A few months ago, I wrote a Last Word column in this paper, titled “The Rent is Too Damn High.” At the time, the landlord of the house I’d been renting was showing the property to investors. They’d come into my personal space, take photographs of said space with my belongings in it, and leave as quickly as they came, with me wondering, “Will they buy this house and kick me out to flip it? Will they take over the property and lease and raise my rent?” With uncertainty looming like a dark cloud, I began to search the market for rentals to gain some sense of control over the situation, and a stark realization came to light: The rent in Memphis is too damn high.
I quickly learned that I’d been paying significantly less than what I’d be shelling out monthly moving into another rental in the city. The numbers shocked me, as I hadn’t paid much attention to the rising costs over the last couple years, being in place for as long as I had. According to a June 2022 Apartment List report, the average rent for a two-bedroom apartment in Memphis stands at $1,174, an 11.6 percent increase over last year — and a 29.5 percent increase from the June 2020 average of $906. The most recent data from Dwellsy (February 2022) showed the median rent listed for a single-family home here sitting around $1,700, 55 percent higher than the same time last year — adding a shocking $605 to the monthly bill. Data from the 2020 United States Census Bureau showed median incomes in Memphis at $26,006 for individuals and $41,864 for households. Do you think those, too, have seen such sharp increases? In the last two years, how many of you received a 55 percent raise? Or even 11 percent?
As you can imagine, the prospect of this potential additional hit to my bank account had me stressed to the max. I suddenly shifted gears … it didn’t make sense to rent, not in this market, not anymore, ever maybe. Buying would be the way to go. I’d soon have as big a wake-up call in this arena as well. Zillow’s Home Value Index, which “only includes the middle price tier of homes,” shows the typical home value in Memphis at the end of June 2022 was $153,894 — a 21 percent increase over last year. That number in the June 2020 report was $107,000.
To be honest, I couldn’t find any decent homes near $150,000. And if I were to daydream about one even $100k more than that, it’d be contingent or pending about as soon as it was listed. The market was “hot,” despite rising mortgage rates (which, we touch on in this issue’s finance column, “Mortgage Math”) — and not in any way ideal for a buyer. So I did what any panic-prone, emotional decision-maker would do: I put an offer on the home I already lived in. If investors wanted it, shouldn’t I? The whole reason I was in this mess in the first place was because I didn’t want strangers in my space or to be forced to unexpectedly move or endure an exorbitant rent hike. And since another appointment had been made for the landlord’s “old friend” to come check the place out, I offered a little more than I thought I should — to really seal the deal. All I could think of was a line from one of my favorite Portlandia skits: “Get these people out of my house, Ron!” (Fittingly, the landlord’s name was Ron.)
Things became a blur pretty quickly after that. While I did get a good price, depending on who you ask, I bought at a horrible time for interest rates. And every problem the ancient home has now sticks out like a streaker in Walmart. It’s a too-small fixer-upper that hasn’t been properly cared for the 18 years my landlord owned it. So … perhaps I’m feeling some regrets. But hey, no one can come in unless I want them to. Take that!
With so much talk about low inventory — for rentals and homes for sale — and the cost of *gestures broadly at everything* increasing exponentially, almost in the blink of an eye, what are folks to do? I know I’m not the only one who’s felt this type of pain recently. I’ve had friends get the boot after the rental they lived in was sold to investors. I’ve heard of many home-buyers paying way over asking price.
For now, I’ve gotten off that ride. But it’s all still spinning out of control. Whatever the hell is going on, can someone slow it down?
We all just want a place to call home.
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