A recent report from realtor.com announced that rental prices have reached their highest point ever recorded in many areas across the country. It was found that rent went up by 8.1% compared to the same time last year.
“Beyond simply recovering to pre-pandemic levels, rents across the country are surging. Typically, rents fluctuate less than 1% from month to month. In May and June, rents increased by 3.0% and 3.2% from each month to the next.”
Are you a renter and worried about rising prices? Now may be a great time to start your journey to homeownership. Here’s why:
The Current Monthly Rents are Higher Than Monthly Mortgage Payments
If you’re currently renting and have found that your lease is quickly coming to an end, your monthly housing payment is likely on the top of your mind. The National Association of Realtors (NAR), says that monthly mortgage payments are going up, but not as much as rent. The median monthly mortgage payment is $1,204. On the other hand, median national rent is $1,575 according to data from realtor.com. Meaning, if you choose to extend your lease, you may see an increase in the cost of rent.
Rent Will Continue to Rise
There is a significant difference between renting and homebuying in today’s market. Below we have attached a graph on how rent has consistently risen since 1988:
If you are currently a renter, you may face increasing costs every year. On the other hand, when you buy a home, your mortgage rates are the same for the time of the mortgage, unless it’s an ARM. This will give you a peace of mind for many years to come.
Bottom Line For Homebuyers
With rent on the rise, and most likely will continue to be in the near future, renters should consider buying a home. In addition to stable housing payments, there are many benefits to owning a home. If the increase in the cost of rent has pushed you over the edge (or close to it), connect with our team today to get started on your homebuying journey!
Topics: Real Estate, Mortgages, rent vs. buy, Mortgage Payments, First Time Homebuyer, Market Outlook, Preapproval, Mortgages for Millennials, Pandemic Home Buying, Rent Costs, Increasing Rent, Rental Market