Key Takeaways:
- Median rental payments have reached their highest point ever, with rents up by 8.1% from this time last year.
- Buying a home may be more affordable than you can imagine—the average mortgage payment is actually lower than the median monthly rent currently.
- Here at Linda Craft & Team, we are experts in homeownership. Contact our team today and we can discuss the ins and outs of owning a home in the Triangle!
Rental Payments Are on the Rise
Average rental prices have reached record-breaking highs in many areas across the country, according to recent data from realtor.com. The report found that rental payments have increased by 8.1% from the same period last year. In just May and June alone, rents rose by 3.0% and 3.2% from one month to the next. With these rising rental prices in mind, now may be the best time for renters to transition into homeownership.
Monthly rental payments are more than monthly mortgage payments
Yes, you read that right—the average renter is paying more than the median mortgage payment. Although mortgage payments are also rising, the National Association of Realtors (NAR) notes that they’re still considerably lower than the typical rental payment.
Through analyzing the latest data on homes closed, NAR found that the median monthly mortgage payment is $1,204. In comparison, the most current data provided by realtor.com shows the median national rent to be $1,575—this means that buyers who recently purchased a home have, on average, a mortgage payment that is $371 lower than what renters are paying right now.
Don’t you want the more predictable forecast?
When you’re thinking about investing in real estate, your financials are always going to be at the forefront of your mind. So, many prospective buyers are wondering about the future of rental prices. Looking at the historical Census data in the above graph, we can see that the median asking rent has increased consistently since 1988.
The primary difference between renting and owning a home is the predictability of your payments—rental prices are probable to rise, whereas mortgages rates are locked in for the length of your mortgage payments. One of the top advantages of homeownership is the predictability of your payments and the peace of mind that brings.
Renters, Are You Ready to Own a Home?
Rental prices are rising across the country, which means now is the time to consider buying a home. Purchasing a home is one of the largest investments you can make, and it could even save you money in the long run. There are countless benefits to owning a home, and the Linda Craft & Team would love to talk you through them all. Contact our team today to discuss your financing options, and we can plan out your next steps toward Triangle area homeownership!