DFW Ranked Most Attractive Real Estate Market

According to a new survey, Dallas-Fort Worth is considered the most attractive market in the United States for real estate investment.

The 2024 U.S. Investor Intentions Survey, conducted by Dallas-based public real estate firm CBRE, ranked the metroplex as number one on the list of the “Top 10 most attractive markets for investment.” Miami-South Florida was ranked second, and Raliegh-Durham was third.

Notably, DFW also took the top spot in the “Top 10 markets for total property returns,” followed by the runner-up, Miami-South Florida, and Boston in third.

DFW’s impressive showing in the survey is hardly surprising, given the metroplex kicked off the year with the second-strongest increase in home sales in the country. DFW even saw a larger year-over-year increase in home sales than popular markets like Las Vegas, Des Moines, Iowa, and Bozeman, Montana.

The survey drew responses from a diverse group of 134 participants. The largest share, 43%, comprised developers, owners, and operators. Real estate funds were the second largest group, at 20%, followed closely by private equity funds, at 19%.

Persistent, elevated interest rates are the biggest concern for real estate investors, with nearly nine out of 10 respondents listing it as an issue. Last month, the Federal Open Market Committee moved to keep interest rates unchanged, the fifth straight month at 5.25% to 5.50%. The Fed is looking for signs that prices are sufficiently cooling, but late last month, Fed Chair Jerome Powell stated that “inflation pressure continues to run high.”

As recently reported by The Dallas Express, the latest economic data showed that price acceleration picked up further. March results showed a fourth consecutive month of higher-than-expected inflation.

Stricter credit availability and loan terms were listed as the second biggest concern among the survey respondents, followed by “Differing buyer and seller expectations.”