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Thinking about investing in real estate in Fort Worth in 2025? You're on the right track.
Fort Worth's real estate market is showing promising signs, with steady growth and strong demand making it a solid investment choice.
In this blog post, we will explore why Fort Worth is a great place to invest in real estate in 2025.
We rely on reliable data and statistics from trusted sources to provide you with a clear picture of the market.
Our thorough analysis will guide you through the numbers, and we will share our own conclusions at the end. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
1) Fort Worth boasts an impressive "livability score" of 80, highlighting its excellent quality of life
Signal strength: strong
The livability score of 80 in Fort Worth is considered excellent, indicating a high quality of life for residents.
This score is supported by the city's strong job market, with diverse employment opportunities in industries such as aerospace, healthcare, and technology. Additionally, Fort Worth boasts affordable housing options compared to other major cities, making it attractive for both families and investors.
Another key factor is the vibrant cultural scene, including museums and music festivals, which enhances the city's appeal and attracts new residents. These characteristics contribute to a stable and growing population, which is a positive indicator for real estate investment.
However, if the livability score were to drop below 70, it might suggest potential challenges in the local market, such as declining amenities or economic issues.
Source: AreaVibes
2) With an "8.5%" vacancy rate, Fort Worth's market is highly occupied and competitive
Signal strength: strong
The vacancy rate of 8.5% in Fort Worth suggests that most properties are occupied, indicating a strong demand for housing.
When the market is highly occupied, it means that tenants are actively seeking places to live, which can lead to increased rental prices. This competitive environment is a positive sign for investors because properties are less likely to remain vacant for long periods, ensuring a steady rental income.
In Fort Worth, well-maintained single-family homes in areas like the Arlington Heights neighborhood are particularly attractive to renters. These types of properties are often in high demand due to their proximity to amenities and good schools, making them easier to rent out.
If the vacancy rate were to rise significantly, say above 12% or more, it might indicate an oversupply of properties, which could make it harder to find tenants.
Sources: NeighborhoodScout, DataUSA, USCensus
We created this infographic to show how property prices in Fort Worth compare to other big cities in Texas. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
3) Fort Worth boasts a strong employment rate of 66.4%
Signal strength: moderate
The employment rate in Fort Worth is at 66.4%, which is considered high compared to the national average in the United States. This high employment rate indicates a strong local economy, which is a positive sign for potential real estate investors.
When people have jobs, they are more likely to buy homes, which can drive up property values. In Fort Worth, the major employment sectors include healthcare, manufacturing, and aviation, providing a diverse economic base that supports job stability.
Some of the major employers in the area are Lockheed Martin and American Airlines, which employ a significant number of people and contribute to the city's economic health. A strong job market often leads to increased demand for housing, making it a potentially lucrative investment opportunity.
However, if the employment rate were to drop significantly below 60%, it might indicate economic challenges that could affect the real estate market negatively.
4) By 2025, Fort Worth's real estate value is likely to increase because of the "Southeast Connector Project" and the new Texas A&M-Fort Worth campus
Signal strength: moderate
Investing in Fort Worth real estate by 2025 could be a strategically sound decision due to significant infrastructure and development projects underway.
The Southeast Connector Project is a major infrastructure initiative that involves rebuilding and widening key interstates, such as I-20 and I-820. This project aims to reduce congestion, improve safety, and enhance mobility, benefiting over 200,000 daily drivers. By addressing one of Texas's most congested areas, it is expected to support economic development in the region.
Additionally, the development of the Texas A&M-Fort Worth campus is seen as a transformative catalyst for downtown Fort Worth. With the first building expected to be completed by December 2025, this campus is anticipated to attract new jobs, residents, and businesses, further boosting the area's appeal.
The Fort Worth Convention Center renovation is another significant project that aims to enhance facilities and attract more events and visitors. This renovation includes new exhibition space, meeting rooms, and a large ballroom, which could increase the area's economic activity.
Sources: Arlington TX News, Downtown Fort Worth Inc.
Our team designed this infographic to show how competitive the real estate market in Fort Worth is vs. other major cities in Texas. It shows the percentage of sales above the list price, a key indicator of market competition.
5) Fort Worth, Texas, is experiencing a population boom, with numbers rising by 5.9%
Signal strength: moderate
The population growth in Fort Worth, Texas, is a strong indicator of economic vitality and potential for property investment. A 5.9% increase in population from 2020 to 2023 highlights the city's appeal and growing demand for housing.
As Fort Worth added 54,866 people during this period, it became the fastest-growing city among the top 25 largest cities in America. This surge in residents suggests a thriving local economy, attracting new businesses and job opportunities, which in turn fuels the real estate market.
With the city's population nearing one million, the demand for housing is expected to rise, leading to increased property values. This trend is supported by long-term growth patterns, such as the addition of 175,183 people from 2010 to 2020, representing a 23.41% growth rate.
Future projections indicate that Fort Worth will continue to expand, potentially crossing the one million population mark soon. This sustained growth is a positive signal for real estate investors, as it suggests a stable and expanding market with opportunities for appreciation in property values.
Sources: City of Fort Worth Comprehensive Plan, WFAA News, Neilsberg Insights, Fort Worth Economic Development Partnership, Synergos Technologies, Inc.
6) Airbnb or "short-term rental" in Fort Worth offers a decent profitability rate of 5.0%, making it a fairly appealing investment
Signal strength: moderate
The cash-on-cash return on Airbnb in Fort Worth is 5.0%, which is considered moderately attractive for investors. This percentage indicates that the property can generate a decent return on the cash invested, making it a potentially good investment.
Fort Worth attracts a variety of short-term tenants, including business travelers attending conferences and events in the city. Additionally, tourists visiting Fort Worth often include families exploring cultural attractions like the Fort Worth Stockyards and the Kimbell Art Museum.
These visitors typically seek accommodations that offer convenience and comfort for short stays, which makes Airbnb properties appealing. The steady influx of these types of guests can help maintain a consistent occupancy rate, contributing to the property's profitability.
If the cash-on-cash return were to drop below 3.0%, it might suggest that the investment is less attractive, potentially due to lower rental demand or higher expenses.
Source: Mashvisor
This infographic we have made will show you how market values have changed during the last decade in Fort Worth vs other major places in Texas. Here, the percentage increase or decrease in market value will help you see long-term trends.
7) A 5.0% "cash-on-cash return" for long-term rentals in Fort Worth is reasonably appealing
Signal strength: moderate
The cash-on-cash return of 5.0% in Fort Worth is a key indicator that investing in property here could be beneficial.
This percentage suggests that the income generated from the property is relatively favorable compared to the initial cash investment. In simple terms, it means that for every dollar you invest, you are getting a decent return, which is a positive sign for potential investors.
Fort Worth attracts long-term tenants such as families and professionals who are looking for stable housing options. These tenants often seek affordable living with access to amenities like schools, parks, and job opportunities, making the area appealing for property investment.
If the cash-on-cash return were to drop below 3.0%, it might indicate that the investment is less attractive, as the returns would not justify the initial outlay.
Source: Mashvisor
8) Fort Worth's median home price is significantly lower, at 32% below the national average
Signal strength: minimal
The fact that Fort Worth still has a median home price 32% below the national average suggests that there is room for growth in property values. This means that as the city continues to develop and attract more residents, property values are likely to increase, making it a potentially lucrative investment opportunity.
In Fort Worth, the most expensive properties are likely to be luxury homes in areas like Westover Hills, where affluent buyers seek exclusivity and high-end amenities. On the other hand, the cheapest properties are probably small single-family homes in neighborhoods like Stop Six, which may appeal to first-time buyers or investors looking for affordable options.
Investing in Fort Worth real estate could be particularly advantageous if you focus on emerging neighborhoods with potential for appreciation, as these areas may offer the best returns. However, it's important to consider that market conditions can change, and what seems like a good investment now might not hold the same promise in the future.
If the median home price in Fort Worth were to rise to above the national average, it might indicate that the market has become less favorable for new investments.
Source: Zillow
This infographic designed by our team breaks down the latest livability score in Fort Worth but also in other big cities in Texas. It provides a clear view of which locations offer the best overall living conditions, which is a good thing to know if you want to buy real estate.
9) A local in Fort Worth could afford a house in about 3.9 years, which is reasonable
Signal strength: minimal
In Fort Worth, it takes around 3.9 years for a local to buy a house, which is a reasonable timeframe compared to many other cities. This suggests that the housing market is relatively accessible, making it a potentially good investment opportunity.
The median household income in Fort Worth is approximately $77,082, which indicates a stable economic environment for potential homebuyers. With a median home price of about $297,883, homes are priced within reach for many residents, supporting the idea that buying property here is feasible.
When the local population can afford homes within a few years, it often means there is a healthy balance between income and housing costs. This balance can lead to steady demand and appreciation in property values, making it attractive for investors.
If the time to buy a house were to increase significantly, say to over 6 years, it might indicate a market imbalance where homes become less affordable, potentially deterring investment.
Source: USCensus
So, is it a good time to invest in Fort Worth real estate in 2025? Absolutely!
Investing in Fort Worth real estate in 2025 is a smart move, and here's why.
First, the city boasts an impressive livability score of 80, indicating a high quality of life, supported by a strong job market and affordable housing. This makes it attractive for both families and investors. The 8.5% vacancy rate further highlights the strong demand for housing, ensuring properties are occupied and generating steady rental income.
Moreover, Fort Worth's employment rate of 66.4% and ongoing infrastructure projects like the Southeast Connector Project and the new Texas A&M-Fort Worth campus are set to boost the local economy and real estate values. The city's population is also booming, with a 5.9% increase, driving up demand for housing and potential property appreciation.
With a cash-on-cash return of 5.0% and median home prices 32% below the national average, Fort Worth offers a lucrative investment opportunity. Locals can afford a house in about 3.9 years, indicating a balanced market. All these factors make Fort Worth a promising destination for real estate investment in 2025.
Related analyses:
- Here is why prices are going to climb in 2025 in Fort Worth