Rental rates have recently risen across the West Texas region, especially in Odessa and Midlands, a NewsWest9 article said. The increase has hit both new tenants and recurring tenants looking to renew their leases.
"So lately we've noticed an increase in demand and in rental rates," Assistant Property Manager for Boswell & Associates Mason Sparacino told NewsWest9. "For new tenants, you're looking at probably a 20% increase from a year ago. For renewals, anywhere between a 10 or 15% rental increase."
Odessa and Midland ranked among the highest in rent increases among a list of 1,835 cities, CBS7 reported.
Odessa ranked 13th in the nation and highest in Texas for percent increases in rent, with a 20% increase from May 2022. Midland had the third-highest increase in the state and the 81st-highest increase in the country, a compilation from SmartAsset says.
“A couple of reasons why you guys are seeing some rent increases on houses are just because, on the back side of it, our investors are seeing a lot more bills on their end, whether that is an increase on their property taxes or an increase in their insurance," Sparacino said.
“According to the data from the Zillow Observed Rent Index, aside from 2020 and 2021, rent in most counties in Texas has steadily increased year-to-year,” the CBS7 report said. “In Odessa and Midland, despite the large increases in rent over the past year, the average cost for a house has risen by less than half a percent in each city, with a similar figure statewide.”
It is unclear whether rents will trend down soon since “everything is kind of going up; inflation, and as a result, you got to charge a little more for rent," Sparacino said. "And you know, a lot of people are moving into town for oil," he said. "A lot of people are moving in due to work. It’s just basic law of supply and demand.”