Every year, many renters ask themselves the same question: Should I continue renting, or is it time to buy a home?
If you are a renter, chances are you have asked yourself that question at least once, and it is likely because you have faced an increase in your monthly housing costs over time. After all, according to Census data, rents have risen consistently for decades.
To make an informed and powerful decision, the first step is understanding what is happening in today’s housing market so you can 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 are a renter and plan on signing a new lease, your monthly costs are likely to go up when you do. Those rising costs can have a big impact on your financial goals, including any plans you are 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 are able to lock in and stabilize your payments for the duration of your loan. That’s not the case when you rent.
While rents are already on the rise, there is 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. . . .”
So, if you are ready to become a homeowner, waiting any longer may not make financial sense. Instead, escape the cycle of rising rents and enjoy the many benefits that come with homeownership today.
Starting your journey towards homeownership can pay off significantly this year. If you are financially ready today, let’s connect and discuss your options.