December’s rents and security deposits for single-family homes rose when compared to the preceding 12-month rent average but were down from the prior month. In contrast, pet deposits rose compared to the same 12-month period and have risen for the last three months.
This average rent of $931 for December 2014 rose 4% compared to the 12-month average of $895, but fell $64 against last month’s rent of $995 which was the greatest rent realized across 13 months evaluated. This, in part, is determined by age. November 2014’s market leased homes that were 7 years below the 12-month average. In December, homes rented during this period mirrored the average age of homes rented across the last 12 months which tempered average rent prices.
This overview utilizes NTREIS data on leased properties in Abilene, Texas. This data provides 13 months of data spanning December 2013 to December 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 November-to-December rent decrease, December’s 2014 security deposits were $86 less than the previous month. This, too, can be explained by a return to the average in the age of rental units as security deposits serve as a indirect measure of rental stock quality.
In December, 78 units were reported leased by Abilene real estate agents. This is down by 24.8.% when compared to the 12-month average, but 12.2% above the number leased in December from the previous year. 79606 realized a 2-unit increasing leased homes and all other zip codes saw few units leased when compared to their 12-month average.
Square foot evaluation of rents tempers the performance of Abilene area rentals. Town-wide, Abilene rents remained flat when compared to the 12-month average and fell 6¢ from the prior month. When compared to their 12-month average, homes in 79603 and 79605 saw little change in rent per square foot, while 79601, 79602 and 79606 experienced declines. December 2014 rents in the AISD matched their 12-month average, but rents in the Wylie ISD fell.
In December, the duration of time homes remained on the market was 3 days less or a 8.3% decrease in days vacant when compared to the 12-month average. Prorating average rent of $931 at $30.03/day, it is estimated these additional 3 days of rent for the 78 homes leased in December resulted in an extra $7,027.02 in revenue for local landlords. When analyzed by zip code, homes in 79601 leased faster than their 12-month average and this could be driven by mid-semester transitions of college students near Abilene’s north side universities. In December 2013, school district offered no advantage to leasing. Homes leased in the Wylie ISD and Abilene ISD both remained on the market for, roughly, a month.
According to NTREIS, 78 single family homes were leased December 2014 compared to 69 in December 2013. With 78 units leased at, on average, 70¢/sqft and sized at 1,341 square feet, these leases are estimated to deliver a December 2014 value of $73,219 to the Abilene economy. Considering the coming 12-months and the leases executed during December 2014, these leases potentially account for an $878,623 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.