DALLAS (CBSDFW.COM) – When Barbara Van Poole decided to put a South Dallas home up for rent last month, she didn’t have to wait long for interest.
Ten applications came in almost instantly for the modest three-bedroom house, at a price of $1,100 a month.
As an experienced realtor, she could have sold the investment property and turned a profit, but she said now is not the right time for that. “There are less homes that we seem to be doing that with and more homes that we seem to be purchasing and leasing.”
The home rental market has exploded across North Texas. Housing activity reports show rental homes are spending just 34 days on the market, compared to 55 in February.
In the same time period, median prices have climbed from $1,200 per month, to $1,350. Realtors report it is not unusual to receive 40 phone calls or emails a day when a new home goes up for rent, especially when priced $1,200 or less.
Susie Fitzgerald, a Southlake-based realtor who also runs a property management company, said even luxury homes, priced above $3,000 a month are going fast. “I think with so much uncertainty with jobs and economy some people are just kinda nervous to commit to a house.”
Realtors say many tenants are coming to North Texas for work, and leaving behind homes in other states that haven’t sold. Others have gone through foreclosures or had difficulty with tightening loan restrictions but preffered living in a home over an apartment.
The situation has opened the door wide open for investors, who are buying, but not at a pace that can keep up with new renters. “I don’t see the rental market changing any time,” said Fitsgerald. “If anything it might get worse before it gets better because you have this exodus out of ownership.”