How’s the Katy Rental Market?

One of my listings just wouldn’t sell but, as soon as we listed it for rent, it had a lease contract in five days! It rented for $3200 per-month.

The home is pictured to the left. As you can see, it is gorgeous! It didn’t sell because it was for sale at $410,000, and, although it was listed at fair market value, this has been a slow price point in this semi-distressed market. High end rentals are a different story.

In fact, rentals at all prices do not been stay on the market for long. Yes, the rental market is fast and furious in some areas of Katy. This is particularly true on the southside of  Interstate 10 but north side property is ahead of the historic curve for rentals, too.

Let’s look in depth at two of these southside markets.  First, let’s discuss West Memorial where rental prices range from $1000 monthly to $1400 per-month. There have been 19 rentals in the last six-months with one pending. Only 4 houses are available. The average days-on-the-market is a mere 15. The average rental price is $1185. Leases typically run for 12-months.

Many West Memorial rentals are quite often driven by the desire of residents north-of-I10 to put their children in southside schools.

The most inquiries I receive are about rentals in Cinco. While there are more properties available to lease than in West Memorial, there have also been more rentals. Most leases run for 12-months.

The lowest Cinco Ranch rental was on Somerset Park Lane; it rented for $1200 per-month. The home is featured to the left.

The reason for the low leasing price is that it backs directly to FM1093. (The owners found it impossible to sell, a good lesson in “location, location, location”, and put it on the market as a lease property.)

In Cinco Ranch, the average rental price of property, already rented, is $2112 per-month. There are currently 260 properties on-the-market with 125 renting in the last six months. The average days-on-the-market before a rental contract is 38.

The most expensive Cinco Ranch rental property was located on Luke Ridge, pictured left. It rented for $3875 per-month. It was on the market for only 28 days.

Southside rentals are being driven by several factors including the desire to get children into superior schools. Other renters are relocating families; they are hesitant to purchase until they acquaint themselves with the area.

Tragically, we are seeing more families that have lost their homes to foreclosure becoming part of the rental market. They want to stay in the area and search for homes that rent for less than their mortgage.