Wednesday, January 19, 2022 / by Flr Team
Are you one of the many renters thinking about where you’ll live the next time your lease is up? Before you decide whether to look for a new house or another apartment, it’s important to understand the true costs of renting in 2022.
As a renter, you should know that the cost of rent has been rising since 1988, and has grown dramatically in 2021. According to ApartmentList.com, the national median rent has increased by a staggering 17.8% since January 2021, making it a far greater increase than the typical rent increases in recent years.
Rent is rising fast, and the 2022 National Housing Forecast from realtor.com projects prices for vacant units will continue to increase this year, being somewhat ahead of home price growth. This 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.
If you’re a renter facing rising rental costs, you might wonder what alternative you have. Have you considered homeownership? One of the many benefits of homeownership is that it provides a stable monthly cost you can lock in for the duration of your loan, plus your money won’t be going into someone else’s pocket.
If you’re planning to make a move this year, locking in your monthly housing cost for 15-30 years can be a major benefit. You’ll avoid the lingering question of whether you’ll need to adjust your budget to account for a possible increase in your monthly payments.
Homeowners also enjoy the added benefit of home equity. As a renter, your payment only covers the cost of your dwelling. When you pay your mortgage, you grow your wealth through the forced savings that is your home equity.
If you’re thinking of renting this year, it’s important to keep in mind the true costs you’ll face. Do you have room in your budget for a possible increase in monthly payments once your lease is up? Or is it time to consider making a move? Connect with one of our real estate professionals at Florida Lifestyle Realty to help consider your options and see how you can begin your journey to homeownership today.
Florida Lifestyle Realty