Rise in rent pricing affects Amarillo tenants and its economy

Amarillo, like most of the country, is facing a rise in rent pricing. This has been an ongoing issue for some residents since the rise of COVID-19 and now again as the holiday season approaches.

As stated by rentdata.org, the Texas Fair Market Rent (FMR) Data for the year 2022 says "Prices in Amarillo are high compared to the national average. This FMR area is more expensive than 78%of other FMR areas. Fair Market Rent for a two-bedroom apartment in Amarillo is $908 per month. The previous year, rent for a two-bedroom home was $906 per month. This is a 0.22% increase year-over-year." While the 2023 data is still tentative, the website currently states that FMR for a two-bedroom apartment in Amarillo is $972 per month, which would be a 7.05% increase year-over-year.

The website then also adds that this Fair Market Rent rate also applies to areas surrounding Amarillo, including Wayside, Groom, Happy, Claude, Clarendon and other cities within the region.

Additionally, the site states that compared to the rest of Texas, in 2022 the Amarillo FMR area is more expensive than 77% of the state. According to Rentdata.org, Texas has the 27th highest rent in the country out of 56 states and territories. The site also states average Fair Market Rent for a 2-bedroom home in Texas is $831 per month, and that approximately 15% of Americans qualify for some level of housing assistance.

Rentdata.org then configures that the 2022 population in Texas is around 57,745 people, estimating that around 8,662 people in Texas could be receiving housing benefits from the United States Department of Housing and Urban Development, or HUD.

Another source, rentcafe.com, approximates that in October, the average rent pricing for an apartment in a Texas city is $1,064, with the average size of a Texas apartment being 822 square feet.

Paul French, owner/broker of French and Company Relators, who has been in the real estate industry for more than 40 years, spoke about when this rise in rent began and how it is affecting the Amarillo economy.

"Rent has been rising since the end of COVID, and it has continued to rise. It dropped briefly in the summer because people were still buying homes, but now that home interest rates have gone up, people are not buying and are beginning to rent again, leading to the rise in rental pricing," French said. "This is kind of two-fold on the economy. This is good for the landlords allowing them to pay their taxes, make updates or renovations to their property, but it's also harder on the tenants because it makes it harder for them to spend their money on other needs and wants."

French goes on to state that this rise is affecting all of the housing market, not only the rental of homes but also apartments and the like. French suspects that supply and demand is at fault for the rise in rent here in Amarillo, with the inventory of available living spaces dropping, leading to a rise in rent pricing. Due to this, French says, more individuals are applying to live together, which leads to a rise in lease breaking and affecting residents' overall credit score, leading to difficulty when applying for another rental or apartment.

"What we are seeing more than ever are people who are applying but not mentioning they are being evicted at the moment. If you are currently being evicted, chances are you will not be approved, which is why we encourage people to pay their rent and leave it clean when you leave, or at the very least if you are being evicted, leave it clean," French said.

The real estate broker said that it is best for these individuals to speak openly with their landlord, and that oftentimes most rental owners are willing to give extensions if there is open communication. French stated that approximately 75% of rental owners have a mortgage against the house, and that many are relying on the funds from the tenants to make those monthly payments.

"I don't see rent prices dropping anytime soon; I actually see them rising over the next few years. I don't have a crystal ball, but I do see that pricing will go much higher than it is now," French said.

For those seeking financial help with their monthly rent increases, they are encouraged to apply for government assistance, Amarillo assistance or apply for local non-profit rental assistance programs.

For rental assistance utilizing HUD, visit them online at https://www.hud.gov/states/texas/renting.

To apply for rental assistance with the city of Amarillo, visit them online at https://comdev.amarillo.gov/programs/rental-assistance-programs-2021 .

This article originally appeared on Amarillo Globe-News: Amarillo tenants face soaring rental pricing with no end in sight