If you haven’t been keeping tabs on the Fort Worth real estate market, it’s time you start. Dallas-Fort Worth has been named the top real estate market to watch in 2019 by the Emerging Trends in Real Estate for 2019 report. With the Dallas-Fort Worth metro being not only the strongest opportunity in the Texas housing market but beating out 78 other cities for the number one prospective market, investors should stay on the lookout.
Why Investing in the Fort Worth Housing Market Is Smart
Is Fort Worth the best place to invest in real estate? You tell me; check out these stats and data on the performance of rental properties in the Fort Worth real estate market.
The following data is provided by Mashvisor’s investment property calculator. Do you have questions about Mashvisor? Read our FAQs and learn about our tools.
Fort Worth Real Estate Market 2019 Overview
- Median Property Price: $292,822
- Price per Square Foot: $137
- Price to Rent Ratio: 15
- Average Days on Market: 25
- Monthly Traditional Rental Income: $1,638
- Traditional Cash on Cash Return: 1%
- Monthly Airbnb Rental Income: $2,665
- Airbnb Cash on Cash Return: 4%
- Airbnb Occupancy Rate: 55%
This city-wide data, coupled with a relatively low cost of living and high population growth projections, is the core of why a Fort Worth investment property is valuable in 2019. However, these aren’t the only reasons backing up rental property investment in the Fort Worth real estate market.
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Related: Keep Your Eye on North Texas Real Estate in 2019
Fort Worth Real Estate Market Trends
1) Home Values
According to Zillow, the median home value in the Fort Worth real estate market is currently $197,400. Fort Worth home values have increased by 8.5 percent over the past year, and are expected to go up another 4.3 percent within the next year. The current market is neutral, so investors should start searching for real estate investment opportunities in Fort Worth now before it gets too competitive.
2) Property Prices
We gave you the median property price, but if you’ve already started your search for Fort Worth houses for sale, you should know that selling prices will differ. The average sale price of a home in Fort Worth is $313,000 and the average sales price per square foot is $116. Still, in the Fort Worth real estate market, homes typically sell at around 10 percent below the listing price.
3) Demand
It’s always important to make sure there’s market demand for your investment to be successful. Fortunately, the Fort Worth population is composed of a good chunk of renters (57.17 percent are homeowners and 42.83 percent are renters). The most common type of housing in the Fort Worth real estate market is single-family homes (accounts for 67.37 percent of total housing units). If you were hoping for a more large-scale Fort Worth real estate investment, that’s a viable option as well (apartments make up more than 23 percent of total housing units).
4) Appreciation
A market which provides strong positive cash flow and experiences appreciation is where to buy investment property. The Fort Worth real estate market has appreciated 60.81 percent over the last ten years and is expected to continue appreciating in 2019. With last year’s appreciation rate of 7.37 percent being higher than over half of the nation’s other markets, property investors can expect to find good fortune in the Fort Worth real estate market.
Related: Cash Flow vs Appreciation: What Should Drive Your Real Estate Investment Decision?
Best Neighborhoods in Fort Worth for Traditional Rentals
Using the data from Mashvisor’s investment property calculator again, we will now list the top neighborhoods in which real estate investors can expect to operate profitable long term rental properties in the Fort Worth real estate market.
You can get access to this tool and analyze any city, neighborhood, or individual property by starting your free trial with Mashvisor now.
Brookside
- Median Property Price: $127,450
- Price per Square Foot: $136
- Price to Rent Ratio: 6
- Monthly Traditional Rental Income: $1,811
- Traditional Cash on Cash Return: 7%
Greenway
- Median Property Price: $112,450
- Price per Square Foot: $171
- Price to Rent Ratio: 7
- Monthly Traditional Rental Income: $1,440
- Traditional Cash on Cash Return: 6%
Worth Heights
- Median Property Price: $141,560
- Price per Square Foot: $120
- Price to Rent Ratio: 9
- Monthly Traditional Rental Income: $1,383
- Traditional Cash on Cash Return: 4%
Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties in Fort Worth that match your criteria in a matter of minutes!
What About Short Term Rentals?
So now you know where to invest for traditional long term rentals, but how about short term rentals? Before you ask that, you should be asking, is Airbnb legal in the Fort Worth real estate market?
The Airbnb regulations in Fort Worth aren’t as complex or strict as they are in other parts of the country, but there are a couple of things to know before investing in Airbnb Fort Worth. In Fort Worth, Airbnbs, VBROs or similar short term rentals are not allowed in residential areas. Instead, they’re limited to commercial and industrial areas that already have a blend of housing and business. Short term rental property owners aren’t required to register with the city and, unlike hotels, short term rentals don’t pay the city’s hotel tax.
Related: Top 3 Cities in the US With Strict Airbnb Regulations
So after taking all of this into consideration, check out these top neighborhoods for Airbnb investment in the Fort Worth real estate market. Note that while these are the top-performing neighborhoods according to Mashvisor’s data, you’ll have to check with local authorities to ensure you can rent out on Airbnb in these areas.
West Morningside
- Median Property Price: $196,300
- Price per Square Foot: $115
- Price to Rent Ratio: 9
- Monthly Airbnb Rental Income: $3,121
- Airbnb Cash on Cash Return: 13%
- Airbnb Occupancy Rate: 62%
Far Greater Northside
- Median Property Price: $166,851
- Price per Square Foot: $118
- Price to Rent Ratio: 14
- Monthly Airbnb Rental Income: $3,018
- Airbnb Cash on Cash Return: 11%
- Airbnb Occupancy Rate: 66%
Jennings- May St. Louis
- Median Property Price: $251,483
- Price per Square Foot: $117
- Price to Rent Ratio: 12
- Monthly Airbnb Rental Income: $3,250
- Airbnb Cash on Cash Return: 10%
- Airbnb Occupancy Rate: 61%
The Fort Worth real estate market is definitely a great investment opportunity in 2019 where you can find the right investment property for your strategy. You should make the most of your investment by doing it with Mashvisor. To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.
Related: Airbnb Rentals or Traditional Rentals? This Tool Will Help You Decide!