As we see continued growth in the Temple/Belton area, we’ve seen more and more interest in rental data as of mid-2019. Consumers have seen growth and are now making plans to relocate or invest in the area. Whether that’s jobs or access other areas like Waco and Austin, the Temple/Belton area is growing, and consumers want to know the condition of the market.
An examination of the market is valuable for those who are relocating or for those weighing the cost of purchasing a home versus renting.
For 2019 we decided to use the Zillow Rent Index. This gave us a more precise look at the market accounting for not only one-bedroom apartments but for all housing. Including, single-family homes, condos, 1 to +5 bedroom, and multi-family housing. The goal of using an estimate versus homes on the market is “to give consumers insight into rental price trends in a way that is not biased by the mix of homes currently for rent.”
It is often hard for consumers to make informed decisions solely based on available housing. By using this index, we hope to paint a more accurate picture of the 2019 Temple/Belton rental market and explore possible trends in the market.
The Most Expensive:
76571 - ZRI $1520
This zip code incorporates the area known as Salado. Known for it’s unique shops, art scene, and yearly festivals, this area has grown in recent years yet still has a relatively small population. With a population of around 2,000 during the 2010 census and a homeownership rate of 85.9%, there is a much smaller pool of available rentals in this area leading to higher rents.
76548 - ZRI $1260
76548 includes parts of the city of Killeen parts of Harker Heights. These are the first and third largest cities in the “Killeen – Temple – Fort Hood metropolitan area” respectively. With a population of just under 30,000, and a homeownership rate one percent below the national average, other factors might be contributing to higher rents. Perhaps one of the most significant differences in this area is the economic influence of nearby Fort Hood. With a high influx of soldiers in need of transitional housing, the demand for rentals is high in the area.
76502 - ZRI $1257
This zip code covers the area between Temple and Belton. 76502 has a homeownership rate of 66.6% (only 3% above the national average) and a vacancy rate of 9.3% (3% below the national average). Contributing factors to higher rents could be due in part to a high number of colleges and universities in the area. Home to Texas A&M College of Medicine, University of Mary Hardin–Baylor, and Texas A&M University–Central Texas 76502 has a large student population. Additionally, Baylor University and Southwestern University are both within 30 minutes of 76502. With it’s location off of Interstate 35, this area’s access makes it highly sought after by those looking to call the area home while attending one of the nearby institutions.
Percent Change In Median Rent:
Perhaps more a more impactful view of the changing Temple/Belton market is the percent change in rent from 2018 to 2019. The majority of high rents seemed to be focused in the central region of the market. Percent change seemed to be concentrated in the Fort Hood area.
The top 3 zip codes with the highest rents, were not the zip codes with the greatest percent increase in rent. The most expensive zip code, 76542, only saw an increase of 5%. According to the U.S. Bureau of Labor Statistics 3.5% is the national average for rent increase.
Surrounding a large part of Fort Hood proper, 76542 is just south of Killeen. With a rise in rent of 5% this change isn’t far from the national average of 3.5%. Rates in this area rose similarly to nearby areas, such as 76549 and 76541. This area has experienced an increase in home construction and in-home value compared to 2018. The increase of 4.1% is a change for the area that had seen home prices only rise with inflation since 2000 (according to those familiar with the market).
Located on the west side of Temple, 76504 is home to what Zillow has labeled a “Very Hot” market. With an 8.1% increase in value and a projected rise of 3.0% next year, this has become a seller’s market. Rents have increased by 5% in 2019 compared to 2018. It is possible that as more homes are sold, the inventory for rent has begun to shrink.
Increasing by 4%, this area has increased within 1% of the national average. This zip code has also been labeled as a “Very Hot” market. With a 10.6% increase in value and a projected rise of 6.1% next year, this has become an extreme seller’s market. It is possible that as more homes are sold, the inventory for rent has begun to shrink, resulting in the increase in rents compared to other zip codes.