September 2014 Abilene Area Rental Data

Abilene area September rents for single-family homes rose slightly when compared to the rents a year ago and the preceding 12-month average, restoring a rising trend in rent seen across the summer.

This average rent increase to $911 for September 2014 translated into a 3% increase when compared to 12 month average and September rents were 5% below September 2013 rents. Homes leased last month were slightly larger by smaller .6%, so when considered on a price/sqft basis, Abilene witnessed a 4.1% increase in per sqft rent to 73¢ per sqft when compared to data from the previous 12 months.

This data utilizes NTREIS data on leased properties in Abilene, Texas. This data provides 13 months of data spanning September 2013 to September 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.

Southside zip codes experienced a slight decline in rents and northside rent/sqft improved. Zip codes 79605 and 79606 saw slight declines when compared to rates one year prior and the 12-month average. 79603, which typically has the weakest rent/sqft, experienced a 14.2% increase to 71¢ compared to the past 12-month average. Similarly, 79602 saw rents climb by 12.4% to 76¢ per square foot. 79601 experienced an 8% increase in rent, but was the only zip code to experience a mixed result when compared to rents from a year ago with a 10.5% decline contrasted to September 2013 rents.

Given the general improvement in rents across the board, both the Abilene ISD and Wylie ISD saw an increase in rents. Over the past 12 months, Wylie ISD rentals outperform Abilene ISD rentals by 17¢. During the summer months, this margin mirrored this mean, but September rentals saw the rent margin between the two districts increase slightly by 10.1% to 19¢.

The more dramatic story of September was the duration of time homes remained on the market waiting occupancy. September rentals realized a 38.2% drop in days on the market when compared with the preceding 12 months of leasing. When analyzed by zip code, all homes experienced less time on the market when contrasted to the previous 12 months. Of these, homes in 79602 and 79606 spent the least amount of time on the market. Wylie ISD homes spent, on average, 16 days on the market while Abilene ISD homes spent 29 days before leasing.

Measures of rents and vacancy should not be construed as Wylie offers the best return when it comes to purchasing a single family rental. Over the prior year, Wylie homes sold, on average, for $212,289 and Abilene ISD homes sold for an average price of $117,436 or 55% of the value of the average Wylie ISD home. Admittedly, Abilene ISD rents are less, but an investor has to recognize that, relative to Abilene ISD returns, the Wylie surcharge is not completely covered by the rents you can charge and the reduced time it takes to acquire a tenant.

According to NTREIS, 84 single family homes were leased September 2014 compared to 122 in September 2013 or a slight 3.4% decline. With 84 units leased at, on average, 73¢/sqft and sized at 1,315 square feet, these leases are estimated to deliver a September 2014 value of $79,281 to the Abilene economy. Considering the coming 12 months and the leases executed during September 2014, these leases potentially account for a $951,372 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.