Today we’re going to take a closer look at whether it makes more sense to rent or buy a home in today’s market. At 0:43 in the video above, you can see that back in the early 2000s, rental rates decreased as home prices rose. Under those conditions, renting was a more attractive option because it was cheaper in comparison to what it costs to buy.
"Rent is only going to go up over time."
If you take a look at what’s happening currently, the price per square foot is skyrocketing, making rental rates spike. The expectation is that the price you’d pay for rent today is less than what you’d pay a year or two down the line because that’s the trend. With a home purchase, you are able to lock in a 15- or 30-year rate so your payment stays the same for the duration of the loan. Rent is only going to go up over time.
Last month alone, there was a 15% increase in the cost per square foot for renters.
Each situation is different, but I would love to chat about yours if you’re renting or considering a purchase. Don’t hesitate to reach out via phone or email. I’d be happy to answer any other questions you might have.