Does Renting Really Makes More Sense than Owning?

Rents Are Going Up Again

Data from the Census show that rents have been rising steadily for many years. And this year, the tendency is still going strong. Data from realtor.com demonstrates how rapidly rental costs are rising across the nation. The graph below displays annual price increases for rental units:

Your monthly expenses will probably increase if you rent and intend to sign a new lease. Your financial goals, particularly any preparations you're making to prepare for a home purchase, may be significantly impacted by those escalating costs.

Homeownership Offers Stable Monthly Costs

Naturally, one of the major advantages of home ownership is the ability to fix and stabilize your payments for the life of your loan. Renting changes all of that. Even while rents are already rising, there's a significant likelihood that many people's rental prices will rise much further this year. According to realtor.com's chief economist, Danielle Hale:

“With rents already at a high and expected to keep going up, rental affordability will increasingly challenge many Americans in 2022. For those thinking about making the transition from renting to buying their first home, rising rents will remain a motivating factor. . . .”

Thus, if you're ready to buy a home, holding off might not be a wise financial decision. Instead, break free from the cycle of rising rents and take advantage of all the advantages of homeownership immediately.

Bottom Line
Don’t let the convenience of renting fool you. While it may be nice to avoid routine maintenance on your apartment, the trade-off that comes with it is steep. By renting, you’re paying more for that convenience than you may know. Let’s connect to explore your options and the many benefits of homeownership.