As the local real estate market continues to maintain a steady upward trend, local real estate agents have expressed a lack of inventory in the area. This lack of inventory has caused the monthly rent for the area to rise.
Ellen Anderson with ERA Steve Cook and Company said much like the purchase market, the rental market is dependent on price.
“Activity has been high,” Anderson said. “In Denison, I’ve always seen a high demand for rental property. Anywhere in that $800 to $1,000 per month range — the demand is very high. The higher the rent, the less possible tenants. If you are willing to look above $1,000, there is more available.”
Anderson explained the recent rise in the local real estate market has pushed the price for rentals up, creating a shortage of availability in the most common price range.
“There’s a lot of people that don’t have the down payment to buy or their credit is not good enough to get a loan,” Anderson said. “Denison hasn’t had a lot available.”
Bill Westhoff with Century 21 Dean Gilbert Realtors agreed saying the rental prices in Sherman are moving upwards of $1,200 a month.
“As property values continue increasing, rental rates are going up,” Westhoff said. “It seems like buyers are struggling to find the prices they’re used to, under the $1,000 price point. Everything seems to be higher than that now. When I get an opening at $800, it’s filled immediately.”
Westhoff explained this is good news for investors.
“There’s a lot of investor inflow from people outside of Sherman,” Westhoff said. “They are buying a lot of nicer homes and renting them for $1,400 to $1,500 per month. There’s inventory available but not a surplus.”
Westhoff said when viewing the data within the local Multiple Listing Service database this week, only three out of 25 available homes listed by an agent for lease were less than $1,000 per month.
Melissa Horner with Journey Real Estate said she too believes it is a great time for investors.
“There’s some incentives, especially for Denison,” Horner said. “I only see prices going up as far as people looking to rent. I don’t think it’s going to get any easier. It’s going to continue to be a tough market if you’re looking to find a home to lease.”
Horner went on to say the area has seen more investors than ever over the last few years. She believes competition is only going to increase from here.
Anderson said one reason for rental home popularity is the possibility of a backyard.
“A lot of people would prefer to have a yard for pets and for kids,” Anderson said.
For those that are searching for a home to lease, it is important to check all avenues, Westhoff said.
“Online is a good place to start but you might look outside of typical avenues as well,” Westhoff said. “Grayson County rentals can be found on Facebook. Sherman also still seems to be old school. They just stick signs out. You might just have to get out and drive around.”
Anderson also recommended, if all else fails, getting in the car and driving around.
“If someone contacts me and I don’t have anything, I refer them to other property management companies that don’t advertise on MLS,” Anderson said.