Rent rates are increasing, experts say it’s part of our economic recovery

RIO GRANDE VALLEY, Texas (ValleyCentral) – Communities have seen rents have increased in recent months, and experts attribute this to the high demands on the housing market.

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“Vacancies are practically zero,” said Norma Hinojosa, a real estate agent at Remax Elite, who adds that business is booming right now. “Homeowners had maybe 10-20% vacancy; they are as good as nonexistent. We have landlords with waiting lists for small and large facilities all over the valley. “

As interest rates rise, so do prices. Hinojosa said this is all part of the basic supply and demand we are currently seeing.

“Landlords with waiting lists obviously assume that there is a lot of room for rent increases, so we see that in some apartment complexes down the line 10 is even 20%,” said Hinojosa.

When it comes to the legality of the rent increase, economists share that it differs based on both the state you live in and the city in which you plan to rent or buy.

“It seems that in most cities they are not really strict and no one can do anything about it because people are accidentally beating up prices,” said Teo Sepulveda, an economist at South Texas College.

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Sepulveda stated that the rise in rents is actually a normal sign of the recovery in our economy. Especially as wages rise, not only do prices rise on the rental market, but things like groceries and gasoline also rise.

“Since we’re rewiring our supply chain, supply can’t go up as fast as possible, so a lot of higher-income people go out and buy things and hit the prices, why?” Because they drive up prices for a very limited supply, ”said Sepulveda.

With people still trying to get back on their feet after the pandemic, there is concern that some may not be able to keep up with price hikes.

“It will definitely make it difficult for a lot of people who might be coming out of unemployment or trying to find a job, the whole job market has changed completely,” said Hinojosa.

Experts said this was unfortunately the impact of the pandemic, but when our economy recovers they hope prices will stabilize.

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