DOTHAN, Ala. (WDHN) — According to rent.com, in America, prices for a single bedroom apartment for rent are up more than 10 and a half percent, with two-bedroom apartments being up almost 12 percent in the last year alone.
The real estate market hasn’t seen price increases like this in decades.
“We are in the middle of, nationwide, the highest level of inflation since the early ’80s and we are seeing nationwide rent increases,” President and Owner of Property Champions Real Estate, Stephen Holland said.
With the coronavirus pandemic and the “CARES” act, landlords lost out on profits and this current increase in prices could be an attempt to recoup some of those losses.
“Those restrictions being lifted, those landlords being able to move back into those properties,” Holland said. “Trying to make some money off those properties, those increases and try to recoup some of those losses is driving increases in rent.”
But, according to Holland, this might not be intentional to gain a better bottom line, but demand is high now and the supply just isn’t where it should be, which in turn drives up prices, naturally.
“The increased demand is there and with the low inventory, that means rental prices are going to increase as well,” said Holand. “And it not just on the landlords, it’s just a simple consequence of supply and demand.”
If you are renting, the price can increase at any time, for any reason, but the people at Property Champions say there is no better time to buy a house and get locked into those low mortgage rates.
“If you’re looking for a place to rent, and you can’t find it, the interest rates, mortgage interest rates are still in historic lows,” said Holland. “They are still in the threes. So if you want to lock in a low monthly payment for the next thirty years, check out buying a home!”