Dallas-Fort Worth’s single-family rental market even hotter than home sales market
From the Dallas Business Journal:
May 14, 2021, 8:13am CDTDALLAS BUSINESS JOURNAL STAFF
With a shortage of available homes on the market, it is extremely difficult for prospective buyers to find a home. It’s even harder for people who want to rent a house, new research shows.
If you think the Dallas-Fort Worth single-family home sales market is sizzling this spring, try the single-family rental market.
The rental house market is even hotter than the home sales market, judging by research from the Amy Wang Team at Plano-based real estate firm LetShine Realty and data scientist Chris Sun.
Wang’s team and Sun use North Texas Real Estate Information Services stats to compare the months of supply of homes on the market that are for sale and the months supply of homes that are for lease in 30 cities across DFW.
The interactive dashboard also tracks the inventory of for-sale and for-lease homes in the 30 North Texas cities.
The months of supply is at all-time lows across DFW for both homes for rent and for sale.
The conclusion: While the for-sale market is tight, the for-rent market is tighter in almost every city and in DFW as a whole.
That means that home renters have to be prepared to pull the trigger on a good home deal even faster than home buyers in this Wild West residential real estate market.
In Dallas, for example, there was a 1.71 month supply of for-sale single-family homes on the market at the end of March, according to the most recent figures available. There was a 1.23-month supply of single-family homes for-rent in “Big D.”
That works out to 1,181 homes for sale in the entirety of the region’s largest city, and only 196 homes for rent.
It’s tighter, still, in Frisco, with a 1.28-month supply of for-sale homes and a 0.56-month supply of rental homes. That works out to 272 for-sale homes and 40 for rent in what is perennially the fastest or one of the fastest-growing cities in the U.S.
Turning to Plano, it gets slightly worse for prospective buyers and renters alike, with a 1.15-month supply of homes for sale and a 0.53-month supply of rental product. In raw numbers, that’s 228 homes for sale and 53 homes for rent in all of Plano as of March 31.
Buyers who want the exclusivity of a University Park address but don’t want a mortgage should be prepared to compete for one of just four single-family rentals on the market. Prospective buyers have a “whopping” 40 homes from which to choose. That amounts to a 1.33-month supply of for-sale homes and a 0.8-month supply for rent in University Park.
Slide over to Highland Park, and you’ll find 30 homes available to buy as of March 31, but only one single-family home available to rent. And you can bet your last buck that it’s gone by now.
The other North Texas cities for which dashboard stats are available are Addison, Allen, Anna, Carrollton, Celina, Fairview, Farmers Branch, Garland, Lavon, Little Elm, Lucas, McKinney, Melissa, Murphy, Nevada, New Hope, Oak Point, Parker, Princeton, Prosper, Richardson, Rowlett, Sachse, The Colony and Wylie.