While job growth is good for the nation’s economy, rising housing costs can be hard on the workforce and businesses alike. In fact, the climbing home prices and apartment rents in the Dallas-Fort Worth area could result in a domino effect – and, force North Texas businesses into boosting the wages of their workers. As more and more of those workers have to reconsider or delay the purchase of a home and opt for apartment living as an alternative, the need for renters insurance in Texas will increase substantially.
According to the latest statistics provided by the S&P/Case-Shiller Home Price Indices, home prices in Dallas rose 8.6 percent year-over-year in February, surpassing a previous milestone of the region’s housing boom peak. Meanwhile, Fort Worth’s annual effective rents grew 6.8 percent year-over-year in March, which translates into the city’s highest rent gain in the current real estate cycle.
Dallas didn’t fare much better with a reported 6 percent annual effective rent growth for the same time period. What this means is that Dallas and Fort Worth’s annual rent increases surpass the national effective rent growth of 5 percent. And, if home prices and rents continue to rise at their present rate, they’ll outpace both inflation and wage gains.
However, finding the cheapest renters insurance in Texas isn’t an impossible task. To begin with, renters insurance is not a huge expense and it’s well worth the cost should you be faced with a loss due to fire, theft, or someone injures themselves in your apartment. The cost of coverage is normally reduced further if you bundle renters and auto insurance with the same insurance carrier.
As the Dallas-Fort Worth area continues to add jobs to the region, apartment owners can expect to see their rental prices go up by 5.4 percent, which again outpaces the national average. Needless to say, that job growth has fueled a strong demand for apartments and that, in itself, has brought numerous new planned developments to completion.
Researchers predict that, in the future, wages – which are often a lagging indicator of the economy – could be expected to rise by as much as 5 percent for entry level jobs, or occupations considered in low demand, to a 10 percent rise for high demand positions or occupations in North Texas.
In an effort to keep up with the growing workforce and residences to accommodate its demands, Fort Worth received 574 new apartments in the first quarter of 2015 and Dallas received 3,460 new apartments. For the year, North Texas is expected to get 15,864 new apartments, which is substantially more than last year’s 11,389 new apartments.
Despite the escalating rent prices, both markets are consistently full, showing the obvious need for additional rental housing. After all, the numbers speak for themselves as occupancy in Dallas and Fort Worth continues to be high, with 95.1 percent and 95.2 percent, respectively.
If you’re planning on relocating or have just recently moved to the Dallas – Fort Worth area, remember – renters insurance is just a click or phone call away. It can give you peace of mind without tearing a hole in your wallet and save you money in the long run.
So, make sure you’re getting the best rate on your renters insurance. Why not get a free renters insurance quote today?
Do you believe having renters a wise choice? Feel free to share your thoughts in the comments section below.