Posted on July 27, 2012 at 7:11 PM
DALLAS - Real estate agency Zillow reports in the second quarter in Dallas, homes values are up 3.5 percent.
Two Dallas ZIP codes south of the Trinity River are seeing a big yearly hike in value.
In 75216, there's a 14 percent increase, and in 75203, there's an 11.8 percent increase.
But if you take a stroll through 75216, boarded up, unkempt houses are part of one of the top five ZIP codes with rising home values in North Texas.
Long-time resident Cedric Carlock said its hard to miss the blight, but he isn't surprised at Zillow's newest findings.
"Twenty years ago, it was pretty bad over here", Carlock said. "But it's starting to change. It's getting better."
Realtor Dick North said the 14.2 square miles in this South Dallas ZIP code are a place for folks to buy homes and rent them out.
The ZIP code includes South Oak Cliff High School and a fenced-in brick chalet on Michigan Avenue for $299,000, which is on the high end of prices.
North said the average home price hovers around $66,000. North also said 75216 is one of the few places in Dallas where tenants can find rent for under $400 to $500 per month.
"You know, the value is there for an investor," North said. "The prices are so low that they can't help but get a good deal."
And although there's still a few neighborhood eyesores, Carlock believes changing demographics and rising home values is taking this diamond out of the rough.
He also said proximity to public transportation doesn't hurt.
"It's pretty easy to move around," Carlock said.
Some of the area's rising property values can be attributed to Dallas Mayor Mike Rawlings 'Grow South' initiative. His team, along with others, has worked hard to clean up the blight, attract more business and improve area schools.
But Tennell Atkins, economic development chairperson for Dallas' Grow South Initiative, said there is a downside.
Atkins said cheap rent attracts everyone, including transients and slumlords, which destroy community.
To protect homeowners, last year the City of Dallas passed a ordinance requiring all landlords to register their properties or risk fines up to $2,000 per home.
âIf the landlord got a piece of the property and we know that landlord is renting it to the drug person or whatever, then we know the landlord who owns the property, so you're going to put pressure on him and put pressure on the tenant," Atkins said.
Since the City of Dallas passed the measure requiring all landlords to register rental property, 548 rental homes have been identified in the area.