MYRTLE BEACH, SC (WBTW) – Rental rates for homes and apartments are rising across Horry County and it’s a problem that is years in the making.
“We are seeing rents go up across the board,” said Radha Herring, the owner of Watermark Real Estate Group.
The financial crisis of 2008 hit the area hard forcing many people into foreclosure, out of their homes, and into the rental market.
“The reason we’re seeing rates go up is because some of those people were effected by short sales, foreclosures or bankruptcy,” said Herring.
Herring says that forces them into rental properties long-term
“Once your effected by that you have to wait several years before securing another mortgage,” said Herring.
Another big reason is because Horry County is a large market for retirees relocating to the area.
“When they come here there not exactly sure they want to live so their idea is we’ll just rent a place until we figure that out, well unfortunately its much more expensive to rent,” said Herring.
Herring said this is especially true in the most desirable locations, like places close to good school districts.
“You’re looking at paying a rent rate of approximately 50% per more month in rent than a mortgage payment,” said Herring.
Construction is booming, but realtors say demand is still outpacing supply and the lack of inventory has raised rents by about 5% each of the past two years and its an even steeper increase this year.
“More people are moving into Myrtle Beach, they’re building more houses, more condos, more everything and it just seems like its going up and up and up. While my pay stays the same,” said Andrew McCann, who has rented in Myrtle Beach the past two and half years.
“It makes me angry because all these corporations that are building complexes or even older apartment complexes are taking advantage of the situation,” said McCann.
McCann said he’s seen an increase in his payment for each lease he’s signed, “it was about $730, now I’m paying $150 more dollars for nothing extra.”
McCann says the extra cost eats into his savings, and may force him to change his plans for the future
“I don’t know what I’m going to do, you know, I was in the military I might have to get a VA loan just to buy a place,” said McCann.
While traditional mortgages require a 20% down payment, Herring says some lenders ask for as little as 3.5%.
“So we encourage people who are thinking about renting vs buying take a look at the rates and see what it costs, not only in monthly payments but in terms of down payments,” advised Herring.
News13 spoke to dozens of renters in Myrtle Beach on Friday, and everyone we talked to said their rent is going up faster than their incomes.
