Apartment rates continue to rise
POSTED: Friday, April 4, 2014 - 6:06pm
UPDATED: Saturday, April 5, 2014 - 3:06pm
(KETK) - Tyler, Tx — It is a good time to be a landlord as apartment rents in the United States continue to climb. Due to high demand, the rate of an apartment is expected to rise for the fifth straight year, something good for the market, owners and investors, but not the tenants.
"We are seeing it in Tyler," said President and CEO of Tyler Economic Development. "And it's interesting because we've added a lot of product in the apartment industry over the years and the fact that we've added more inventory and prices are going up tells me the demand is being created by the economy."
The trend began in 2007. As people started to lose their homes in foreclosures, they were forced into apartments.
"When you go to buy a house and you have a foreclosure on your record, it's not going to happen," said Kristie Rehders who works at NWP Management.
But now, you are seeing young up and comers renting because there is less commitment and retirees who do not need the space.
"We have a lot of retired people that want to downsize and they don't want to have the big yard anymore or the responsibility," Rehders said.
This demand allows landlords to hike their prices, something many tenants do not want to hear, especially the 50 percent who give more than one-third of their pay to rent.
"Groceries are going up, rents going up, gas is going up," Rehders said. "But your income is staying the same so it's a very tough situation."
For a list of accredited complexes in East Texas visit www.bbb.org.