Rent prices continue to increase

CHATTANOOGA, Tennessee (WDEF)-“Been a very interesting year, to say the least for both housing prices and rent prices,” said Carberry.

Chattanooga’s rent cost is lower than the national average but still higher than the state average.

“The rate of increase you’re seeing for a two-bedroom apartment, which is the most popular unit size right now, is below the national average increase. Nationally we’re seeing about a 20% increase for a two-bedroom. A two-bedroom in Chattanooga it’s only, and I say only, going up 14% but that is still a significant increase,” said Carberry.

Rent prices are skyrocketing across the country as there is a shortage in housing being built since the 2008 financial crisis.

“Homebuilders and developers have not been building at a pace that is keeping up with demand. Housing manufacturing has just dropped since the financial crisis. It’s a fraction of what it’s been historically,” said Jeff Andrews.

“With the housing market being so competitive, right now, there are certain renters that are being priced out of buying a house. So those people are still renting. So they’re on the market for another apartment rather than a house and you have people that may have sold the house at a profit. I don’t wanna turn around and give that profit to another home seller,” said Carberry.

In the short term, the high rent prices are here to stay due to lack of supply from the high demand. Long-term still remains to be seen.

An increase in rent price is normal but this high rate of increase isn’t.

“When you’re talking about 12% one year nationally, that is an absolutely incredible number. In 2020 rent rose nationally by .6%. In 2019 it was .3%,” said Andrews.

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