Pushed out by high housing prices, potential buyers become renters.
We hear a lot about the exploding housing costs in Houston - and now rental prices are going up as well. The continuous rising prices of area homes have pushed out potential buyers. John Boriack with Texas Apartment Association and Veritas Equity Management explains. "You've got people who would have bought a house; can't find one; frustrated with the market so they have chosen to rent. That's putting more pressure on the demand for rentals." Increased demand for rentals brings changes to prices.
Boriack says, "Rents have gone up and will continue to go up. According to Apartment Data Services rental prices have gone up 12.8% in the last 12 months. "Even with low interest rates, not everyone who wants to buy a home can afford their inflated prices. In the Houston area, potential home buyers are giving up and finding a new place to rent. Younger professionals are especially interested in up-to-date amenities. Boriack says our area has lots of rental options. "The great thing about Houston is that you can always find an affordable place to live in your price range somewhere. Even cities in Texas like Austin --- you can hardly find anything to rent...they are prohibitively expensive."