The average rent in Houston is climbing day by day, creating financial problems for residents. As such, locals are having a hard time finding affordable homes. Why is the rent so high? Let’s take a look:There is space, but is it limited?
Houston has acres of land and there are plenty of homes that can be rented out. However, people only want to live in a specific part of the city which leads to a rise in the rent in those areas.
Moreover, the entire region is in great demand these days. The job market is booming and many people are relocating into the city. Obviously, they need a roof over their heads no matter what the price. This is another reason that rent has gone up.
Rent control can increase your rent
The average rent in Houston is about $3,000, but just two years back people were not even paying half of this amount. The prime reason is that there are rent controlled homes in Houston. Unfortunately, the tenants residing in them do not ever think of leaving because they get to avail the best rental rates in town. Obviously, the landlords need to compensate for this, and so they increase the rent in all other areas where there are no policies that enforce a tight rent structure.
If you look at the stats, you will see that almost 35% of people who live in rent controlled areas have been residing there for more than 15 years. As such, the new people never get to avail these deals because there are usually no vacant houses in these areas.
Tax amounts have increased
Tax amounts have drastically increased and owners find it hard to pay them off. Consequently, the tenants get a hit when the rent amount is increased due to increased taxes. This is done so that owners do not suffer from any sort of financial burden.
Construction is becoming expensive
Compared to the rest of the country, construction costs are almost 19% more in Houston, which obviously means higher rent. The wages of construction workers are high, the materials are expensive, and inspection has to be conducted by the authorities on a regular basis for which a fee is charged. All these add up to an increase in construction costs, increasing both the home prices and the rental rates.
