Key Takeaways
- Learn about the true costs of renting vs. owning a property in today’s market.
- Homeownership still provides a stable alternative to rising rents.
- There’s no better time to get out of the rental money trap than today!
Experts across the board agree and have been sounding the alarm. Anticipating yet another increase in rents this year, many people are wondering if buying a home is now the right move for them. If that’s you, before you decide whether it’s time to look for a new house or another apartment, let’s take a look at some facts about renting in 2022.
A Very Brief History of Rent
Since 1998, the cost of renting either an apartment or a house in the U.S. has steadily increased. In 2021, however, the national median rent increased by a surprising 17.8%. In pre-pandemic times, the rate of increase averaged just 2.6%.
So, what are experts saying about the costs associated with renting for 2022?
Astonishingly, industry leaders in the real estate market predict rental costs will grow by as much as 7% this next year. That means, if you’re planning to move into a different rental this year, you’ll likely pay far more than you have in years past.
But to put this into a more focused perspective, these same industry leaders forecast that growth in home values throughout 2022 will be somewhere around 3% to 5%.
Homeownership Offers Stability vs. Renting
You might be asking yourself right about now if continuing to rent is the best option for you. With the cost of rent set to increase at a faster rate than a house will gain in value, why wouldn’t you?
The primary benefit of homeownership is that it provides a stable monthly housing cost for the duration of your loan, which is typically 15 – 30 years. Compare that to renting, where the rental fee goes up every year when it comes time to renew your lease.
Another significant benefit to homeownership is that you are investing a portion of your money back into yourself and building equity for the future when you make your monthly mortgage payment. With renting, all of that money is just gone.
And with the cost set to increase this year by 7%, it will be going even quicker.
Your Money Can Go Further
Linda Craft & Team loves helping individuals and families make the transition from renters to homeowners. Browse our video library of resources for buyers to get started on your journey. Explore the amazing areas around The Triangle where you can buy a home, and use our mortgage calculator to find out what you can afford. Contact Linda Craft & Team at 919.235.0007 to get started today!