Wellington, FL Rents to Grow as Community Expands

Wellington, FL has seen tremendous growth in the past 50+ years. In 1960, the population was 4,622 and the estimated population in 2015 was 62,560. This population growth includes families with children under the age of 18, with children making up over a quarter of the population in 2010.

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Map of the Wellington, FL apartment rental market area.

Aside from the availability of housing and good schools, Wellington looks to see strong job growth in the coming future. Currently they are seeing job growth at 3.94%, but that should jump up to 43.7% over the next ten years.

It has been reported that heavy investment in the South Florida area is helping to drive demand for apartment complexes. This point is further highlighted in an article explaining the recent sale of the Solara at Wellington Apartments:

More than $1.2 billion was spent on the acquisition of apartment complexes throughout the tri-county area during 2015, with demand being driven by the belief that rental rates will continue seeing steady growth.

For many younger residents in South Florida, the lack of affordable homes to purchase has kept them in the apartment rental market. As population growth continues to a steady clip here, demand for rental housing will increase. As demand goes up, rental prices should continue to increase on existing apartment rental units in the area.

wellington-fl-apartment-rent-trendsIn the case of Wellington, more developments should continue to take place with the presence of good schools and cheaper land due to its inland location. The presence of increased demand can be seen in the increased rents for apartments within Wellington. In the chart showing apartment rental trends in Wellington, rental rates have gone up year over year. Higher end rates should be noted in particular because of their dramatic spike starting in July of 2015.

 

Using RentHub.com as a resource, you can also see what the apartment rental market summary is for the past 60 days in Wellington.wellington-fl-average-apartment-rents

 

How are Oil Prices Affecting Apartment Rents?

An Update on Three Oil Towns

In January of this year, we at RentHub wanted to see how apartment rents were trending in three distinct rental markets where the local economy is driven by the oil industry. At the time, median rents in each case were declining substantially. The median rents in these three markets have continued to decline, while oil prices have somewhat stabilized. Crude oil prices are still nowhere near the $100+ per barrel during the peak, but the floor is not falling out from under the industry as it seemed to be doing when we last addressed this topic in January.

The Current Situation

As you can see by the chart, oil prices have rebounded from January when they were below $30 a barrel. As of October 25, U.S. crude oil futures were trading at $49.35. This is roughly a $20 increase since that time, but nowhere near the days where the price per barrel was over $100.

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source: WSJ.com

The U.S. oil industry is proceeding on a more careful footing after the price collapse that occurred. Global production levels are in flux, along with demand for the type of crude oil the U.S. produces being in low demand.

Current Rental Trends

As stated, apartment rental trends for these three markets have continued to decline. There are a few factors that this may be attributed to this decline. Below are the housing rental trends for each:

Odessa, TX

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Midland, TX

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Williston, ND

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Going Forward

Uncertainty in the oil business will continue to translate to uncertainty in the housing sector in each of these oil towns. Williston, ND has seen greater declines in rents due to the dominance the oil boom had on that local market. Odessa and Midland, both have had a longer history of oil development. The oil boom that occurred in Williston brought on temporary housing. Because of the rapid nature of apartment development that was needed to meet the demand during that boom, more apartment rentals have come online while the local government works to remove the temporary housing.

New Development Continues

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Housing development continues to take place in Williston, ND.                 photo source: eenews.net

These boom markets are still working towards stabilizing. Though the local economies are now constricting, to an extent, since the days of $100+ per barrel, development, and specifically housing development continues to take place. Instead of only reacting to the rapid influx of workers, each market is preparing for longer term solutions to housing oil workers and the job sectors that help to serve those people.

In April of 2016, The Odessa Housing Finance Corp. was working to develop 181 units of rental housing.

Tax credits units in the apartment buildings would serve people who make $23,000 to $36,540 a year… About 63% of the renter population earns less than $40,000 per year in a rental market where less than 10% of rental housing is affordably priced according to the (Odessa Housing Finance Corp.)

In Midland it is reported that development of new commercial and residential uses is still set to take place, despite the drop in oil prices.

Several oil companies have recently built office complexes in the area, and drilling continues, albeit at a more sluggish pace. The city plans to build a new convention center, and construction of a municipal courthouse is underway. Several more hotels, apartment complexes and eateries are expected to open this year

In that same report, the driving force behind this development in Midland, and it can be applied to both Odessa and Williston, is because:

The prolonged bustle is partly because the city is playing catch-up, recovering from a period of frenetic growth during the recent boom, when housing was impossible to find…

 

Top 10 Trending Neighborhoods in Major US Cities

It’s summertime in the city which means rents are high, workplace productivity is low, and all inhibitions are out the window. Not only is it prime vacation season, it’s also peak time for finding a new place to live. Apartment rates have been known to increase anywhere between 15% and 20% beginning April and ending around October. So we’ve decided to use our real-time rental data and Heat Map to pull together a summary of what neighborhoods are trending and and who’s flocking to them. While a few of the established submarkets are just now seeing a spike in listings, other’s are outliers experiencing a surge in new multifamily developments and gentrifying demographics.

The following summary was generated by RentHub’s real-time rent analytics in conjunction with census reporter data.

10. 

Current Rent Median: $2,650
Last Year Median: $2,450
Increase: 8%
Rent Drivers: Parking, Gym, Secured Entry
Median Age/Income: 30yrs/$40,013
Avg. % of Income Spent on Rent: 79%

9.

Current Rent Median: $1,700
Last Year Median: $1,571
Increase: 8%
Rent Drivers: Laundry, Garage, Granite
Median Age/Income: 35 yrs/$77,512
Avg. % of Income Spent on Rent: 26%

8.

Current Rent Median: $2,400
Last Year Median: $2,200
Increase: 10%
Rent Drivers: Secure Entry, Stainless, Lounge
Median Age/Income: 33 yrs/$50,336
Avg. % of Income Spent on Rent: 57%

7.

Current Rent Median: $2,650
Last Year Median: $2,385
Increase: 11%
Rent Drivers: Stainless, Secure Entry, Gym
Median Age/Income: 37 yrs/$61,000
Avg. % of Income Spent on Rent: 52%

6.

Current Rent Median: $3,262
Last Year Median: $2,895
Increase: 13%
Rent Drivers: Garage, Granite, Pool
Median Age/Income: 37 yrs/$55,959
Avg. % of Income Spent on Rent: 70%