Renting vs. Owning: the age old question! If you’re wondering whether it makes sense to move out of that rental and buy a home this year, here are some things to consider:
Rents Are Still Rising
Rents continue to rise year on year, although not as quickly as during the height of the pandemic. Homeowners are able to lock in a fixed-rate mortgage, keeping their monthly payment the same for the length of the loan, which is typically 15-30 years.
In March 2023, the U.S. rental market experiences 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%) high than the same time in 2019 (pre-pandemic).
Data from the last rental report from Realtor.com
Rental Rates Are Higher Than Mortgage Rates for Larger Properties
Looking for more space? The increase in rental rates is especially true in larger properties, where monthly lease payments are surpassing the average monthly mortgage payment. That’s right, you’re typically going to be paying MORE per month to rent a home than to BUY one.
Build Your Own Equity
Instead of paying rent to help build your landlord’s equity, by owning a home you will build your own equity. This grows your net worth and allows you to have more options in the future if and when you decide you need a bigger or better place.
Hire A Three Sixty Realtor to Help!
There is a lot to consider when deciding on renting vs. owning, especially if it’s your first time jumping into homeownership. There is a lot of helpful information on our blog to get you started. The Realtors at Three Sixty are your trusted partners. Reach out! We are here to help, and we are excited to get started with you!
Start a conversation with us today!
Auburn/Opelika | 334.887.3601
Birmingham | 205.767.6010
Lake Martin | 256.827.5253
Information courtesy of the Alabama Association of REALTORS®