The Urban Land Institute (ULI), a nonprofit research and education organization, recently published its Emerging Trends in Real Estate®. The report comes out each year and offers an in-depth view of commercial and residential real estate trends. In its latest report, ULI ranked Dallas the #1 real estate market to watch in 2016.
Dallas Real Estate Market Outlook ‘Very Strong’ for 2016
The ULI report provided an in-depth look at current real estate market conditions across the country, and in many metro areas as well. It also shared the outlooks and forecasts of leading real estate industry executives, based on surveys and interviews. It gives a good sense of where the market is today, and where it might be headed in 2016.
According to the report, Dallas is the #1 real estate market to watch in 2016. To quote the report:
“Survey respondents were positive regarding all property types in the Dallas/Fort Worth market and in both the investment and development potential … The outlook for the single-family market remains very strong…”
Another Texas city, Austin, ranked #2 in ULI’s top U.S. real estate markets to watch in 2016. Read more about the top 10 cities featured in Emerging Trends.
Strong Job Market Increasing Demand for Housing
The job market has a lot to do with the overwhelmingly positive forecast for the Dallas real estate market. As ULI noted, there has been impressive job gains in the area over the last couple of years. Several survey respondents and interviewees mentioned employment growth as a major contributing factor in the metro area’s economy.
According to the U.S. Bureau of Labor Statistics, the unemployment rate in the Dallas-Forth Worth-Arlington metropolitan area fell to 3.9% in August (projected). That’s down from a recession high of 8.7% in 2009, and more than a full percentage lower than the current national unemployment rate.
Like other metro areas in Texas, Dallas has long been known for having a strong job market and stable economy. This supports the local real estate market in two ways. It brings more people into the area (particularly younger, upwardly mobile residents), and it puts more of them in a position to buy a home. This in turn increases housing demand and lifts home prices.
The Dallas / Forth Worth area also has a reputation for being business-friendly, both in terms of the cost of doing business and the cost of living for employees. Last year, Forbes ranked Texas the best state for future job growth. CNBC ranked it the second best state for doing business.
The bottom line is that a strong job market influenced the survey group’s positive outlook for the Dallas real estate market in 2016.
Zillow Forecast: Additional Home Price Gains in 2016
In October, the real estate information company Zillow offered a favorable prediction for the Dallas real estate market in 2016. By their estimation, home prices in the metro area rose by nearly 14% over the previous 12 months (as of their October 2015 report).
Looking forward, they anticipate that prices will rise another 6% over the next 12 months, through October 2016. So while the market might cool a bit next year, economists are still predicting strong gains where home values are concerned.
Disclaimers: This story contains forward-looking statements (predictions, forecasts and outlooks) regarding the Dallas real estate market in 2016. These statements were provided by third parties not associated with this website. The Home Buying Institute makes no claims or assertions about the housing market or the broader economy. Economic predictions should not be viewed as facts, but as an educated guess.