What’s More Painful Than Purchasing a House Right Now… RENTING!

Filed under: Market Comentary

What is more painful than buying a home right now, even with interest rates high and housing prices going up year over year? It’s renting!

Double-Digit Increases in Rent Costs

We have a report on rent costs around the country. The lowest metro areas are seeing numbers in the mid-teens of increases in pricing, and San Diego County came in with the highest increases of rent prices in California, with prices going up in the 20%+ range.

Florida is getting crushed right now. Miami was #1 on the list with an increase of 45% in rental prices!

You’re Going to Spend Money on Rent or a Mortgage

I understand that home buying isn’t for everyone right now. It’s getting to a spot that people can’t get a house that they are remotely interested in. But you need to live somewhere, and it is going to cost you money one way or the other. And rent prices are going up more than mortgage payments in some areas!

It’s something to think about. Not only do you need to look at rent prices right now, but also consider what might happen in the future. We don’t know what will happen next year. But it’s possible that rent prices might continue to increase.

But I can tell you for sure that rent will be significantly higher in 10 years from now. On the other hand, your 30-year fixed mortgage will be the same. You might see your taxes go up a little bit, but overall costs will be fairly predictable. Plus, your monthly payment is chipping away at your mortgage so you can build equity.

Personalized Recommendations for Getting a Mortgage Right Now

I’m still a big believer in focusing on the long-term benefits of home ownership. Build the equity right now and it can definitely pay off in the future.

I understand the homeownership isn’t great for everyone. But I wanted to put it out there to help everyone see the reality of what is happening. I’m here to chat with anyone about the real numbers, helping them work through the possibilities that might help them get into a home despite the current conditions.

That’s what I love about the mortgage business: numbers don’t lie! Either the numbers work or they don’t. So, we can take a look to find an objective solution for each family. If you have questions, reach out to me any time.

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