RALEIGH, NC (WNCN) – The average cost for a studio apartment in Raleigh has now reached $1,680 per month, according to Rent.com, and a one-bedroom apartment is around $1,500. But is there relief in sight?
It depends on.
The rental price has to do with the city’s popularity, and more than 64 people move to Raleigh every day.
But the economy also plays a role.
Experts believe that when home interest rates rise, home prices will fall but rental prices will rise.
It’s already affecting many people living in Raleigh.
“I’d rather just save money,” Margaret Taylor said.
She currently pays the average Raleigh rent of $1,500 a month for her North Hills condo.
But Taylor knows those days are numbered.
“I haven’t gotten my re-up yet, but I know a few people in my building who have, and it raised $200-250,” she said. “As much as I love my building and my neighbors, I just don’t know if I want to pay $1,700 a month. That’s more than most people’s mortgage.”
The price increases are common.
Rents in Raleigh increased 19.7 percent from May 2021 to May 2022, according to Apartments.com.
The national average for rent increases was 15.3 percent.
Taylor looked at other homes to see how those prices compare to hers.
“When I look around, it’s difficult to find places that meet my needs or that are close to my work and within my budget,” Taylor said. “I live alone and really don’t want roommates anymore.”
Taylor thinks there should be some relief for renters.
“It just seems like we’re heading towards a possible recession,” she said. “I think some kind of rent cap, at least temporary, could be effective to ensure people’s livelihoods and the economy aren’t further impacted.”
But in North Carolina, no form of rent control is allowed.
State law states, “No county or city shall make or enforce any ordinance governing the amount of rent to be collected.”
Taylor told CBS 17 that she and her friends realize there’s no easy fix.
“I will be weighing all my options and there are pros and cons to moving. The move itself has fees that people don’t necessarily think about — like security deposit, paying movers, paying the first month’s rent,” she said. “It’s a lot of upfront effort to do, and a lot of people don’t necessarily have those funds up front.”
It also contacted the Triangle Apartment Association to see what their team thought about the rising rents.
Dustin Engelken, director of government affairs for the Triangle Apartment Association, said the group supports existing state law that makes it illegal for any community to conduct rent inspections.
“The biggest disadvantage of rent control is that it picks winners and losers, which distorts the market and hurts many tenants who are forced to pay more to subsidize existing underperforming tenants,” Engelken said in a statement from CBS 17. ” Worse, rent control has led to production declines as developers flee the market. Given that existing high rents are due to supply constraints, a policy that further restricts supply is counterproductive and damaging.”
He also said rental prices will continue to rise as long as there is a housing shortage and people move to the area.
Engelken said the association is working with stakeholders and policymakers to increase production of all types of housing.
“While this is unlikely to provide immediate relief, it is the only sustainable solution to the problem,” he said.
CBS 17 has reached out to Raleigh City Council members and the city manager.
As of airtime, CBS 17 has yet to receive a response.
https://www.cbs17.com/news/local-news/wake-county-news/more-than-a-mortgage-raleigh-rent-prices-keep-increasing-wheres-the-relief/ Raleigh Rental Prices Keep Rising, Where’s the Relief?