RALEIGH, N.C. (WNCN) – The Triangle’s rental market is booming. But once you find the right rental, what happens when it’s time to renew your lease?
Renters told CBS 17 their monthly rates are soaring just to stay in the same place.
Sam Rivers has two bedrooms, 1.5 bathrooms, and a rent that’s increasing by more than $400 a month.
“I initially was upset for obvious reasons, ’cause, I mean, if you’re gonna up anyone’s rent more than $400, at least be doing something either to the complex or the building, some kind of renovation or something. But just to up it for $400 without any real reasoning it made no sense,” Rivers said.
He said currently he pays $953 for his Raleigh townhome, but just received a letter saying the new lease is $1,399 a month. A more than a 45 percent hike.
Rivers said in previous years at other rental properties, he was used to seeing increases of $40 to $60 a month. He’s staying put for now, but that could change.
“To have an increase of that much and think, ‘Oh it’s gonna be OK to just continue to stay here,’ and then God knows what the increase will be a year from now,” he said.
Rivers is not alone.
Amanda and Drew Ratliff said their single-family rental near downtown Cary went from $1,000 to $1,400 two months ago. Drew said he took on a second job as a food delivery driver. The couple doesn’t want to leave the area they’ve lived in for about a decade, but said they might not have a choice.
“Forty percent was a kind of drastic increase. It was unexpected for sure,” Drew said.
“We certainly don’t make enough money to pay for it,” Amanda added.
Mike Meyer is an owner of Block & Associates Realty.
“That historically is very rare, right, rental prices going up by 20 percent or 30 percent is unheard of,” said Meyer.
He said the large hikes are more common for multi-family homes and apartments than single-family rentals.
“Housing trends, to some degree, follow what inflation is going on. So the higher inflation, you’re gonna see rents go along with that,” Meyer said.
He said inflation makes things like repairs more expensive, too. He said that’s combined with high demand. Another factor is higher home prices. Meyer said that leads to more people being priced out of buying, which means more demand for rentals.
Amanda Ratliff said newer, more expensive homes just went up around her rental. She wishes there could be a gradual rent increase.
“I understand that his property rates have gone up, but it still don’t make it any, I can’t afford it any easier,” she said.