When they say everything’s bigger in Texas, they really aren’t kidding. Just to give you a real glimpse into the size of the Dallas-Fort Worth metroplex, let us give you some quick comparisons. The metroplex itself encompasses 9,286 square miles, making it larger than both Rhode Island and Connecticut combined. It includes 13 Texas counties and boasts a population of roughly 7.4 million as of the 2017 census estimate.
It is the fourth largest metropolitan area in the United States and the fastest growing metropolitan area in the country. Only New York, Los Angeles, and Chicago are larger in size than DFW, but the explosive growth the Metroplex is experiencing and has been experiencing for some time is unprecedented since Los Angeles’ explosive growth in the 1980’s.
As real estate investors with a vested interest in the economic health and opportunities presented in the DFW area, it’s valuable to not only watch this explosive growth carefully, but to try to understand why it’s happening, where it’s headed, and formulate our response to that growth.
2 Reasons the DFW Metroplex is Booming in Every Way
Job opportunity drives population growth.
A Dallas Business Journals article earlier this year helps shed light on the explosive population growth in the DFW Metroplex: job generation. The vast majority of the population growth in this region comes from migration, not from births. What’s driving people to move to the area is fairly clear-cut: job opportunity. Data from the Bureau of Labor and Statistics demonstrates that among the other largest metropolitan areas in the United States, between November 2016 and November 2017, the DFW Metroplex boasted the highest job growth rate and most jobs added.
100,400 jobs, to be exact.
The main areas of growth were in manufacturing, professional services, hospitality, education and trade, utilities industries, and transportation. This variety of job opportunities also points to a valuable factor for investors to consider as we look ahead to the long-term stability of the DFW market: economic diversity.
In fact, no industry makes up more than 20% of the job sector. This is enormously important moving forward, as long-term economic stability and opportunity will depend on overall market diversity.
Businesses are relocating to Dallas and Ft. Worth and the surrounding Metroplex to take advantage of the desirable business climate, leading to its over 10,000 business headquarters and leading numbers for professional and personal relocation.
While jobs are certainly the number one driving factor behind the migration to the DFW Metroplex, it’s certainly not the only factor.
The living conditions keep people coming back for more.
Job opportunities and favorable business conditions only go so far. With the cost of living and housing affordability on the rise in the DFW Metroplex, what keeps the migration to the area so strong? Part of it just comes from the high quality of life that the area affords in comparison to other metropolitan experiences. Prices are on the rise, but they’re not comparable to a New York or a Los Angeles.
What keeps people coming to Dallas, Ft. Worth, and nearby Texas counties is that the taxes aren’t so high, real estate is surprisingly reasonable, regulations aren’t that tough, and traffic isn’t going to ruin your work week. Simply put, you won’t find a better quality of life in a comparable metropolitan area, and for young millennials seeking out that lifestyle, it’s no wonder DFW is exploding in population.
So How Should Real Estate Investors Respond to DFW’s Explosive Growth?
When facing a market like DFW, one filled with this level of excitement, it’s easy to want to jump in headlong into everything you can get your hands on. Don’t make this mistake. While it may seem like an ironclad market, we would warn against being too cavalier about any sort of investment.
Instead, always do your due diligence and know exactly what you’re getting into and with whom.
Also, understand that in a market like Dallas-Ft. Worth, despite its size, which a population growing as quickly as it does, you may find it difficult to invest effectively on your own. Bidding wars are common as demand is high and inventory is low.
Your best bet is to partner with a turnkey company like Memphis Invest who not only has a toehold in the market and a finger on the pulse, but access to investment opportunities that someone investing on their own may have trouble landing.
Don’t miss out on the incredible investment opportunities waiting for you in Dallas-Ft. Worth. Set up your one-on-one call today!