Market experts: Millennials feed the housing demand, apartments see fewer vacancies
Posted: 6/9/2021 / 9:10 PM CDTUpdated: 6/9/2021 / 9:10 p.m. CDT
RIO GRANDE VALLEY, Texas (KVEO) – Market experts say the real estate crisis is affecting not only those looking to buy or build houses, but also affecting rental properties such as apartment complexes.
In the Rio Grande Valley, Norma Hinojosa, owner and broker of Remax Elite in South Texas, says young families are growing and looking for entry-level homes.
“Builders are no longer building entry-level houses, it’s so expensive to build and land is so expensive that housing is the only option for so many people,” said Hinojosa.
Real estate agent Edson Carbajal says he helps clients find rental apartments when he can – but it hasn’t been easy lately.
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“Anything under $ 1,300 a month is renting out pretty quickly – I’ve seen them stay in the market for maybe a day or two,” says Carbajal.
Hinojosa, who has been in the real estate sector for over a decade, says the housing market has been cycling but has been interrupted due to the pandemic.
For example, the moratorium on evictions played a part in this.
“The stop of the evictions kind of interrupted this cycle,” said Hinojosa.
For Carbajal, the number of calls it receives outweighs what is available.
“It’s a little frustrating because we feel like we can’t do enough for our customers and we have more renters and buyers than we have inventory available,” said Carbajal.
Another piece of the puzzle is the rising prices of wood, which is causing contractors and home builders to struggle with completing new properties.
Timber prices are rising due to increasing demand in the Rio Grande Valley
“It’s more expensive to build right now and that means that a lot of people who would buy or build are holding back and continuing to rent,” said Carbajal.
However, Hinojosa says the demand will persist as the homebuyer market grows in the Millennial generation.
“The sheer size of the millennial generation is now at an age where they are now starting to buy and rent houses,” said Hinojosa. “You’re twice the size of the previous generation, right. You are now in your late 20s and early 30s and are starting to have a need for housing.
Hinojosa expects this trend to continue for the next five or ten years.