November’s rents and deposits paid for single-family homes rose when compared to the preceding 12-month rent average. This news is tempered by the fact that the homes leased during this month were newer, lifting the appeal and rent of these homes.This average rent of $995 for November 2014 rose 10.5% compared to the 12-month average of $896.
This gain, at first blush, gives the appearance the market brought a $99 rent increase during November 2014. This outcome, however, is tempered by fact that the age of the leased housing stock dropped by 7 years when compared to the previous month and the past year’s average. In particular, Abilene ISD homes were 6 year newer than the 12-month average, but Wylie ISD homes averaged a consistent age of 20 years. This 15.8%, across-the-board decrease in age of rented housing is, in part, responsible for the gain in rent during the sample period.
This overview utilizes NTREIS data on leased properties in Abilene, Texas. This data provides 13 months of data spanning November 2013 to November 2014, allowing the user to look across these months at changes in rental prices, days on market and inventory available town wide, both by school district and by zip code. The percentage changes calculated in this table compare the current month’s statistics to an average of the last 12-months and the data from the same month in the 2013.
Like the gain in rent, November’s 2014 security deposits were $138 more than the previous month, but this is driven by the drop in age of rental units. As in month’s past, the direction of security deposits serves as a measure for the quality of the rental housing stock. The 16.4% increase in deposits along with the 10.5% gain in rent characterize November 2014 as a month where the market offered better quality homes for Abilene renters.
November was slow month for rentals in general with only 73 units leased by Abilene real estate agents. This is down by 30.2% when compared to the 12-month average and 15.2% below what leased 12 months prior. Zip codes 79602 and 79606 were consistent in the rental units leased during this period while other zip codes experienced significant reduction in units leased. The bias introduced by this shift and the overrepresentation of new units that feed the Wylie schools is another factor that explains the increase in rents.
When analyzed on a per square foot basis, Abilene experienced an 8%, town-wide increase in rents. Homes in 79601 and 79606 saw little change in rent per sqft, while 79602, 79603 and 79605 experienced gains. The rent/sqft for both school districts exceeded the prior 12-month average. Abilene ISD saw rents increase by 8.6%, but, again, this is explained by the newer age of units rented during this period.
In November, the duration of time homes remained on the market was 4 days less or a 9.9% decrease in days vacant when compared to the 12-month average. Prorating average rent of $995 at $33.17/day, it is estimated these additional 4 days of rent for the 73 homes leased in November resulted in an extra $9,684.67 in revenue for local landlords. When analyzed by zip code, homes in 79601, 79605 and 79606 leased faster and homes in 79602 and 79603 leased slower than the 12-month average. Wylie ISD homes spent, on average, 21 days on the market while Abilene ISD homes spent 35 days open before leasing.
According to NTREIS, 73 single family homes were leased November 2014 compared to 85 in November 2013 or a 15.2% decline. With 73 units leased at, on average, 76¢/sqft and sized at 1,311 square feet, these leases are estimated to deliver a November 2014 value of $72,734 to the Abilene economy. Considering the coming 12-months and the leases executed during November 2014, these leases potentially account for an $872,811 annual contribution to Abilene’s economy.
If you have questions about this data, its assembly or interpretation, please contact us. We welcome the opportunity to discuss how this data might be employed to help you make informed choices regarding investment property in Abilene.