{"id":212,"date":"2017-11-06T09:59:37","date_gmt":"2017-11-06T09:59:37","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?post_type=studies&p=7114"},"modified":"2017-11-06T10:00:37","modified_gmt":"2017-11-06T15:00:37","slug":"houston-we-have-a-problem-with-rents","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/research\/houston-we-have-a-problem-with-rents\/","title":{"rendered":"Houston, We Have a Problem (With Rents)"},"content":{"rendered":"

A practice widely considered unethical (and illegal in most states), price gouging is when sellers take advantage of a disaster situation to excessively raise prices on essential goods like food, fuel, and shelter. Concern across communities about this problem is especially heightened after the past several months of storms, forest fires, and other disasters.<\/p>\n

Houston, recovering from the damage inflicted from Hurricane Harvey, is no exception. The office of Ken Paxton, Texas Attorney General, reports receiving upwards of 5,000 complaints <\/a>– regarding everything from food to home repairs. In an incident that elicited enough outrage to spark a viral news story, a Best Buy was criticized for selling a case of water<\/a> for $42.<\/p>\n

But price gouging is not always as clear-cut and visible as watermarked up 200%. In an interview<\/a> with Fox News, Paxton explained his office\u2019s approach for monitoring the situation, \u201cWe try to be reasonable in how we’re dealing with this. The general rule is, if it goes up 10 percent or more, and it’s above like a three-month average, we’re going to look at it.\u201d The measured approach is likely because, in many cases, it\u2019s difficult to draw a line between honest price increases and predatory practices.<\/p>\n

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\"CNBC\"<\/p>\n

* Source: CNBC<\/strong><\/p>\n

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One area that is especially difficult to monitor, but increasingly important to vulnerable residents is rent. The concern is that with the widespread destruction of so many homes, the housing supply will be severely limited, resulting in price increases<\/a>. Displaced residents can\u2019t hold out for fair prices and landlords who understand they are in a position of power over these desperate renters could inflate prices unfairly. This is no small issue either. A 2015 census estimate<\/a> puts the number of Harris County residents who rent at about 45%.<\/p>\n

Price increases could also be exacerbated by the fact that Houston is already a market with high demand. Between 2010 and 2016 the city has increased in population by about 10% (to 2.3 million) and broader Harris County by about 12% (to 4.6 million).<\/p>\n

So, are we seeing an increase in rental prices in the Houston area since Harvey? We decided to use our data to find out. At RentHop, we have thousands of rental listings across major markets in the US. By comparing prices in Houston before and after the disaster, we can identify price changes that seem questionable and investigate further.<\/p>\n

We find that:<\/p>\n