4 Signs it’s Time to Get Out of the Rent Race — And Fast
If you’re on the fence about buying a home, the latest headlines might change your mind. Not only is home buying getting easier (and more affordable), but renting is becoming more and more expensive by the month.
Not sure if you’re ready to buy a house just yet? Keep these tidbits in mind before you decide to keep renting:
- National rents are at all-time highs. The national average rent hit an all-time high in July, reaching $1,409, according to RentCafe. Rents also jumped in 88% of the nation’s biggest cities that month. Throw in that the average Millennial will now spend nearly $100,000 in rent by the time they’re 30, and staying in the rent race becomes an even more questionable decision.
- Rental properties are getting older (and not cheaper, either!) It’d be one thing if those record-setting rents came with beautiful views and A-plus amenities, but that’s just not what’s happening. In fact, only a mere 9% of rental units were even built in the last decade. A whopping 66% of rental properties are over 30 years old, and on units built before 1960? Rents have jumped 21.4% since 2000. As ApartmentList economist Chris Salvati puts it, “We find that since 2000, median rents have been growing fastest among the oldest cohorts of rentals, a troubling sign for the millions of renters across the nation who are burdened by rising rents and stagnant wages.”
- Home price growth is finally slowing down. Skyrocketing home prices might have kept you from the market before, but it looks like the days of endless price growth are numbered. In fact, price growth has decelerated in half of the nation’s 35 biggest metro areas, and in red-hot markets like San Diego, price-cuts have become the norm.
- Mortgage rates are historically low. Rates might have increased slightly over the last year or so, but if you look at the last 30 years of data, they’re still low, historically speaking. The average 30-year mortgage rate in 1998 was nearly 7% this time of year — more than 2 percentage points higher than today’s average. Over the full term of a loan, that means serious savings.
If you’re on the fence about buying a home, contact an Embrace loan officer. We’ll let you know your options, given your budget, financial history, and credit. Let our experts guide the way!