MEMPHIS, Tenn. — With the cost of renting increasing, many Memphians are struggling to budget their monthly costs, leaving some to question if renting is an option for them at all.
Recent data shows rent in the Bluff City is more expensive than it was a year ago, and this is pricing some people out of their home.
“It’s honestly not worth it,” said Dylan Creigh-Martinez, who's been renting since he was 18-years-old.
Creigh-Martinez said it just might be better for future renters to stay at home with their parents. He said, rent is outpacing worker's pay.
“It’s sucking all the money out of Memphis,” said Creigh-Martinez.
Since the start of the pandemic, rent has jumped more than 25% in Memphis.
According to Apartment List, the median rent of a one-bedroom is $911 in Memphis. With the median income in Memphis being $26,006, according to the US Census Bureau, this means Memphians on average spend around 42% of their paychecks on rent.
There are different reasons why rent is increasing.
"That can be attributed to many different factors in the community,” said Phillip Boals, longtime realtor in Memphis, "the interest rates for one.”
Interest rates were at a 22-year-high coming into February. While rent could slow down if the Federal Reserve slashes the interest rate, Austin Harrison, an Assistant Professor in Urban Studies at Rhodes College says there is nothing that really controls how much big property management companies charge people for rent.
“There is nothing to reign it in," said Harrison. "Week by week these things that we are calling inflation, a lot of times it’s really more greed by the housing market.”
So what can you do?
- Try negotiating with your landlord
- Speak with tenants to see what they think about the apartment complex owner
- Try to move during the winter months when demand and prices are low
- See if newer developments have reduced rent rates
According to Harrison, new developments have to include apartments available at a reduce rate, which could help some with the a heavy financial burden.
"20 to 25% of their units are required to be that, and if they’re not following that mechanism, then that’s an enforcement and policy reform opportunity for tenants to engage in,” said Harrison.
However these reduced rents are really only 20% off the normal rent price, meaning a $1,300 rent may be just over $1,000. This may leave some renters left to pay up on places they still cannot afford.
"A lot of them are stuck right now because people just can't afford what's being put out," said Creigh-Martinez.
For Memphians who are in this situation, Harrison recommends reaching out the Shelby County Division of Community Services for any emergency rental assistance, or if they can connect you with rental support resources.