Single-family rental prices in Denton County were basically flat during December. As home prices have continued to creep higher in the area, average rents for single-family homes in Denton County are not as strong. Prospective renters are likely getting stretched with home price inflation exceeding average wage growth. This would help to explain why the average price of home rented in Denton County in December 2017 dropped about 2 percent compared to December 2016.
The average price per square foot for a rental in Denton County did rise slightly, but the average size of homes rented last month decreased by almost a 100 square foot. Apparently renters were willing to give up a little square footage to avoid busting their budgets.
Apartment asking rents in the DFW area were higher to start the year, with some markets faring better than others. January 2018 numbers from a national rent report showed that the median asking price of a 1-bedroom apartment in Dallas Texas was $1290, roughly 1 percent higher year-over year. The median price of a 2-bedroom apartment was listed at $1720, also up about 1 percent from the previous year.
Here are some other notable year-over-year comparisons of January asking rents according the report.
- Irving 1-bedroom $1170 up 10.4%, 2-bedroom $1410 up 8.5%
- Plano 1-bedroom $1160 up 7.4%, 2-bedroom $1500 up 1.5%
- Fort Worth 1-bedroom $990 up 5.3%, 2-bedroom $1210 up 9.0%
- Arlington 1-bedroom $720 up 4.3%, 2-bedroom $950 up 5.6%
With DFW construction still going full speed ahead, there are plenty of apartment developments offering move-in specials and other incentives to entice prospective renters. This is something not factored into the asking rents you see noted above. You can ask the neighbors to the south in Houston what happens to the multi-family housing sector when irrational exuberance meats an economic slowdown.
For the time being, Denton Count real estate prices are still holding strong with home prices pushing higher in the face of stagnating rents. The outlook going forward is going to depend heavily on the actions of the Federal Reserve. They inflated asset prices across the board, and it will be interesting to see how the market responds in 2018 if they start taking away the punch bowl.