Are you debating between renewing your lease or buying a home? Let’s take a deeper look at how rental prices have been affected by the pandemic and what we can expect to see moving forward. Realtor.com has shockingly reported that rental prices have reached their highest point ever recorded across the country. We have witnessed rent rates rise by 8.1% from the same time last year. Typically, rents will fluctuate less than 1% between months, but rent levels are surging nationwide, making for very unprecedented times. If you are currently renting and are concerned about the drastic rent increases, now might be the time to purchase a home!
If you are weighing options of whether to buy a home or continue renting, you are probably questioning how much you will pay each month. While monthly mortgage payments are rising, they are still significantly lower than the typical rent. The 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 summary, buyers who recently purchased a home locked in a monthly payment that is, on average, $371 lower than what renters pay today.
The rise in rent over time highlights the biggest advantage homeownership has over renting: stable housing costs. Renters could have the potential to face increasing costs every year. When you purchase a home, your mortgage rate will be locked in for 30 years, which shows how your payment will stay the same over time. Owning a home will give you peace of mind and predictability over the course of the loan.
With rent prices rising all over the country, buying a home may become the best option for you! Connect with Seven Gables today to learn more about homeownership today!