top of page
Search

Why Buying a Home Makes More Sense Than Renting Today

kareni617

Wondering if you should continue renting or if you should buy a home this year? If so, consider this. Rental affordability is still a challenge and has been for years. That’s because, historically, rents trend up over time. Data from the Census shows rents have been climbing pretty steadily since 1988.


And, data from the latest rental report from Realtor.com shows rents continue to grow today, even though it’s at a slower pace than we saw at the height of the pandemic:

“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).”

With rents much higher now than they were in more normal, pre-pandemic years, owning your home may be a better option, especially if the long-term trend of rents increasing each year continues. In contrast, homeowners with a fixed-rate mortgage can lock in a monthly mortgage payment for the duration of their loan (typically 15-30 years).


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. Depending on how much space you need, it’s typically more affordable to own than to rent if you need two or more bedrooms.

So, if you’re looking to live somewhere where you have two or more bedrooms to accommodate your household, give you more breathing room to spread out your belongings, or dedicate the extra space to practice your hobbies, it might make sense to consider homeownership.

Homeownership Allows You To Start Building Equity

In addition to shielding you from rising rents and being more affordable when you need more space, owning your home also allows you to start building your own equity, which in turn grows your net worth.

And, as home values typically rise over time and you pay off your mortgage, you build equity. That equity can set you up for success later on because you can use it to help fuel a move to an even bigger space down the line. That’s why, according to Zonda, the top reason millennial homeowners bought their home over the past year was to build their own equity instead of someone else’s.

Bottom Line If you’re trying to decide whether to buy a home or continue renting, let’s connect to explore your options. With rents rising, it may make more sense to pursue your dream of homeownership.

 
 
 

Comments


Herb)studio.jpg
Name Logo.png

Click below to call or follow

CALL: 818 699-9175

FOLLOW:

  • Instagram
  • Facebook
  • YouTube

Copyright © Herb Rim 2021-2023. All Rights Reserved.  

Herb Rim

RIM Property Group

 

brokered by eXp Realty Lic#02188471

303 N Glenoaks Blvd., Suite 200

Burbank, CA 91502

Website Copyright © Herb Rim 2021-2023. All Rights Reserved.  Real Estate transactions are brokered by eXp Realty, a licensed real estate broker, licensed to do business as EXP Realty of Greater Los Angeles, Inc. in California under DRE License #02188471. Herb Rim DRE#01870707.  No guarantee, warranty or representation of any kind is made regarding the completeness or accuracy of descriptions or measurements (including square footage measurements and property condition), such should be independently verified, and eXp Realty expressly disclaims any liability in connection therewith. No financial or legal advice provided. Equal Housing Opportunity.   Sitemap

eh_r_mls.jpg
bottom of page