (2.7 percent), and Irving (3.8 percent). There is some relief for Dallas renters — rents in Dallas proper have declined 0.3 percent over the past month, and are down 1.2 percent since their 2017 peak in August.
The Dallas rent declines are part a seasonal trend, with rents falling in 62 of the top 100 U.S. cities during the month of December. Dallas’ rent decreases have been more pronounced than the nationwide trend, due in large part to increases in multifamily stock. The Dallas metro added more new rental stock than any U.S. metro, with 22,851 deliveries in 2017, up from 15,459 in 2016. The new rental stock decreased occupancy rates by 1.8 percent and softened rent growth, helping keep Dallas rent growth below the national and state averages of 2.5 percent and 2.8 percent, respectively.
Rents have been on the rise in Dallas, with the median one-bedroom apartment in Dallas proper renting for $890 a month. Throughout the Dallas area, some suburbs still offer lower prices compared to Dallas, while others are considerably more expensive.
To give renters an idea of how far their rent check will go, we’re highlighting properties at the Dallas median price in Dallas proper, as well as in 10 surrounding cities. From one-bedrooms in Frisco and Carrollton to two-bedrooms in Fort Worth and Garland, there are plenty of great rentals in the Dallas-Fort Worth metro for around $890 a month.
If the idea of having someone else help pay your mortgage is appealing, then consider the up-down duplex in North Oak Cliff at 1216 Kings Hwy.
Listed for $375,000 by Kathy Hewitt and Steve Habgood with the Hewitt Habgood Group of Dave Perry-Miller Intown, this duplex has two 2-1 units. Both are currently rented out to solid, long-term tenants on month-to-month leases, but they are priced under market value. Habgood said the market rate for these units could bring in as much as $3,000 per month. For a property listed under $400K, that would likely cover the entire note, and then some!
The current owner has purchased the property 16 years ago, and lived in the upstairs unit for nine years, Habgood said. The Craftsman home was built in 1923, and he has done a lot of restoration work. He replaced the concrete footers and headers in front, put in new brick support beams, insulated all the exterior walls and attic, added a two-car detached garage, and added new electrical and HVAC to both units. He also sanded and repainted the exterior with Tex-Cote paint, a thicker paint with special reflective pigments that can lower surface temperatures significantly, meaning lower heating and cooling bills.
Let’s take a look inside this Craftsman duplex and check out its potential as an income property.