Carrboro Rent Rates Drop in 2002

The Triangle is now the most expensive area in North Carolina to rent homes, and the region saw the price of rental housing rise $19 since last year, according to a study done by the U.S Department of Housing and Urban Development.

Karnes Research Company took the HUD study one step further to discern specifics for Chapel Hill and Carrboro.

Analyst Michael Williams said the cost of renting in the town of Carrboro declined 7 percent from last year's figures. Williams said the figures did not include non-standardized housing such as Granville Towers, which is not available to every member of the community.

Williams said rent will increase in Chapel Hill and Carrboro in upcoming years because of the hesitant nature of each town's governing body. "The city council of Chapel Hill is restrictive in allowing for new development, which makes it riskier and expensive for developers," he said.

Carrboro Alderman Mark Dorosin said a possible reason for Carrboro's rent decrease in 2002 is that rents have traditionally been artificially high and customers were only willing to pay that much for housing for a limited time. "A lot of housing was overpriced, and maybe the market has reached a breaking point," he said.

Chapel Hill Town Council member Mark Kleinschmidt said the rates have increased due to the high costs of buying a house in Chapel Hill.

"When it is more difficult to buy, it keeps the rent demand high," he said. "People with no other option have to rent."

Kleinschmidt said the low vacancy rates also contributes to high rent. "People get stuck in leases, which makes it difficult for them to move out of their situation."

He said the lack of supply creates a scarcity of rentals that subsequently drives up the price of renting.

The council also supports nonprofit housing organizations such as Affordable Rentals Inc. and EmPOWERment Inc. to combat the steady rise in price.

"If the council can maintain its commitment to these types of organizations, it can create real alternatives which will help keep rental rates in line with the market," Kleinschmidt said.

Officials from Habitat for Humanity, another nonprofit housing provider, are also concerned about the increase in rates. Susan Levy, executive director of the Orange County chapter, said the increase especially discourages the people her organization serves from renting a quality place.

Habitat for Humanity generally deals with people whose income falls within the range of $14,000 to $26,000. "It is almost impossible (for these people) to find an affordable apartment in this area, which causes many of them to live with relatives, live in a substandard place or spend more than 50 percent of their income on rent," Levy said.

Kleinschmidt and Dorosin are especially concerned with the rent increase because of the effects it may have on the diversification of their towns.

"The biggest thing to fear is becoming a homogenous community," Kleinschmidt said.

Dorosin echoed Kleinschmidt's fear about losing diversity.

"It is critical to maintain the ethnically diverse community in Carrboro," he said. "If we don't provide some available housing for all of Carrboro's residents, many people who work to contribute to the well-being of the town won't get to enjoy the fruits of living in it."

The City Editor can be reached at citydesk@unc.edu.