Renters in East Texas are mostly in the same boat right now.
Tenants are seeing consistent increases in their rent but unable to move due to issues like a lack of available units in the area or trouble finding a place with cheaper rent.
Others are spending months — some up to a year — just to secure a rental.
A rent report recently reported rent prices in Texas have gone up almost 40% from 2021 to 2022.
In Tyler, statistics from the Greater Tyler Association of Realtors show the average rental price increased from $899 in 2021 to $980 in 2022. On a list of available rentals in Tyler listed on rent.com, there are only three options lower than $1,000 — $745, $929 and $950. Everything else is over $1,000 and some go as high as $3,000.
In Longview, prices have increased by 2.1% over the last month and 15.3% in comparison to the same time last year, according to Apartment List. The city has seen an increase for eight straight months after a decline in November 2021.
Median rent in Longview sits at $937 for a one-bedroom apartment and $1,082 for a two-bedroom apartment, according to Apartment List.
A for rent sign in front of a Dowell Drive home on Wednesday August 24, 2022. (Michael Cavazos/News-Journal Photo)
Michael Cavazos
Why are prices increasing?
John Wampler, chairman and realtor for the Greater Tyler Association of Realtors, said rent increases are not only being seen in East Texas but nationwide. He attributes the increase in rental prices to both the COVID-19 pandemic and the presidential election.
Wampler said the rental market is driven by the real estate market, as people turn their investments into rental properties. With the uncertainty of what the presidential election could bring, owners decided to keep their properties instead of selling them, leading to fewer listings.
Homes for sale became scarce, leading people looking for a home with no option other than to rent. That brought on a complete flooding of the rental market, according to Wampler.
Will prices go down soon?
“It’s a very difficult time because we’re coming from a two-year period where buying a house was very difficult and people were asking for astronomical rates for rentals,” Wampler said. “At the moment, we are trying to find that median zone where rental rates will settle back down to an affordable standpoint for our renters.”
Pate Greening, owner of Reliable Management and member of the board of directors of the Greater Longview Area Apartment Association, believes it will be difficult for people to get out of their rentals if conditions don’t change.
Those who are looking to buy a house in the near future will have a hard time doing it, according to Greening.
“With the increased rental amounts and interest rates climbing, it will be hard to keep people off the rental market, causing less availability for those looking for places,” Greening said.
Another factor that is making property owners to increase their rent is an increase in tax and insurance prices for rentals.
“I think in the last year and a half we’ve had the largest increase I’ve seen in my 30 years living in Longview,” Greening said. “At the moment, I don’t see rental prices climbing, but I also don’t see them declining either.”
Further stats from the GTAR show 2021 had a 14.7% increase in household income in Tyler. Meanwhile, 2022 is just showing a 1.2% increase so far, making it harder for many to afford higher priced rentals.
Renters’ wallets take a hit; others struggle to even find a place
Tyler resident William Coakley has seen his rent go up drastically in the last year, jumping from $890 to $1,173.
Coakley, who will be renewing his lease with the apartment complex despite receiving an almost $300 increase, said the increase is due to fees the complex charges. He was promised last year that his rental rate was going to decrease if he renewed the current lease, but instead he is now facing economic problems as he tries to keep up with the rent.
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“It’s definitely going to hit us in the grocery area,” Coakley said. “We need to have gas, we need to have a phone and other needs that will also be affected as a result of the rent increase.”
Coakley unfortunately doesn’t have much of an option. He would have a hard time finding a place to rent cheaper than what he’s paying now, and there aren’t an abundance of rentals available in Tyler.
Active listings in Tyler in 2022 are currently at 20.5% compared to 54% in 2021.
Amy Thompson, another resident from Tyler, is the mother of two children trying to find a place she can finally call home.
Thompson’s landlord notified her last year that he would sell the property and she needed to find a new place to live. Since then, she has been looking for a place but was unable to find one that met her needs and budget. Issues she has come across are rentals not accepting pets, which she has, or the rent was just exorbitant.
Fortunately, Thompson was given the option from her landlord to stay at her current place without increasing the rent. However, Thompson is still struggling financially, having to take loans from family as she continues to look for another place.
“I don’t know what I’m going to do because with rent being higher, I just can’t afford any place that’s available, or sometimes there are just no places at all,” Thompson said. “All this situation of trying to find a place has been depressing for me and my family.”
The Greater Longview Rental Association has received multiple complaints from residents talking about an increase in rent. Residents have also called to express the financial problems they’re experiencing as a result of an increase in the cost of living, according to Greene.
Greene said the association could help current tenants find a cheaper option, but it would end up costing the same due to moving expenses, deposits, and fees for breaking their lease.
Greene also encourages people to seek help from community organizations like the Salvation Army and local churches.
“I would like for all the Longview residents that are renting to know that if they are in need, they can always reach out to organizations that can help ease their financial situation,” Greening said.
In Tyler, Wampler said those who are struggling with inflated rental prices can always contact the GTAR, which will put them in contact with a Realtor that will focus on protecting their budgets while finding the best fit for them to call home.
“As Realtors we will try to make sure we find a place that fits the client’s needs,” Wampler said. “We will fight for your case and do the best we can to make sure our clients are happy with their property and with their budget.”