How much higher will rent prices climb?
(WJAR) — With home prices high in Southern New England, many would-be home buyers have been forced to continue renting, which is driving up rent.
One local property manager tells NBC 10 News that the rent prices in Boston aren’t helping either. Vice President of Nexus Property Management Gregory Rice says many Bostonians are moving toward the Providence area because they can get more for the money.
Unfortunately, that's having a ripple effect on rent prices in the area.
“Our vacancy rate in Rhode Island is less than 3%. I believe it's like 2.7%, and a healthy vacancy rate for any state is about 7% to 8%,” says Rice. “So it's just that. It's just so many people. There's such a demand to live in Rhode Island that people are willing to pay $2,000. We just rented a two-bedroom apartment in Woonsocket, right?”
He continues, “I started 10 years ago, and people were paying $500 for two-bedroom apartments in Woonsocket. So, I don't know where it's going to end, but I feel like it's about to cool off because how much money do people really have?”
So how do you find an affordable rental? Unfortunately, Rice said the best bet is to get a roommate.
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And no, landlords aren't going to haggle with you. The price is the price.
“We're seeing sometimes a bid war, not too often, not like the home sales market, but folks, when they see the price they know that that is the price, there's no wiggle room. There is not,” says Rice.
Are there certain cities and towns where renters might get a better deal? Where should they look?
“So, Woonsocket, West Warwick, East Providence, Pawtucket -- places that are not Providence -- you're going to find are a bit cheaper and more affordable. But they're still up there because they're suburban or rural," Rice said.
The good news?
Rice said he thinks rent prices should start to stabilize over the next few months, especially now that the housing market has cooled off.