What does this indicator measure?
This indicator reports the median gross rent for a two-bedroom apartment in the Dallas Primary Metropolitan Statistical Area (PMSA). The data are collected and calculated by the Department of Housing and Urban Development (HUD) as part of its market research associated with administering the Section 8 program. HUD also extrapolates estimated median rent for apartments of different numbers of bedrooms, and those data are presented as well. HUD median gross rents for other cities are also provided for context. Gross rent is defined as cash rent plus the cost of essential utilities (electricity and/or gas, water, and sewage) not already included in the rent. Because apartment complexes vary as to which utilities are included in the cash rent, gross rent provides a uniform variable for comparison, in addition to providing a truer estimate of the cost of housing.
Why is this indicator important?
This indicator provides valuable information on the rental housing market. According to the U.S. Census Bureau, 37% of Dallas area households are renters. Therefore, in assessing the affordability and desirability of housing in the Dallas area, we cannot focus on homeowners alone. Many people choose to rent their home, for a variety of different reasons. Some people move frequently, and the significantly increased transaction costs and risk of owning a home for a short time may outweigh the benefits of building equity. Young families may need time to accumulate the savings necessary for a down payment. Because people tend to choose larger and higher quality homes when buying than when renting, owning can be more expensive than renting. Some families may prefer the higher cash flow over owning a nicer home. Many lower-income families with unstable income, low savings, and poor credit may be unable to qualify for a home loan.
Although for most people, homeownership is an ultimate aspiration in life, it is neither appropriate nor feasible for many households at any given time. Thus, in order for a city to thrive, it must provide a diverse mix of housing options that accommodates the financial circumstances and preferences of its residents. Rental housing is a large and important component of the housing market. Therefore, this indicator provides important information about the costs of rental housing in the Dallas area.
How are we doing?
According to the Department of Housing and Urban Development (HUD), gross rents for median-priced apartments in 2006 in the Dallas PMSA are as follows:
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$575 for a studio apartment
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$640 for a one-bedroom apartment
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$777 for a two-bedroom apartment
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$1,031 for a three-bedroom apartment
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$1,249 for a four-bedroom apartment
It should be noted that HUD directly calculates the median gross rent for a two-bedroom apartment. However, the other rents listed above are equivalent median gross rents based on the historical relationship between gross rents for two-bedroom apartments and gross rents for apartments with other numbers of bedrooms, and not the result of direct surveying.
Compared with many of the largest cities in the country, Dallas has very low rental prices. San Francisco and Boston topped the list with $1,685 and $1,434, respectively, for a two-bedroom apartment. Other metropolitan areas with comparable HUD median two-bedroom gross rents include the following:
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Detroit, MI
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$826
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Atlanta, GA
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$818
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Jacksonville, FL
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$806
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Austin, TX
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$804
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Baton Rouge, LA
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$774
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Phoenix, AZ
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$770
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Pittsburgh, PA
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$767
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Portland, OR
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$758
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Houston, TX
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$743
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San Antonio, TX
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$732
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