Hometown Real Estate Glory

Dallas declared one of the best U.S. cities to buy a home this year

Dallas declared one of the best U.S. cities to buy a home this year

3065 Kinkaid Dr. in Dallas
Dallas is the No. 6 housing market to invest in for 2016. Photo courtesy of Keller Williams

Looking to make a big housing investment this year? According to Forbes, you’re in the right place. In an annual report, the publication names Dallas the No. 6 "best buy city" for 2016.

Forbes teamed up with Local Market Monitor, a data company that tracks home prices and economic factors in more than 300 housing markets, to determine the top 20 American cities that promise a healthy real estate market to invest in this year.

Although these places are great for people looking to put their money into rental properties, it doesn’t bode well for first-time homebuyers in the low- and middle-income bracket due to high housing costs. Even so, these cities are where aspiring homeowners have the best opportunity to make an economically sound purchase, according to Forbes.

Down from its No. 5 spot in 2015, Dallas places in the top 10 due to these main factors: healthy job growth (3.5 percent annually), strong population growth (6.2 percent from 2011 to 2014), and anticipated home price appreciation (11 percent annually).

Texas has the second-greatest number of cities on Forbes’ list, behind Florida. In addition to Dallas, where homes average $211,000, two other Lone Star State cities make the cut. San Antonio comes in at No. 3, where home prices average $201,000, while Austin places at No. 7, with an average home price of $281,000.

Forbes points to Dallas' welcoming of the relocation of major corporations Toyota, State Farm Insurance, and Liberty Mutual Insurance; Austin's growth in the high-tech sector; and San Antonio’s high number of financial firms and data centers as boosting each metro area's individual ranking.

Ingo Winzer, founder and president of Local Market Monitor, predicts that it will be a while before Texas prices reach the point where these cities will no longer be good investments. This marker, he estimates, is overpriced housing by about 20 percent, which is a nice indication for Dallas, where the current under priced calculation sits at 5 percent.