Median rental prices have reached their highest point ever recorded in many areas across the country. Rent payments rose by 8.1% from the same time last year. Beyond recovering to pre-pandemic levels, rents across the country are surging.
Typically, rents fluctuate less than 1% from month to month, but in May and June, rents increased by 3.0% and 3.2%. Meaning if you’re a renter concerned about rising prices, now may be the time to purchase a home.
Rent Continues to Increase
One of the major advantages homeownership has over renting: stable housing costs. The difference in monthly housing costs when comparing renting and homebuying today is significant, but many would-be homebuyers wonder about the future of rental prices.
If we look to historical Census data as a reference, the median asking rent has risen consistently since 1988. Renters face increasing costs every year as opposed to when you purchase your home, your mortgage rate is locked in for 30 years.
Monthly Rents vs. Monthly Mortgage Payments
When you weigh your options of whether to buy a home or continue renting, how much you’ll pay each month is likely of importance to you. While monthly mortgage payments are rising, they’re still significantly lower than the typical rental payment. For example, the median monthly mortgage payment is $1,204 while the median national rent is $1,575. In other words, buyers who recently purchased a home locked in a monthly payment that is, on average, $371 lower than what renters pay today.
With rents continuing to rise across the country, you may want to consider buying sooner rather than later. Let’s connect to ensure you make the best decision.