Town wide, rentals were 7 years older than the average home leased over the last twelve months. An older inventory of homes helps explain the drop in rent, security deposits and rent per square foot for leases inked in March 2017.
This overview utilizes NTREIS data on leased properties in Abilene, Texas. This data provides 13 months of data spanning March 2016 to March 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.
Between February and March 2017, rent per square foot dropped 3₵. Homes leased in February 2017 had an average age of 47 years – 7 years newer than homes leased last month. To get a better sense of the contribution of age to rent per square foot, rent per square foot for the last 365 days was trended against age, revealing each year that passes reduces rent per square foot by .0036. A more straightforward translation of this information: a home loses 1₵ per square foot in rent as its age increases by, roughly, 3 years. Notice the R=squared for this model has a 23.0% ability to explain the variation of this data – this indicates that there are other variables such as schools or quality of the rental that help explain the dispersion of observed rents around the red trend line.
Rent per square foot declined in both school districts and ZIP codes with the exception of homes leased in 79605. Homes in 79605 were slightly older when compared to February 2017, but leased for 3¢ more than the prior month. Homes in 79601 experienced the greatest decline in rent per square foot, leasing 16¢ per square foot less than February 2017. The 9 homes leased in March in 79601 were 25 years older than the previous month.
Average March rents were $1,012 – a $61 decrease against the 12-month average and $56 below February’s performance. March’s average pet deposit of $273 was relatively flat against last month and the 12-month average. 33% of the leased properties for March accept pets, which marks an increase over last month. Security deposits fell below the 12-month average and were $54 below last month’s average deposit.
The 20 homes leased in March in ZIP code 79606 spent the greatest time on the market, leasing in an average 57 days. The 25 homes leased in 79603 leased the fastest in an average 25 days. In March, Wylie ISD homes leased in just under a month at 29 days and Abilene ISD homes leased in 40 days.
According to NTREIS, 101 single-family homes were leased in March 2017. These units leased at, on average, 75₵/square foot and were sized at 1,362 square feet. Consequently, these leases are estimated to deliver a value of $102,245 to the Abilene economy in March 2017. Considering the coming 12 months and the leases executed during March 2017 these leases potentially account for a $1,226,940 annual contribution to Abilene’s economy.