RENTS ARE ON THE RISE DONT GET CAUGHT IN THE RENTAL TRAP

Dated: September 6 2018

Views: 100

Rents Are On The Rise: Don’t Get Caught In The Rental Trap!

Rents Are on The Rise: Don’t Get Caught in The Rental Trap!


There are many benefits to homeownership, but one of the top benefits is protecting yourself from rising rents by locking in your housing cost for the life of your mortgage.

Don’t Become Trapped 

A recent article by Apartment List addressed rising rents by stating:

Our national rent index is up 0.1 percent month-over-month, marking the sixth straight month of increasing rents. Year-over-year growth now stands at 1.2 percent.”

The article continues, explaining that:

Rents increased month-over-month in 62 of the nation’s 100 largest cities, down significantly from the 85 cities that saw rents rise last month. That said, rents are still up year-over-year in most of the nation’s largest markets — 77 of the 100 largest cities have seen rents increase over the past twelve months.”

Additionally, Urban Land Magazine explained that,

Currently, nearly half (47 percent) of renter households are cost burdened (i.e., paying more than 30 percent of income for housing), while 25 percent (totaling 11 million households) are severely cost burdened, paying over 50 percent of their total household income for rent.”

These households struggle to save for a rainy day and pay other bills, including groceries and healthcare.

It’s Cheaper to Buy Than Rent

As we have previously mentioned, the results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers show that the range is an average of 2% less expensive in Honolulu (HI), all the way up to 48.9% less expensive in Detroit (MI), and 26.3% nationwide!

Know Your Options

Perhaps you have already saved enough to buy your first home. A nationwide survey of about 1,166 renters found that 34% said they rent because they cannot afford to buy, 29% said they cannot afford to buy where they live, and nearly a quarter (24%) were saving to buy.

Many first-time homebuyers who believe that they need a large down payment may be holding themselves back from their dream homes. As we have reported before, in many areas of the country, a first-time homebuyer can save for a 3% down payment in less than two years. You may have already saved enough!

Bottom Line

Don’t get caught in the trap that so many renters are currently in. If you are ready and willing to buy a home, find out if you are able. Have a professional help you determine if you are eligible for a mortgage today.

Blog author image

Bevia Patrick

Since its inception in 1995, Patrick Team Properties has exemplified a profound commitment to its clients by providing the highest standard of service, integrity and work ethic in the field. Patri....

Latest Blog Posts

More Americans Choose Real Estate As The Best Investment Than Ever Before

For Buyers,Housing Market UpdatesMore Americans Choose Real Estate as the Best Investment Than Ever BeforeAmericans’ opinion on the value of real estate as an investment is climbing. That’s

Read More

Why You Need An Expert To Determine The Right Price For Your House

Why You Need an Expert To Determine the Right Price for Your HouseIf your lifestyle has changed recently and you’re ready to make a move, taking advantage of today’s sellers’ market 

Read More

Maryland Farmers Market Guide 2022

                      Maryland Farmers Market Guide 2022Many farmers markets across Maryland are open for the season. Here are some on PTP's

Read More

Why Summer Is A Great Time To Buy A Vacation Home

Why Summer Is a Great Time To Buy a Vacation HomeYou may be someone who looks forward to summer each year because it gives you an opportunity to rest, unwind, and enjoy more quality time with your

Read More