MID-MICHIGAN, Mich. (WJRT) – Rental prices are skyrocketing.
A woman in the township of Grand Blanc was in shock and disbelief when she found out how badly her apartment complex wanted to renew its lease for a year.
She said the price is so high that she is thinking twice now about whether she even wants to stay.
Most people know that the price of everything is going up: food, gasoline, medical care, and shelter. What is happening in Mid-Michigan is no surprise to some economists.
This tenant of Heatherwood Apartments in Grand Blanc Township currently pays $ 1,045 per month in rent. The tenant’s lease expires in April.
To renew this lease for an additional 12 months, the tenant’s rent increases by $ 305 per month. However, if the tenant renews for 15 months, they only skip $ 52. So what gives?
University of Michigan-Flint economist Chris Douglas said the effects of inflation are hitting the housing industry.
“You should expect rents to go up just by following the general trend in house prices. If house prices are pushing people out of houses, you will see more people trying to move into apartments, which will push up. apartment prices, ”he said.
Rent prices have jumped an average of about 12% for a one-bedroom apartment this year, according to a recent study by Zumper. A two-chamber jumped nearly 14%, and those rates could rise even more until 2022.
“The costs of utilities, the cost of labor, gardeners, maintenance people, etc.” – this will increase costs. The costs of building materials have skyrocketed due to the pandemic, so you have to carry out these repairs in the apartment. complexes are increasing, ”said Douglas.
This means that tenants are faced with the choice of renewing for a higher cost or not to renew.
The company that manages the Heatherwood Apartments in Grand Blanc Township did not return any messages seeking comment on Thursday.