Rent is on the Rise, Is Now the Time To Buy?
Did you know that rental prices have reached the highest they have been for a while across the country? As realtor.com reports, rent rose by 8.1% from the same time last year. As it notes:
“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.”
If you are currently renting and concerned about rising prices, now may be the time to consider purchasing a home by building your dream home with Faber Builders, Inc.
Your Monthly Rent Is Higher Than Your Monthly Mortgage Payments
When thinking about whether to buy a home or continue renting, how much you’ll pay each month is likely top of mind. According to the National Association of Realtors (NAR), monthly mortgage payments are rising, but they’re still significantly lower than the typical rental payment. NAR indicates the latest data on homes closed shows the median monthly mortgage payment is $1,204.
By contrast, the median national rent is $1,575 according to the most current data provided by realtor.com. In other words, buyers who recently purchased a home locked in a monthly payment that is, on average, $371 lower than what renters pay today (see graph below):
Rent is Rising Fast, and There Is No Stop In Sight
In comparing monthly rent costs and monthly housing costs, the difference is significant, but many would-be homebuyers wonder about the future of rental prices. If we look to historical Census data as a reference, the median asking rent has risen consistently since 1988 (see graph below):
The rise in rent over time shows one of the major advantages homeownership has over renting: stable housing costs. Renters face increasing costs every single year. When you purchase your home, your mortgage rate is locked in for 30 years, meaning that your monthly payment stays the same over time. This helps give you welcome peace of mind and predictability for many years ahead.
The Bottom Line
With rent rising across the country, now is the time to consider buying and look at your options. With multiple benefits of buying in 2021, Faber Builders, Inc. is here to help you every step of the way! With over 30 years of experience, our team will help lead you to the path of homeownership! Take the first step today and fill out the form below to connect with our team!
This post, With Rents on the Rise - Is Now The Time To Buy?, first appeared on the Keeping Current Matters website
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