According to the Emerging Trends in Real Estate 2015 report, just co-published by PwC US and the Urban Land Institute (ULI), Dallas-Fort Worth ranks No. 5, with two other Texas cities, Houston and Austin ranking at No. 1 and 2 respectively. San Francisco ranks No. 3 and Denver No. 4.
According to the report, Dallas-Fort Worth’s growth rate may be more sustainable than Houston’s owing to the area’s economic diversity. The report states: “The [Dallas-Fort Worth] market continues to be attractive to real estate investors because of its strong job growth, which benefits from the low cost of living and doing business. Single-family housing in the market is the highest ranked property sector – and it also has the highest ranked industrial sector (number four) among the top five markets from this year’s survey.”
The sustained performance of the U.S. commercial real estate industry in general is expected to continue in 2015, fueled by improving fundamentals and continued investor appetite – both domestic and foreign, according to the report. “Unlike previous reports and previous cycles, we are seeing sustained growth,” said Mitch Roschelle, partner, U.S. real estate advisory practice leader, PwC. “In the past several years, we reported that real estate market participants’ main fears revolved around the uncertainty with the economy. Now, the trepidation in their eyes has more to do with the ability of the growing real estate markets to adapt to a series of mega trends impacting society and the global economy. These mega trends include accelerating urbanization, demographic shifts and the impact of distributive technological advancements.”
For a copy of the report:
uli.org/wp-content/uploads/ULI-Documents/Emerging-Trends-in-Real-Estate-2015.pdf