August 2017 rent per square foot remained flat at 77¢ per square foot when compared to rents in August 2016 and the twelve-month average for Abilene area rents. Compared to prior month, rents dropped 5¢ per square foot in August.
This overview utilizes NTREIS data on leased properties in Abilene, Texas. This data provides 13 months of data spanning August 2016 to August 2017, 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 2016.
The overall drop in rents between July and August was mirrored by all Abilene ZIP codes and both school districts. The most significant drop in rent per square foot was realized in 79606 with an 8¢ decline. While Wylie ISD rents outpace Abilene ISD rents by an average 15¢ per square foot, both districts saw a comparable drop in rents between July and August, and matched their 12-month average for rent per square foot.
Inflation has increased by 1.52% since August of 2016. To prevent the erosion of real rent value, Abilene rents needed a 1¢ increase to stay abreast of inflation. Considering this inflationary trend, the average 1,419 square foot home today is actually leasing for $16.38 less per month than one year ago. If your investor’s expectation is a 10% capitalization rate on your investment property, you just lost $1,965.81 in property value.
At $1,086, average August rents fell when compared to July 2017 and were $16 above the 12-month average. August security deposits dropped $99 relative the prior month. On average, a ratio of security deposit to rent is 81%. Average pet deposits were up $32 between July and August and only 26% of the properties leased during August accepted pets, representing a 12-month low for properties that accommodate pets.
Homes in 79601, 79602 and 79603 spent fewer days on the market in August than they did in the previous month. Homes in 79606 spent more time on the market, taking 72 days or almost 2.5 months on average to lease. It would be irresponsible to establish a trend based on this outlier data, but it prepares the user of this data for questions about the impact of recent gains in rental units in the Wylie ISD.
According to NTREIS, 88 single-family homes leased in August 2017. This is up 3 units from the previous month. These units leased at, on average, for 77¢/square foot and measured 1,425 square feet. Consequently, these leases are estimated to deliver a value of $96,208 to the Abilene economy in August 2017. Considering the coming 12 months and leases executed during August 2017, these leases potentially account for a $1,154,505 annual contribution to Abilene’s economy.