Abbington, MA: Rental Market Review: 2022 vs. 2021

As we closed out 2022, the Abington, MA area's real estate market saw some notable changes in the residential rental sector. In this in-depth analysis, we will compare the key metrics of the Abington real estate market in 2021 and 2022 to provide a comprehensive understanding of market performance, trends, and potential opportunities for investors and renters alike.

Residential Rental Market Performance:

Listing Inventory on December 31:

At the end of 2022, the listing inventory in Abington had decreased by 50%, from 4 units in 2021 to just 2 units in 2022. This significant reduction in available rental properties could lead to increased competition among potential renters and higher rental prices in the area.

Average Days on Market:

The average days on market for rental properties in Abington increased by 90.48% from 21 days in 2021 to 40 days in 2022. This indicates that rental properties were taking longer to rent out, which could be due to a variety of factors, including increased rental prices or changes in renter preferences.

Average List Price and Price per Square Foot:

In 2022, the average list price for rental properties in Abington jumped by 80.07%, from $1,693.75 in 2021 to $3,050.00 in 2022. Similarly, the average list price per square foot increased by 25.94%, from $2.12 in 2021 to $2.67 in 2022. These substantial increases in rental prices reflect the growing demand for rental properties in the area and the reduced inventory available.

Approximate Absorption Rate and Months Supply of Inventory:

The absorption rate, which measures the rate at which available properties are being rented out, increased by a staggering 107.68% from 54.17% in 2021 to 112.50% in 2022. This indicates a very active rental market with properties being rented out at a faster pace than in the previous year.

In contrast, the months' supply of inventory, which measures how long it would take to rent out all available properties at the current absorption rate, decreased by 51.89%, from 1.85 months in 2021 to 0.89 months in 2022. This decline in inventory supply further highlights the increased demand for rental properties in Abington and the potential for upward pressure on rental prices.

Year-to-Date Metrics:

Listings, Original List Prices, and Price per Square Foot:

The number of rental properties listed in Abington increased by 16.67% year-to-date (YTD), from 30 units in 2021 to 35 units in 2022. The average original list price also increased by 17.13%, from $1,830.50 in 2021 to $2,144.00 in 2022. The average original list price per square foot saw an increase of 18.62%, from $1.88 in 2021 to $2.23 in 2022.

Properties Going Pending:

The number of rental properties that went pending increased by 25%, from 24 units in 2021 to 30 units in 2022. The average list price of these properties increased by 6.37%, from $1,824.58 in 2021 to $1,940.83 in 2022, while the average list price per square foot increased by 21.74%, from $1.84 in 2021 to $2.24 in 2022. The average days to offer decreased by 8%, from 25 days in 2021 to 23 days in 2022, indicating that rental properties were receiving offers slightly faster than in the previous year.

Listed & Price Changed Properties:

The number of rental properties that experienced price changes increased by 75%, from 4 units in 2021 to 7 units in 2022. The average original list price for these properties increased by 22.66%, from $1,910.00 in 2021 to $2,342.86 in 2022. The average original list price per square foot also increased by 14.93%, from $2.01 in 2021 to $2.31 in 2022.

Sold Properties:

The number of rental properties sold increased slightly by 3.85%, from 26 units in 2021 to 27 units in 2022. The average days on market for sold properties decreased by 13.79%, from 29 days in 2021 to 25 days in 2022, while the average days to offer also decreased by 8%, from 25 days in 2021 to 23 days in 2022.

The average sale price for sold properties increased by 5.81%, from $1,843.85 in 2021 to $1,950.89 in 2022. The average sale price per square foot experienced an increase of 19.46%, from $1.85 in 2021 to $2.21 in 2022. The average list price for sold properties increased by 5.59%, from $1,847.69 in 2021 to $1,950.93 in 2022, and the average list price per square foot increased by 19.46%, from $1.85 in 2021 to $2.21 in 2022.

The average original list price for sold properties increased by 5.35%, from $1,855.38 in 2021 to $1,954.63 in 2022. The average original list price per square foot increased by 19.35%, from $1.86 in 2021 to $2.22 in 2022. The average sale price as a percentage of the list price increased slightly by 0.22%, from 99.85% in 2021 to 100.07% in 2022, indicating that properties were selling very close to their listed prices. The average sale price as a percentage of the original list price also increased by 0.47%, from 99.41% in 2021 to 99.88% in 2022.

12-Month Activity as of December 31:

The total number of rental properties listed in Abington increased by 16.67%, from 30 units in 2021 to 35 units in 2022. The number of rental properties that experienced price changes also increased by 75%, from 4 units in 2021 to 7 units in 2022. The number of rental properties that went pending increased by 25%, from 24 units in 2021 to 30 units in 2022. The number of rental properties sold increased marginally by 3.85%, from 26 units in 2021 to 27 units in 2022.

Conclusion:

The Abington, MA area residential rental market experienced significant growth and increased demand in 2022, as evidenced by the higher rental prices, increased absorption rate, and decreased inventory supply. These trends suggest that Abington is becoming a more competitive market for potential renters, leading to higher rental prices and a potential opportunity for real estate investors.

As we move into 2023, it will be essential to monitor these trends closely to assess whether the increased demand for rental properties in Abington continues, and if the inventory levels can keep up with the growing interest from potential renters. Investors considering entering the Abington rental market should carefully analyze the area's rental property performance and identify potential opportunities that align with their investment goals.

For renters, the current market conditions in Abington suggest that acting quickly and being prepared to pay higher rental prices may be necessary to secure a desirable property. It's crucial to stay informed about the latest market trends, maintain a competitive edge by being ready with required documentation, and work closely with a knowledgeable real estate agent to navigate the competitive rental landscape in Abington.

In summary, the Abington, MA area real estate market experienced notable changes in the residential rental sector in 2022 compared to 2021. Rental prices increased substantially, while inventory decreased, leading to a more competitive market for renters and potential opportunities for investors. Monitoring these trends and staying informed about the local real estate market will be essential for both renters and investors moving forward in 2023.

Disclaimer: Please note that the information provided in this article has been gathered from third parties, including seller and public records. Nexus Real Estate Group and its subscribers disclaim all representations and warranties as to the accuracy of the information. While every effort has been made to ensure the reliability of the data presented, we cannot guarantee its accuracy or completeness. We encourage readers to conduct their own research and consult with a professional before making any decisions based on the information provided in this article.