Rents up as much as 20 percent in five years

Rents for single-family homes and apartments in some areas of Carson City have increased by about 20 percent over the last five years, according to area property managers.

Property managers are saying this was much less than the housing sale market, which boomed from 2001 to 2005. The market keeps rents competitive for those who can't afford a home, said Steve Veatch, property manager with Valley Realty and Management.

"What we saw was rents trying to keep up with that pace but they couldn't sustain the same type of increase that home prices saw in terms of sales," he said.

Carson City's housing boom hit a high in 2005 when the median price of a single-family home jumped 34 percent over a year to $348,500. The Carson City market has inched down in the last year. In October the median cost of a home listed at $302,000, according to the Multiple Listing Service, which tracks Realtor sales.

Rent for a single-family home in southeast Carson City, near an elementary school, increased 20.5 percent to $1,025 since 2001, when it rented for $850, according to Valley Realty, which manages about 300 area rentals.

Charlie Kuhn, 49, a consultant, has rented this 1,650-square-foot house for the last year.

"For what I was looking for, the home fits my needs and is well within the price range of what others are ranging in the city," he said.

He plans to purchase in the future - but he hasn't yet started watching interest rates.

A 13-unit downtown apartment complex rented units for $450 in 2001. It didn't raise rents until 2005, when the cost increased to $525 and recently $550. This is a 22 percent increase over five years.

Rent for a duplex in east Carson City, near Highway 50, increased 7.5 percent in the last five years.

Residential property owners who bought at the top of the market, who may be paying a $1,800 a month mortgage, are probably not seeing that return in rents, Veatch said. These rental homes, and ones bought in today's market, may not "pencil out" for investors.

Beth Kitchen, property manager at Charles Kitchen Realty, said when home sales are strong, like they have been in the last five years, the rental market decreases.

"A lot of investors came in to purchase property, which means we had a lot of rental units in the market," she said. "That means pricing has to be more competitive. And that has kept rental prices fairly stagnant. Combine that with low interest rates and a lot of renters were able to purchase and get into the market."

Bill Kranz, broker/owner of Eagle Real Estate and Management Inc., said rents have increased 5 percent to 7 percent on average a year on properties he manages, mostly because of utility costs.

"Everything relies on gas and electric costs," he said Monday. "The pay scale here is not that high. A lot of my rents come from the lower socioeconomic end and the people are struggling."

A price decrease could come in the summer, when home owners who tried to sell decide to put the home on the rental market, Veatch said.

• Contact reporter Becky Bosshart at bbosshart@nevadaappeal.com or 881-1212.