Every year, many renters ask themselves the same question: Should I continue renting, or is it time to buy a home?
If you’re a renter, you’ve probably asked yourself that question at least once, and it’s likely because you’ve faced an increase in your monthly housing costs over time. After all, according to Census data, rents have risen consistently for decades.
The first step to making an informed decision is understanding what’s happening in today’s housing market to determine which option is the better long-term financial decision for you.
Rents Are Going Up Again This Year
Rents are skyrocketing right now. Data from realtor.com shows just how much rental prices are surging throughout the country. The graph below highlights rental unit price increases over the past year:
If you’re a renter and plan on signing a new lease, your monthly costs are likely to go up when you do. Those rising costs can significantly impact your financial goals, including any plans you’re making to save for a home purchase.
Homeownership Offers Stable Monthly Costs
Of course, one of the key benefits of owning your home is that you can lock in and stabilize your payments for the duration of your loan. But, unfortunately, that’s not the case when you rent.
While rents are already on the rise, there’s a good chance many people will see their rental costs increase even more this year. As Danielle Hale, Chief Economist at realtor.com, says:
With rents already at a high and expected to keep going up, rental affordability will increasingly challenge many Americans in 2022. For those thinking about making the transition from renting to buying their first home, rising rents will remain a motivating factor. . . .”
Starting your journey towards homeownership can pay off significantly this year. So let’s connect today to discuss if you’re financially ready and what options are available to you.