Rising Rates Worry Potential Apartment Renters
By: Josh Berry
Updated: January 25, 2013
More of your money is now at risk if you find yourself looking for an apartment in central Arkansas. Brokers say rates in Little Rock have climbed the ladder squeezing your wallets dry.
In some cases renters can expect to pay forty cents more per square foot. That could run you at least $300 more for an apartment. These rates are forcing some potential renters to question where they want to live.
"Why did I move to Little Rock?" asked potential renter, Frances Horton.
Horton moved her family across the country and now isn't so sure Little Rock was the best idea.
"It's kinda rough because everything's really overpriced for our budget and with kids it makes it a little bit more difficult."
This potential future resident is blown away at some of the prices she's seen for apartments.
"Cause a lot of times they don't even have their prices listed until you get there and you're like whoa."
It's apparently what a buyer is supposed to expect right now.
Jerry Webster explained, "Basically it's because of supply and demand."
Webster, a real estate and apartment broker, claims there are a lot more people wanting to rent apartments than there are apartments to rent.
Owner of Apartment Hunters in Little Rock, Cathy Tuggle says a 95 percent occupancy rate is higher than the majority of the country. She's worked in central Arkansas for 14 years helping people find apartments.
Webster says that's what's driving up rates from just 80 to nearly $1.20 per square foot.
He said, "They've already started raising their rates."
Some of the apartments with the highest rates are those where people want to live most -- those include Chenal Valley, West Little Rock in general and the Heights.
Webster claims there honestly hasn't been enough apartments built. He says those owners will likely miss the "sellers market" time frame because we could see rates drop again here in central Arkansas once the apartment communities really expand in the next couple of years.
Webster says the market is a perfect storm for apartment owners. They have the ability to jack up prices because they don't need you.
"You [the buyer] don't have a lot of negotiating room because he [the seller] doesn't have a lot of units to begin with."
And if they do have space they can tout their fancy amenities which includes in some cases even a movie theater.
For Frances and her family though "It's not worth it. It's really not worth it." They're just looking for a good deal.
In some cases renters can expect to pay forty cents more per square foot. That could run you at least $300 more for an apartment. These rates are forcing some potential renters to question where they want to live.
"Why did I move to Little Rock?" asked potential renter, Frances Horton.
Horton moved her family across the country and now isn't so sure Little Rock was the best idea.
"It's kinda rough because everything's really overpriced for our budget and with kids it makes it a little bit more difficult."
This potential future resident is blown away at some of the prices she's seen for apartments.
"Cause a lot of times they don't even have their prices listed until you get there and you're like whoa."
It's apparently what a buyer is supposed to expect right now.
Jerry Webster explained, "Basically it's because of supply and demand."
Webster, a real estate and apartment broker, claims there are a lot more people wanting to rent apartments than there are apartments to rent.
Owner of Apartment Hunters in Little Rock, Cathy Tuggle says a 95 percent occupancy rate is higher than the majority of the country. She's worked in central Arkansas for 14 years helping people find apartments.
Webster says that's what's driving up rates from just 80 to nearly $1.20 per square foot.
He said, "They've already started raising their rates."
Some of the apartments with the highest rates are those where people want to live most -- those include Chenal Valley, West Little Rock in general and the Heights.
Webster claims there honestly hasn't been enough apartments built. He says those owners will likely miss the "sellers market" time frame because we could see rates drop again here in central Arkansas once the apartment communities really expand in the next couple of years.
Webster says the market is a perfect storm for apartment owners. They have the ability to jack up prices because they don't need you.
"You [the buyer] don't have a lot of negotiating room because he [the seller] doesn't have a lot of units to begin with."
And if they do have space they can tout their fancy amenities which includes in some cases even a movie theater.
For Frances and her family though "It's not worth it. It's really not worth it." They're just looking for a good deal.
