Low inventory leads to rising rental home prices

By  | 

RENO, Nev. (KOLO) - Moving from the Bay Area, Andrew Contreras and family are eager to find a place to rent before he starts his new job in Northern Nevada. And he says an apartment isn't really an option.

"It's hard with two kids to be in an apartment above and below someone and they're used to having a yard and being outside in the area," says Contreras.

But finding a house for rent that's available and in their budget hasn't been easy.

"They're gone within an hour of Craigslist, it seems like," he says.

"Our rentals are on the market an average of two weeks," says Amber Fuller-McDade, who owns Realty Boulevard. "A lot of times, we're renting them on the first week we put them up."

Fuller-McDade says with all the growth, the inventory for homes is low.

"Everyone's coming here, so we need more rentals because people can't afford to buy so they're picking rentals and paying more for them," she says.

And they are paying a lot more these days.

"Most prices have gone up $200 to $400 a month in rental prices from a year, year-and-a-half ago," says Fuller-McDade.

Doug McIntyre, President of the Reno/Sparks Association of Realtors, says the prices have gone up so much because they can.

"It all goes back to supply and demand and there's just not a lot of supply out there," says McIntyre. He says the number of single-family homes for rent available right now is less than half of what it was a year ago.

"Is there a light at the end of the tunnel? My guess is that it's at least a year or two away," he says.

In the meantime, would-be renters have to be prepared to act quickly if they find a home they want to live in.

"You'd better have your money ready and have everything set and when it's time for you to put that money down," says Andrew Contreras. "If you don't do it, someone else will."