Investing in Dallas/Fort Worth vs Atlanta

[James Park]

If was forced to invest out of state. Without having to think about it, I would probably concentrate my investing dollars in Dallas / Fort Worth.

1) Population is estimated to grow over a million from 2010 - 2020.
2) GDP is one of the highest
3) 0 state income tax and overall good public school system
4) One of the lowest unemployment in the country
5) One of the highest salary in the country and the low cost of living.
6) Dallas/Forth Worth Real Estate market was practically recession proof during the 2006 - 2012 downturn while Real Estate in the rest of country practically fell off a cliff.

These are all attractive features of why Dallas is a good place to invest.

For those investor who invest in either or both Atlanta and Dallas markets. Let's discuss some similarities and differences of the two markets. Pros and Cons.

Although I would like to believe where I live and invest (Atlanta) is the best market to invest. I believe that Texas has slight edge over Georgia in terms for the buy and hold investor. Sort of like a big brother, little brother relationship.

[Hattie Dizmond]

As you stated, DFW wasn't hit by the crash.  That doesn't mean we weren't impacted.  The lack of available credit for would be home buyers caused the normally stable appreciation to stagnate.  The same problem caused a receding of prices, not a correction, as sellers were forced to lower prices or become landlords, simply because there were fewer buyers able to qualify in the new world order.

As credit loosened and banks began originating again, prices began increasing much faster than the normal average of 3% - 6% appreciation.  It isn't runaway appreciation as much as it is the market catching up as buyers have suddenly reentered the market.  In some of the more desirable areas - not luxury areas - we're seeing close to 30% appreciation over 2013 with inventories less than 2-months.

The result of all this is that we find ourselves in an inverse rent:value market.  Market rents simply haven't caught up.  It's tough to find cash flow properties in B neighborhoods right now.  A neighborhoods are almost impossible. 

Demand will continue, so I believe rents will catch up.  It's just going to take a couple of years as leases turn over.