Rental affordability is a big issue in our area and while rental prices increase, there is no benefit to your long-term plan to pay someone else’s mortgage when you could be gaining equity in your very own home.
There are other advantages as well including being able to accommodate your pets, the pride of home ownership and choosing you exact neighborhood and price range.
The latest rental report from Realtor.com shows rents are continuing to grow which means you’ll get less home for the same amount of money.
“In March 2023, the U.S. rental market experienced single-digit growth for the eighth month in a row . . . The median asking rent was $1,732, up by $15 from last month and down by $32 from the peak but is still $354 (25.7%) higher than the same time in 2019 (pre-pandemic).”
Owning a Home Could Be More Affordable if You Need More Space
The graph below uses national data on the median rental payment from Realtor.com and median mortgage payment from the National Association of Realtors (NAR) to compare the two options. As the graph below demonstrates, depending on how much space you need, it’s typically more affordable to own than to rent:
Buying versus renting
Homeownership and Equity
Homeownership not only shields you from rising rent costs, and gives you tax benefits, being a homeowner comes with equity gains that are like cash in your pocket when you sell. You can use that equity for home upgrades, paying off debt or investing in another home. Rent won’t do that for you.