As we see continued growth in the Corpus Christi area, we’ve seen more and more interest in rental data as of 2019. With the recent growth of industry, many are making plans to relocate to Corpus Christi and surrounding areas. Whether jobs or access to good schools or entertainment, as people relocate to Corpus Christi, many want to know what the market looks like.
Many are weighing the cost of purchasing a home versus renting. Many factors determine whether renting or buying is right for a resident. Most of the time, the cost is the leading factor in that choice.
We decided to use the Zillow Rent Index. Using the ZRI gives a more precise look at the market accounting for not only one-bedroom apartments but for all housing. The ZRI includes single-family homes, condos, 1 to +5 bedroom, and multi-family housing. Using this index, Zillow can give us estimated rents for the same zip codes for Corpus Christi and surrounding areas.
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 Corpus Christi rental market and explore possible trends in the market.
5 Most Expensive:
78373 - ZRI $1912
This area is most commonly known as Port Aransas. The majority of housing in this area is owned and occupied, leaving fewer options for renters. With a homeownership rate of 60.3%, finding affordable rentals is a challenge for many looking to call Port Aransas home. Additionally, the Port Aransas economy is built around tourism pulling residential listings out of the market with owners opting for short term rentals during high traffic seasons.
78414 - $1711
Known as the “South Side” to many - 78414 is one of the fastest growing and highly sought after locations in the city. This zip code is home to several new schools making the area popular with new residents trying to get children enrolled before the start of the new school year. Additionally, access to main roads, proximity to amenities, and healthcare have made this area popular with renters and homeowners. Higher rents in this area are the result of low supply and high demand.
78418 - $1605
North Padre Island has been one of the hottest areas in the local real estate market. With rising home prices, and rising demand, rentals are hard to find. Those that can be found typically are houses or condos with few options for apartments. Growing demand for real estate on the island is a big factor in the high rents in the zip code.
78413 - $1600
Neighboring 78414, this zip code is home to many of the desired developments on the city’s south side including The Lakes subdivision and the Corpus Christi Country Club. With good schools, access to employers, and established homes this area is a great spot for those looking to buy a home but rental options are somewhat limited.
78374 - $1554
With the rapid growth of the Portland and Ingleside areas, demand for rentals has jumped. With new industries moving to the area, the housing market is working to keep up with the high demand for both residential and rental real estate. As the new industries open and support employment movies to the area rents will remain high in this area.
Percent Change In Median Rent:
Perhaps more a more impactful view of the Corpus Christi market is the percent change in rent from 2018 to 2019. While the majority of high rents seemed to be focused on Padre Island and the Southside, percent change at first glance seemed to be concentrated in the Gregory-Sinton area.
It should be noted that out of the none zip codes with the highest rents made the top 5 zip codes with the greatest percent increase in rent. The most expensive zip code, 78373, only saw an increase of 1%). According to the U.S. Bureau of Labor Statistics 3.5% is the national average for increase meaning that even though these areas are priced higher, the increase was less than the national average. In fact, all of the top 5 rents saw increases below the national average, with 78374 actually showing a drop of about half a percent. This tells us that while rents might be expensive in some areas, overall, they are increasing at or below the national average.
78359 - 15.9%
By far the greatest increase was in the 78359 area code. With the groundbreaking of a $123.5-million Gulf Coast Growth Ventures Monoethylene Glycol (MEG) project in 2018, Gregory has seen a surge in development. As more industry moves to the area, the demand for real estate has also increased. However, the supply is very low. With a total population of only around 2,000 and just under 700 rentable housing units, those moving to the area are facing challenges finding housing.
78390 - 12.7%
Neighboring 78359, Taft has shared in much of the development that the San Patricio County area has seen. Taft has had an economy largely based on agriculture, oil, and gas. With major industrial developments in the Northern Corpus Christi and Nueces Bay areas, the Taft is also facing housing supply issues.
78387 - 8.1%
Another zip code within San Patricio County, 78387 is commonly known as Sinton. With a population of around 10,000, there are more options for housing. With a 15.7% vacancy rate, Sinton’s housing availability sits around the national average. With continued development, new residents will need more options for housing or face rising rents.
78404 - 3.8%
With the Harbor Bridge Project in full swing, developers have turned to North Beach for future plans. As much of the infrastructure of the current Harbor Bridge will be demolished, it will leave room for new development in this area. A historic location in the city with many attractions, developers are working to make this area a tourist destination. However many long-time residents are working to maintain their interests in the area. As more look to North Beach for investment and living options, the limited development has caused rents to rise.
78404 - 3.1%
Another result of the Harbor Bridge Project has been the displacement of residents from the pathway of the new bridge. The city has already begun it’s purchasing of land and residents have started searching for new homes. Many residents are looking to stay within the area to cut down commute times and to avoid big changes in rent. However, as the demand for property rises, prices also rise. Even though this rise seems high,a 3.1% rise is the same as the national average.
Want to know the most expensive areas in Austin? Read our Austin rent blog post here.
Sources:
Average Income and Home Ownership Data - Esri Tapestry Segmentation Dataset
