COLLEGE STATION, Texas (KBTX) - If you've paid rent or owned a home in the past two years, chances are you've felt the pain in your wallet. Although, experts say there may be little money for the Bryan-College Station housing market in 2023.
Curtis Davis, owner of Aggieland Apartment Finders, has been in the real estate industry since 2006. According to him, this year, prices have risen like never before.
"Prices are higher than we've ever seen in all my years," Davis said. “I mean COVID-19 happened. Many things have changed."
Although the high prices didn't stop Davis' customers from stopping by his business.
"Today I had four plays. People come to look at rentals and houses sooner rather than later before the new year, because you can't wait until the last minute like May or June for example. Then you won't find anything. It's competitive out there," he said.
Davis said that with a growing population comes increasing demand for all types of housing in Bryan-College Station.
"Single-family homes went from $1,500 to $1,800. As far as rentals go, one- to two-bedrooms look like they're going for between $100 and $250," Davis said.
Experts report that the demand for new houses in our area is not as high as it was two years ago. Adam Pardo, an economist at the Texas Real Estate Research Center, says he foresees a brighter future for the housing market in the coming months.
"The price increases will slow down, both for rent and house prices, than they have been in the last two years," said Pardo. "And it's an easy prediction because it's already happening."
One major factor in flattening rents and housing prices is contributing to interest rates, according to Perdue. According to him, looking at this year's interest rates compared to 2020, consumers have lost more than 50% of their purchasing power.
"This is going to be the big driver of the housing market in the next year or two, because it's all about how the Fed handles the situation, with the inflation rates," Perdue said.
Pardo explained that one question remains: How much will the costs go up?
“Are we going back to the typical increases in house prices and rents that we see in Texas or is it a little lower? Or even negative because we've gotten so high in the last two years," Perdue said.