The truth about the cost of renting instead of owning a home.
If you’re a renter, you face an important decision every year: renew your current lease, start a new one, or buy a home. This year is no different, but before you dive too deeply into your options, it helps to understand the true cost of renting moving forward.
Three out of four renters who have moved in the past 12 months reported seeing their rent increase, but the strain from recent rate hikes isn’t exclusive to renters who have recently moved. Nearly two-thirds of renters who have lived in their current residence between 12 and 24 months and will likely renew their lease also reported rent increases. **According to the census, rents have been rising fairly consistently since 1998. **
If you’re looking for more stability, it could be time for you to prioritize homeownership. One of the many benefits of owning a home is that it provides stable monthly costs that you can lock in for the duration of the loan. Monthly rent payments may increase over time, but with a fixed-rate mortgage, you can pay the same amount each month. Also, your interest rate is locked in. Steady payments allow you to budget wisely and make plans for the future.
Homeowners also enjoy the added benefit of home equity. As a renter, your payment only covers the cost of your dwelling. If you pay your mortgage on a house, you grow your wealth through the forced savings from your home equity.
If you’re thinking of renting this year, it’s important to keep in mind the true cost you’ll face. Let’s check so we can see how we could be making your journey to homeownership today. Call or email us anytime; we look forward to hearing from you!