People often ask us “Is now is a good time to buy a home?”
Strangely, no one ever asks “Is now a good time to rent?”
We think that this post will clear up both questions.
If you are currently renting with no plans to buy, you might want to check out the chart below. The Census Bureau just released their second quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:
Yikes! You might counter by saying that home prices are going up as well. True, but once you buy, you essential freeze your housing costs in time.
Some additional information, was released at the same time in a report by Axiometrics:
“The national apartment market’s annual effective rent growth rate of 5.1% in June 2015 represented a 47-month high, and continued a streak of 5.0%-plus rent growth that is now the longest in at least six years, according to apartment market research. The effective rent growth in June 2014 was 3.7%, putting June 2015’s exceptional performance into perspective.
This is the highest rate since the 5.3% of July 2011. The metric has reached at least 5.0% for five straight months, the longest such streak since Axiometrics started monthly reporting of annual apartment data in April 2009.”
Where will rents be headed in the future?
Stephanie McCleskey, Axiometrics vice president of research, commented on the above report in an article by Real Estate Economy Watch:
“Rent growth is just shy of the post-recession peak, and the June metrics reflect the continued strength of the apartment market. The demand for apartments is still strong, despite the record number of new units being delivered this year. Tight occupancy is why landlords can push rents higher.”
Bottom Line
With the cost of housing going up, it might be a good time to think about owning your own home. If you are ready, willing and of course able to buy, now may make sense. If you’re not, NOW is the time to start getting ready.
Either way, we’re here to help! Call us at 888-33-0075!
