RALEIGH, N.C. (WNCN) — The average cost for a studio apartment in Raleigh has now hit $1,680 per month and a one-bedroom is about $1,500, according to Rent.com. But will there be relief in sight?
The price of rent has to do with the popularity of the city, and more than 64 people move to Raleigh every day.
But the national economy also plays a role.
Experts believe when there’s an increase in interest rates on homes, home prices come down, but rent prices go up.
It’s affecting many people who live in Raleigh already.
“I’d rather just save money,” Margaret Taylor said.
She currently pays what’s now the average Raleigh rent of $1,500 per month for her apartment in North Hills.
But Taylor knows those days are numbered.
“I haven’t gotten my re-up yet, but I know some people in my building who did, and it increased $200-250,” she said. “As much as I love my building and the people who are 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 hikes are common.
According to Apartments.com, Raleigh rents jumped 19.7 percent from May 2021 to May 2022.
The national average of rent increases was 15.3 percent.
Taylor has been looking at other apartment buildings to see how those prices stack up to hers.
“Looking around it’s hard to find places that meet my needs or that are close to work and within my budget,” Taylor said. “I live alone and I really don’t want to have roommates again.”
Taylor thinks there should be some relief for renters.
“It just seems we are edging towards a potential recession,” she said. “I think having some sort of rent cap in place, at least temporarily, could be effective in making sure people’s livelihoods and the economy doesn’t get further disrupted.”
But there is no form of rent control allowed in North Carolina.
State law states “no county or city may enact or enforce any resolution which regulates the amount of rent to be charged.”
Taylor told CBS 17 that she and her friends are realizing there is no simple solution.
“I’m going to weigh out all of my options, and there are pros and cons to moving. Moving in it of itself does have fees that people don’t necessarily think about — like security deposit, paying movers, paying first-month rent,” she said. “That is a big expense to incur all up front, and a lot of people don’t necessarily have those funds up front at their disposal.”
It also contacted the Triangle Apartment Association to check in on what their team thought about the rising rents.
Dustin Engelken, government affairs director for the Triangle Apartment Association, said the group supports the existing state law that makes it illegal for any municipality to undertake rent control.
“The biggest downside of rent control is that it picks winners and losers that distort the market and hurt many renters, who are forced to pay more to subsidize existing under-market renters,” Engelken said in a statement CBS 17. “Worse yet, rent control has resulted in drops in production as developers flee the market. Given that existing high rents are due to supply shortages, undertaking policy that further hurts supply is counterproductive and harmful.”
He also said rent prices will continue to rise as long as there is a shortage of units and people keep moving to the area.
Engelken said the Association is working with stakeholders and policymakers to ramp up the production of all types of housing.
“While this won’t likely provide immediate relief, it is the only sustainable solution to the issue,” he said.
CBS 17 did reach out to Raleigh City Councilmembers and the City Manager.
As of airtime, CBS 17 has not heard back.