A new study shows that home rental prices are rising very quickly in several cities, including Jackson. Ben Short of Jackson tells us he has been renting for close to 10 years. Over the last few months, he saw a noticeable change in the rates. “I thought wow, it’s really getting high out here. We started kind of at the 750 range and we just kind of watched it go up,” Short said.
The study outlining the rising price points was released Tuesday by the data Firm Zillow. It showed that rental prices had risen overall by 4.3% compared to last year.
Local experts tell us tighter lending policies and prices have contributed to the jump.
“The credit scores are still being required by a lot of lenders to be around 620,” CJ Nolan of EXIT Reality said. “There’s a few companies that will take a 580, but unfortunately Mississippi’s (average) credit score is a lot less than that. It’s forcing people to rent and they can’t buy. When landlords know that, rents go up.”
In Jackson the average monthly rate in Jackson is $1,169.00. That number is climbing at more than 22% a year. Nason also says the market cash in 2008 stopped the construction of a lot of new homes. That is another factor that has more people looking at renting verses buying.
When you don’t have options, that is basic supply and demand. With the lack of options, the price will increase. Right now is the perfect time to buy a home. You’re probably paying as much in rent as you would on the note on your house. A lot of things are