More people and needs means higher rent

Published: Jul. 7, 2017 at 6:32 PM CDT
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Lincoln has had a large number of people move to town in the past few years.

According to the city, the population is expected to go from 275,000 to more than 311,000 by 2020, which means an increase in housing needs.

"A thousand units a month. That's alot. That's new, in addition to what we currently have," said Jack Gregg of Performance Property Management.

Gregg of performance property management said it is all about supply and demand, which will ultimately affect the price.

"The higher the demand the more people are willing to pay," he said.

He added, "especially when you have people coming in from areas of the country where they're used to paying alot more."

The capitol city saw rent increase more than 30% in the last 10 years, and it saw increases of 5 to 8% just in 2016.

One renter in Lincoln, Hillary Dobbs, said, "My landlord from my last apartment, he said he was raising the rent for the new tenants to 1000 a month instead of just 900. So I have seen quite a bit of rental increase in just a year in Lincoln."

In addition to population increases, because this year's current property valuations, the trend will likely trickle down to rent prices.

The city's urban development department reported that 40% of the rent paid to landlords each month goes toward property taxes.

"Taxes went up a considerable amount. It's a supply and demand," said Gregg.

He added, "as the demand continues and the supply doesn't keep pace, everything is going to go up."