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Thinking about investing in real estate in Arlington in 2025? You're on the right track.
Despite economic shifts, Arlington's real estate market shows promising stability and growth potential.
In this blog post, we will explore why investing in Arlington real estate remains a solid option.
We rely on reliable data and statistics from trusted sources to provide a comprehensive analysis.
By the end, we will share our own conclusions based on this thorough examination. Enjoy the read!
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
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1) Arlington's "vacancy rate" of 7.0% shows it's a bustling and competitive market
Signal strength: strong
The vacancy rate in Arlington is currently at 7.0%, which is considered very low. This low vacancy rate indicates that the market is highly occupied and competitive, suggesting strong demand for housing in the area.
When demand is high, it often means that property values are likely to appreciate over time, making it a potentially lucrative investment. Additionally, properties in such markets are easier to rent out, ensuring a steady rental income for investors.
In Arlington, modern, one-bedroom apartments in the Clarendon area are particularly popular and tend to be rented quickly. These types of properties are in high demand due to their proximity to amenities and public transportation.
If the vacancy rate were to rise significantly, say above 10% or more, it might indicate a less favorable market for property investment.
Sources: NeighborhoodScout, DataUSA, USCensus
2) Arlington boasts a commendable livability score of 78
Signal strength: moderate
The fact that the livability score in Arlington is 78 is a strong indicator that buying property here could be a wise investment.
One reason for this high score is the excellent public transportation system, which makes commuting easy and convenient for residents. Additionally, Arlington boasts top-rated schools, which is a significant draw for families looking to settle in the area.
Another factor contributing to the livability score is the abundance of parks and recreational areas, providing residents with ample opportunities for outdoor activities. These characteristics make Arlington a desirable place to live, which in turn can drive up property values.
If the livability score were to drop below 65, it might indicate potential issues that could affect the attractiveness of investing in real estate in Arlington.
Source: AreaVibes
3) Arlington boasts a strong employment rate of 68.8%, indicating robust job availability
Signal strength: moderate
The employment rate in Arlington is at 68.8%, which is considered high compared to many other areas in the United States.
This high employment rate suggests a strong and stable local economy, which is a positive indicator for real estate investment. When more people are employed, they have the means to purchase homes and pay rent, driving demand in the housing market.
In Arlington, the major employment sectors include government, technology, and education. Companies like Amazon and Boeing have a significant presence, providing numerous job opportunities.
If the employment rate were to drop below 60%, it might indicate economic instability, which could make real estate investment less attractive.
4) By October 2025, the Dr. Martin Luther King, Jr. Drive Construction Project in Arlington, Texas, will improve traffic flow and increase property values
Signal strength: moderate
The Dr. Martin Luther King, Jr. Drive Construction Project in Arlington, Texas, is a significant infrastructure development that promises to boost the area's appeal and accessibility.
Set for completion in October 2025, this project involves constructing a new roadway connecting East Bardin Road to Engleside Drive, with clear pavement markings leading to Southeast Green Oaks Boulevard. This development is expected to boost regional mobility, making it easier for residents and visitors to navigate the area.
Improved infrastructure like this can lead to increased property values. When an area becomes more accessible and attractive, it often draws more interest from potential buyers and investors, driving up real estate demand and prices. This aligns with the City Council’s priorities of developing great neighborhoods, further enhancing the area's desirability.
Funding for this project comes from various sources, including street and water bond funds, the Tarrant County 2021 Transportation Bond, and the North Central Texas Council of Governments (NCTCOG) through the Surface Transportation Block Grant. Such diverse funding underscores the project's importance and potential impact on the community.
Sources: City of Arlington
5) Arlington, Texas, is experiencing a population increase of "0.9%."
Signal strength: moderate
The population growth in Arlington, Texas, is a promising indicator for potential property investors.
Over the years, Arlington has experienced a steady increase in population, with a notable growth of 18.99% from 2000 to 2023. This consistent rise, averaging an annual growth rate of 0.83%, suggests a stable demand for housing in the area. More recently, from 2022 to 2023, the population grew by 0.93%, reinforcing the trend of gradual expansion.
Such growth is often linked to a thriving local economy and an influx of new residents seeking opportunities, which can drive up property values. As the population continues to rise, the demand for housing is likely to increase, potentially leading to appreciation in property values over time.
Additionally, Arlington is part of the broader Dallas-Fort Worth-Arlington metro area, which is projected to grow significantly by 2034. This regional growth can further enhance Arlington's appeal as a strategic location for real estate investment, benefiting from the economic dynamism of the metro area.
Sources: Neilsberg, Texas Demographics
6) Airbnb or "short-term rental" in Arlington offers a fairly appealing profit margin of 4.0%
Signal strength: moderate
The cash-on-cash return on Airbnb in Arlington is 4.0%, which is considered moderately attractive for investors. This percentage indicates that the income generated from short-term rentals is relatively healthy compared to the initial cash investment.
Arlington attracts a variety of short-term tenants, including business travelers, tourists visiting Washington D.C., and families attending events or visiting local attractions. These groups often seek convenient and comfortable accommodations, making Airbnb properties in Arlington appealing.
Additionally, Arlington's proximity to the nation's capital ensures a steady flow of visitors year-round, contributing to the demand for short-term rentals. This consistent demand helps maintain a stable occupancy rate, which is crucial for achieving a good return on investment.
However, if the cash-on-cash return were to drop below 2.0%, it might indicate that the investment is less favorable, as the income would not sufficiently cover the costs and risks associated with property ownership.
Source: Mashvisor
7) The "cash-on-cash return" of 4.0% for long-term rentals in Arlington is reasonably appealing
Signal strength: moderate
The cash-on-cash return of 4.0% in Arlington indicates a moderate level of profitability for real estate investors.
This percentage suggests that investors can expect a reasonable return on their initial cash investment, making it an attractive option for those looking to grow their wealth. Arlington is home to a variety of long-term tenants, including government employees, military personnel, and professionals working in nearby Washington, D.C.
These tenants often seek stable and convenient housing, which can lead to consistent rental income for property owners. The presence of these reliable tenants further supports the idea that investing in Arlington real estate is a sound decision.
If the cash-on-cash return were to drop below 2.0%, it might indicate a less favorable investment opportunity in the area.
Source: Mashvisor
8) Arlington's median home price is 28% lower than the national average
Signal strength: minimal
The fact that Arlington still has a median home price 28% below the national average suggests that there is room for growth in property values.
When home prices are lower than the national average, it often indicates potential for appreciation as the market catches up. This makes buying a property in Arlington a potentially good investment opportunity for those looking to capitalize on future increases in value.
In Arlington, the most expensive properties are likely luxury single-family homes in areas like Clarendon, known for their high demand and prime location. On the other hand, the cheapest properties might be older studio apartments in neighborhoods like Nauck, where prices are more accessible.
If the median home price in Arlington were to rise above the national average by a significant margin, it might suggest that the market is becoming overvalued, potentially reducing the attractiveness of investment.
Source: Zillow
So, is investing in real estate in Arlington a solid option in 2025? Absolutely!
Investing in real estate in Arlington in 2025 is a smart move, and here's why.
First off, the vacancy rate is a low 7.0%, indicating a bustling and competitive market. This means properties are in high demand, which often leads to appreciating property values and easier rental opportunities. Plus, Arlington's livability score of 78 highlights its appeal, thanks to excellent public transportation, top-rated schools, and abundant parks.
Moreover, the employment rate stands at 68.8%, reflecting a strong local economy with major employers like Amazon and Boeing. This economic stability supports a healthy housing market. The upcoming Dr. Martin Luther King, Jr. Drive Construction Project will further enhance the area's accessibility and attractiveness, likely boosting property values.
Additionally, Arlington's population is on the rise, with a 0.9% increase, signaling ongoing demand for housing. The cash-on-cash return of 4.0% for both Airbnb and long-term rentals is appealing, ensuring a reasonable return on investment. Lastly, with the median home price 28% below the national average, there's significant potential for property value growth. All these factors make Arlington a promising real estate investment destination in 2025.