RIO GRANDE VALLEY, Texas (KVEO) — Market experts say the housing crisis is not only affecting those looking to buy or build homes, but it is also having an impact on lease properties, like apartment complexes.
In the Rio Grande Valley, Norma Hinojosa, owner-broker of Remax Elite of South Texas, says young families are growing and looking for entry-level homes.
“Builders don’t build entry-level houses anymore it’s so expensive to build and land is so expensive, so apartments is sort of for so many people is sort of the only option,” said Hinojosa.
Real estate agent, Edson Carbajal, says he helps clients find rentals when he can–but lately it has not been easy.
“Anything under 1300 dollars a month rents out pretty quick–I’ve seen them stay on the market for maybe one or two days,” says Carbajal.
Hinojosa who has been in real estate for over ten years says that the housing market has a cycle, but it has been interrupted due to the pandemic.
For example, the moratorium on evictions has some part in it.
“Because of the halt in evictions it’s sort of disrupted that cycle,” said Hinojosa.
For Carbajal, the amount of calls he gets is outweighing what is available.
“It’s a little frustrating because we feel like there’s not enough we can do for clients and we have more tenants, more buyers than we have inventory available,” said Carbajal.
Another piece of the puzzle is lumber prices soaring, causing contractors and home builders to struggle to finish new properties.
“It’s more expensive to build at the moment and that causes a lot of people who would be buying or building to hold off on that and continue renting,” said Carbajal.
However, Hinojosa says that the demand is here to stay because the market for home buyers is growing in the millennials’ generation.
“The sheer size of the millennial generation that is now at an age where they’re now beginning to buy and rent homes,” said Hinojosa. “They’re double in size of the previous generation, right. They’re now in their late 20’s and early 30’s and they’re beginning to have a housing need.”
Hinojosa says she foresees that this trend will continue for the next five or ten years.