Many residents in the DFW area are struggling financially these days due, in part, to the soaring cost of houses and apartment rentals. NBC DFW stated that “people have reported getting slapped with shocking lease renewals. In most cases, rent is going up by hundreds of dollars if they sign a new lease.”
Long-time Plano resident Courtney Humphries found herself facing that situation. She was advised that the rent on her current home was increasing by an additional $750 per month. “When you don’t have increases in salary, and you have these price increases, it’s really scary. A $750 price increase is not sustainable…To some people, that could be a paycheck,” she stated.
Another consideration for Humphries is how the housing problem will affect her teenage son. She would like to remain in her current rental home because her son attends the high school nearby.
“This isn’t just get up and move, just roll with the punches. There are other things involved, for example, people with children. Naturally, a parent wants their child to stay in the same school district,” she explained to NBC DFW.
According to the Dallas Business Journal, in September of this year, rent had increased by more than 15.5 percent compared to one year ago.
The average monthly rate for a one-bedroom apartment stands at $1,140, and the average monthly price for a two-bedroom is $1,367. The Journal reports that the monthly average of a single-family home rental is around $2,000.
Several factors have fueled the surge in rental rates, but a significant one is that demand for rental housing is outpacing the supply.
Recent census data shows that people are flocking to North Texas in droves, attracted by a thriving economy, the availability of jobs, and a cost-of-living that is comparatively cheaper than other large cities. All the newcomers to the area need a place to live.
Julie Lynch has thirty years of experience in real estate and is stunned by what she is witnessing with the increase these past eighteen months. She is the Associate Director of the Weitzman Institute of Real Estate at UT Dallas’ Naveen Jinda School of Management.
She said, “The demand for apartments is relentless. Dallas is leading the country in the delivery of multi-family units. This last year, we delivered over 36,000 units, and each of the prior five years, we delivered 40,000 units each year. Despite the increase in how many units we’re delivering, the occupancy levels are at an all-time high, at 96.5 percent.”
In addition, rising property taxes, increased upkeep, and repair costs due to supply chain issues, higher utility costs, and inflation, in general, have all contributed to added expenses for the landlords, who, in turn, pass these costs on to their tenants.
The Apartment List, an online marketplace for apartment listing, acknowledged the increasing cost of rentals in the DFW area but still managed to find a silver lining. “[DFW] is still affordable compared to many other US metro areas,” the company reported.