Real Estate Investment: A Historical Pillar of Wealth Creation
Investing in real estate is a time-honored approach to wealth creation as it can combine the potential for tangible future asset appreciation with immediate passive income.
Dallas-Fort Worth is currently prime for real estate investing. The Dallas-Fort Worth metroplex is expected to experience sustained demand for multifamily housing due to the area’s impressive population growth, strong economic trends and overall changes in housing preferences. As one of the hottest real estate markets in the United States, it’s an opportunity worth exploring.
A direct approach to tapping into passive income possibilities is collaborating with a real estate investment firm like Ashland Greene that is known for its expertise in the Dallas–Fort Worth multifamily real estate sector.
“Investor education and transparency are two key tenants of our business model. It’s why we provide our investors with as much information as possible about the DFW metroplex and the real estate investments that they are considering,” says Shakti C’Ganti, founder and Chief Executive Officer of Ashland Greene. “By including detailed financial data, market analysis, and other key metrics we help investors make informed decisions.”
Population Trends and the Multifamily Real Estate Sector
Multifamily housing demand in DFW is set to benefit from continued population growth. From 2000 to 2022, Texas gained over 9 million residents, doubling the rest of the nation’s population growth rate at 16%.** The trend continues as Texas’ population grew by nearly half a million people in 2023, more than any other state in the country according to recent estimates from the U.S. Census Bureau.
Population growth in the metropolitan area is expected to continue to grow as families relocate to Dallas-Ft. Worth for better job opportunities and wages, a lower cost of living and highly rated school districts. A key driver to this growth has been the growth in the business sector. Dallas-Fort Worth has added 222 corporate headquarters since 2010.** Since 2020, over 139 companies have relocated to Texas. Dallas is now home to 24 Fortune 500 companies from eight business sectors including Goldman Sachs, McAfee, Wells Fargo, Caterpillar, and Samsung. In November 2023, the U.S. Bureau of Labor and Statistics listed DFW as #1 on the list of ten areas that gained total nonfarm payroll employment over the year.** As families relocate to the DFW metroplex, they often choose to rent for a period of time before considering buying a home, furthering demand for apartments. Ashland Greene expects that demand fueled by population growth will continue to outpace the supply of multifamily housing in the market.
Economic Indicators and Their Impact on Rental Demand
Various economic indicators influence the dynamics of the multifamily real estate market, including interest rates and national and local economic trends.
Fluctuations in interest rates can significantly impact an individual’s decision to buy or rent a home. Mortgage rates reached their highest levels in more than 20 years in 2023, while single-family home prices remained near historically high levels as demand exceeded supply.** Those factors are to create challenging conditions for home buyers in 2024, which will likely drive continued demand for multifamily housing.
Additionally, Gross Domestic Product (GDP) growth, an indicator of overall economic expansion, has historically led to robust demand for investing in real estate.
According to the Bureau of Economic Analysis, the Dallas-Fort Worth-Arlington Metropolitan Statistical Areas (MSA) GDP was $688.9 Billion in 2022, accounting for 3 percent of the total U.S. metropolitan GDP. In 2022, Dallas-Fort Worth-Arlington real GDP grew 5.7 percent; during the same timeframe, the U.S. metropolitan GDP grew by 2.1 percent.** The twelve counties of the Dallas-Fort Worth metroplex showed no signs of slowing.
“For the first time, six fast-growing states in the South — Florida, Texas, Georgia, the Carolinas, and Tennessee — are contributing more to the national GDP than the Northeast, with its Washington-New York-Boston corridor, in government figures going back to the 1990s,” Bloomberg reported in June of 2023.**
“The switch happened during the pandemic and shows no signs of reverting,” the report continued. “The Southeast accounted for more than two-thirds of all job growth across the U.S. since early 2020, almost doubling its pre-pandemic share.”
“At Ashland Greene, we stay on top of these predictors and plan our investment strategy accordingly,” says C’Ganti.
Demographics Influence on Multifamily Properties
In addition to a growing population and strong macroeconomic trends in the metroplex, demographic changes are also creating demand for multifamily housing. Urban migration patterns, generational shifts in housing preferences, and changes in workplace norms all play a role in determining the most strategic investment locations.
Projecting Future Rental Market Trends
Forecasting the trajectory of the multifamily real estate market in Dallas-Fort Worth demands a focus on historical trends, current indicators, and having a finger on the pulse of the DFW metroplex. Investors can make informed decisions with the right data and astute local advisors to analyze patterns and trends.
Ashland Greene monitors these economic indicators in order to identify potential investment opportunities.
The investment firm’s team focuses on primary submarkets within Texas that demonstrate strong demographics, income growth levels, supply and demand imbalances, and positive development trends.
Partnering With Ashland Greene
A real estate investment firm allows you to potentially earn passive income by investing in a real estate fund through a private placement. Investing in multifamily real estate can offer a range of benefits to investors, including portfolio diversification, a potential hedge against inflation, steady income through distributions, tax benefits, and potential appreciation.
Ashland Greene offers a unique opportunity for accredited investors to realize the benefits of owning multifamily real estate without the burdens of property management. The firm’s investment platform allows investors to earn passive income from the DFW multifamily real estate market without taking on the day-to-day maintenance and rent-collecting responsibilities of multifamily properties.
Investing in DFW multifamily real estate and partnering with Ashland Greene may be the excellent opportunity you’ve been looking for to generate passive income earnings and build generational wealth.
If you would like more information, contact us at Investors@ashlandgreene.com
The information provided herein is for informational purposes only and does not constitute an offer to sell or the solicitation or an offer to buy securities. This information does not constitute investment, tax, or legal advice, and potential investors are encouraged to consult with their advisers.
** Forbes, “Texas Moving Statistics 2024” https://www.forbes.com/home-improvement/moving-services/texas-moving-statistics/#:~:text=Over%209%20million%20people%20moved,lower%20than%20the%20national%20average Accessed 20 Jan, 2024** U.S. Census Bureau, “Texas Joins California as State with 30-Million-Plus Population” https://www.census.gov/library/stories/2023/03/texas-population-passes-the-30-million-mark-in-2022.html#:~:text=From%202000%20to%202022%2C%20the%20state%20gained%209%2C085%2C073%20residents%2C%20more,Nevada%2C%20Utah%2C%20and%20Idaho Accessed 20 Jan. 2024** Texas Tribune, “Texas gained more people than any other state in the last year” https://www.texastribune.org/2023/12/19/texas-2023-population-growth-census/ Accessed 20 Jan. 2024** U.S Bank.com “The impact of today’s higher interest rates on the housing market” https://www.usbank.com/investing/financial-perspectives/investing-insights/interest-rates-impact-on-housing-market.html Accessed 20 Jan. 2024 Accessed 20 Jan. 2024
** City of Dallas, Economic Development https://www.dallasecodev.org/341/Economic-Indicators & https://www.dallasecodev.org/341/Economic-Indicators Accessed 20 Jan. 2024
** Site Selection Group, “U.S. Metro Areas with the Highest Projected 5-Year Population Growth” https://info.siteselectiongroup.com/blog/us-metro-areas-with-the-highest-projected-5-year-population-growth Accessed 20 Jan. 2024
** U.S. Bureau of Labor Statistics, Dallas-Fort Worth Area Employment — November 2023 https://www.bls.gov/regions/southwest/news-release/areaemployment_dallasfortworth.htm Accessed 20 Jan. 2024
**2023, Dallas Regional Chamber | 2023 Annual Report, https://www.dallaschamber.org/wp-content/uploads/2023/01/2023-DRC-Annual-Report-2023.01.18.pdf Accessed 20 Jan. 2024
**Saldana, Sean, “Since 2020, More than 100 Companies Have Relocated to Texas – 40% from California.” Texas Standard, 24 Mar. 2023, www.texasstandard.org/stories/texas-economy-boomcalifornia-relocated-tesla-mclaren-musk/ Accessed 20 Jan. 2024
**Bloomberg, “A $100 Billion Wealth Migration Tilts US Economy’s Center of Gravity South” https://www.bloomberg.com/news/features/2023-06-29/millions-move-to-the-south-as-us-economy-favors-its-wealth-job-opportunities Accessed 20 Jan. 2024
Additional resources accessed 20 Jan. 2024
2023 U .5. Multifamily Investment Forecast. Real Estate Investment Services, https://www.marcusmillichap.com/research/market-report/multiple-markets/2023-us-multifamily-investment-forecast Accessed 22 Nov. 2023.
JLL Research, Oxford Economics, US Census Bureau
2023, Dallas Regional Chamber | 2023 Annual Report, https://www.dallaschamber.org/wp-content/uploads/2023/01/2023-DRC-Annual-Report-2023.01.18.pdf
*Bureau, US Census. Census.Gov, 18 Nov. 2023, www.census.gov/.
https://www.noradarealestate.com/blog/texas-housing-market/
https://www.statsamerica.org/sip/rank_list.aspx?rank_label=pop1
https://www.texastribune.org/2023/12/19/texas-2023-population-growth-census/
https://demographics.texas.gov/Resources/TPEPP/Estimates/2022/2022_txpopest_place.pdf