Are Rent Increases Stressing You Out?

In the past year, almost 75% of both current and new renters have seen their rent go up, at a quite significant rate. Traditional rent hikes average 5% per year, while this year's expected increase is 6.3%. If you’re a renter, you're likely facing an important decision: renew your current lease, start a new one, or buy a home. Before you make a decision, it helps to understand the true costs of renting moving forward.

Homeownership Provides an Alternative to Rising Rents

These rising costs may make you reconsider what other alternatives you have. If you're looking for more stability, it could be time to seriously consider homeownership. One of the many benefits of owning your own home is it provides a stable monthly cost that you can lock in for the duration of your loan. Monthly rent payments usually increase over time, but a fixed rate mortgage ensures that you pay the same amount each month (exclusive of real estate taxes). This makes it easier for you to budget and plan for the future.

Another benefit of homeownership is equity. A recent report from CoreLogic shows the average homeowner gained $34,300 in equity over the past year.  Think of equity as a savings account.  Each month you add more equity as you pay down your mortgage. As a renter, you won't create any equity, only your landlord will.  

If you’re thinking of renting this year, let’s chat. We'll get you on the road to homeownership!