A well known question is whether or not now is the time to buy a home. However you don’t often hear, “Is it a good time to rent?” That’s because it is NOT a good time to rent.
The Census Bureau recently released their third quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:
A recent Wall Street Journal article reports that rents rose “faster last year than at any time since 2007, a boon for landlords but one that has stoked concerns about housing affordability for renters.”
The article also cited results from a recent Reis Inc report which revealed that average effective rents rose 4.6% in 2015, the biggest gain since before the recession. Over the past 15 years, rents have risen at a rate of 2.7% annually.
So the biggest question is: where are rents headed?
Jonathan Smoke, Chief Economist at realtor.com recently warned that: “Low rental vacancies and a lack of new rental construction are pushing up rents, and we expect that they’ll outpace home price appreciation in the year ahead.”
What does this mean for renters? It means that the higher rents go, the harder it is to save for a down payment. Effectively making people rent for even longer.
One way to beat the rising rents is to buy a home! At this rate owning a home will be cheaper than renting, and there are so many more benefits to buying as well. Make sure to reach out to Wisconsin Mortgage Corporation to find out how much you can afford. Then, contact a Shorewest, REALTOR ® today to find your dream home! #ShorewestRealtors #HomeBuying
Source Credit: Keeping Current Matters