RIO GRANDE VALLEY, Texas (ValleyCentral) — Communities may be noticing a rise in rent the past few months, and experts are attributing it to the high demands in the housing market.
“Vacancies have gone to practically zero,” said Norma Hinojosa, a Real Estate Broker for Remax Elite who adds right now the business is booming. “Apartment owners maybe had 10-20% vacancies; they’re pretty much non-existent anymore. We have landlords with waiting lists for small, large complexes all across the valley.”
With the rise in interest comes an increase in prices. Hinojosa said this is all a part of the basic supply and demand we are currently seeing.
“Landlords with waiting lists obviously figure that there’s a lot of room to increase rent so we’ve begun to see that across the board 10 even 20% in some apartment complexes,” said Hinojosa.
When it comes to the legality of boosting rent rates, economists share that it differs both based on the state you live in and the city in which you are looking to rent or buy.
“It seems that in the majority of the cities they’re not real strict about that and there’s nothing anybody can do about it because there’s people beating up the prices unintentionally,” said Teo Sepulveda, an Economist at South Texas College.
Sepulveda explained that the rise in rent is actually a normal sign of recovery for our economy. Especially as wages increase, not only is the rental market seeing an increase in prices, but also things like food and gas.
“Since we are rewiring our supply chain the supply cannot rise as fast as possible so a lot of people that are getting higher incomes they’re going out buying stuff they’re beating up prices, why? Because they’re beating up prices on a very limited supply,” said Sepulveda.
With people still trying to get back on their feet following the pandemic, there is worry some might not being able to keep up with price increases.
“It definitely is going to make it hard for a lot of people that are maybe coming off of unemployment or trying to find a job, the whole job market has changed completely,” said Hinojosa.
Experts said unfortunately this is the effect of the pandemic, but as our economy recovers they are hopeful prices will become steady.