Introduction
Dallas, Texas, a vibrant city known for its rich history, diverse culture, and booming economy, has seen a significant rise in the popularity of short-term rentals, particularly on platforms like Airbnb.
This guide delves deep into the current state of the short-term rental market in Dallas, providing insights, and statistics, and answering some of the most frequently asked questions about the city.
Market Overview
To understand the dynamics of the short-term rental market in Dallas, let’s delve into some key statistics and figures.
Supply
AS of October 2024, the most popular homes are Studio homes, comprising 26.36% of inventory. This is followed by 2 and 1-bedroom homes at 20.60% and 20.32% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Dallas experienced an appreciation of –0.28%. This data indicates a significant increase in property values.
Median Home Value
As of October of 2024, Homes in Dallas have depreciated by -0.28%. The median home value in Dallas is $308.400 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
As of October 2024, Dallas boasts a significant Airbnb rental market, with approximately 4,722 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $223. The Average Daily Rate is the highest for 5-bedroom homes $329, followed by 4-bedrooms and 3 bedrooms at $305 and $249 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 59.19% for Airbnb rentals in Dallas. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Dallas ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 12.54% in Dallas. This figure suggests that short-term rentals in the city offer a favorable return on investment. Dallas is ranked #35 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Dallas earn an average of $27,533 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Top Places for Airbnb in Dallas
Dallas top submarkets for Airbnb investments include areas like ZIP code 75236, which has the highest gross yield at 23% and an annual revenue of $62,892. In contrast, ZIP code 75212 offers more extensive opportunities with 248 full-time listings, but a lower gross yield of 21%.
Hosts
The market is dominated by property management firms. The largest host is Dalls with 4.75% of the total inventory and an average review of 4.77⭐️s .
Property Tax
According to SmartAsset, the average property tax in Dallas is 1.81%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Guests
The majority of the guests in Dallas come from Texas and are within driving distance. 7.90% of all guests are from Nashville followed by Austin with 4.00%.
Regulations
Dallas short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
FREE Airbnb Market Comparison Guide
Instantly compare the top 100 US vacation rental (Airbnb) markets by returns on investment, occupancy rates, revenue, and a lot more…
Dallas at a Glance
- Median Household Income: The median household income in Dallas, TX is $58,231.
- Climate: Dallas experiences a humid subtropical climate with hot summers and mild winters. The city is also prone to thunderstorms, which can sometimes lead to severe weather conditions.
- Population: Dallas is a bustling metropolis with a diverse population that contributes to its rich culture and dynamic economy.
- Sports: Dallas is home to several professional sports teams, including the Dallas Cowboys (NFL), Dallas Mavericks (NBA), and Dallas Stars (NHL).
- Education: The city boasts several higher education institutions, including Southern Methodist University and the University of Texas at Dallas.
- Safety: Dallas has a crime rate of 8.64 per 1,000 residents for violent crimes and 36.29 per 1,000 residents for property crimes.
- Tourism: Dallas attracts millions of visitors each year. Some of the biggest tourist attractions include the Sixth Floor Museum at Dealey Plaza, Dallas Arboretum & Botanical Gardens, and Reunion Tower. The city welcomed 22.5 million visitors in 2021, who spent a total of $4.4 billion, generating an economic impact of $7.2 billion for the city.
- Peak Season: The best time to visit Dallas is during the spring (March-May) and the fall (September-November) when the weather is pleasant. However, summer, despite the heat, remains the high season for tourism.
Expanding on Dallas’ Appeal
Dallas is not just a hub for business and tourism; it’s a city that offers a unique blend of Southern hospitality, cosmopolitan flair, and cultural diversity. Its arts district is one of the largest in the country, and its culinary scene is burgeoning with a mix of world-class restaurants and local eateries. The city’s history, from its roots as a railroad town to its pivotal role in American history, is showcased in its various museums and historic sites.
Moreover, Dallas is a city of neighborhoods, each with its own character and charm. From the upscale shops of Uptown to the historic streets of Deep Ellum, there’s something for everyone in Dallas. Its green spaces, like the Klyde Warren Park, offer a respite from the urban hustle, while its nightlife is vibrant and diverse.
Conclusion
The short-term rental market in Dallas, TX, presents a lucrative opportunity for investors and hosts. With its rich cultural attractions, sports events, educational institutions, and business opportunities, Dallas continues to attract visitors, making it a prime location for Airbnb and other short-term rental platforms. As the city continues to grow and evolve, the short-term rental market is expected to adapt, offering more diverse and unique accommodations for visitors from all walks of life.
