APARTMENTS vs RESIDENTIAL RENTALS IN DALLAS
January 4th, 2011
The persistent spasms of the real estate market have had a ripple effect throughout communities nationwide. Foreclosures have led to a secondary investor sweep-up. The pressure of foreclosures to come has led many owners to rent out their second properties, and in some cases even their primary residences. The result is a double-edged sword in the residential rental market. There are too many houses available for rent, and the prices are too high.
DO THE MATH
Even with this predicament keeping potential tenants away from the residential rental market, the availability of Dallas apartments continues to take pressure off the Metroplex population. By renting an apartment, one frees up considerable capital, which is injected straight back into the local economy. Whereas residential rentals are hovering in the $1175 to $1600 range, Dallas apartments average $700 to $900 in the downtown area. The general rule is that the further out you move, the less you’ll have to pay.
WORK TO DO
Apartments also have an advantage over residential rentals in the form of utilities, which are often included in one’s rent in a Dallas apartment. It simply costs more to heat and cool a house than it does an apartment. In the heat of a Texas summer, that can add up quickly. Apartment living also eliminates the need for landscaping, and the associates costs of owning and operating landscaping equipment.
The residential rental market will correct itself along with the housing market – in due time. Meanwhile, Dallas apartments have the advantage, to everyone’s benefit.