If renters in your area are on the fence about whether to buy, now might be a good time. Rent hit an all-time high last month, hitting a national average of $1,408, according to new data, which might make homeownership more attractive – but it may be the growing challenges of homeownership that are driving the increased popularity of renting.
According to a study from RentCafé and Yardi Matrix, rent rose nationally by 2.9% year over year and 0.9% month over month. Rent increased in 88% of the country’s 250 largest cities, stayed static in 10%, and decreased in only 2%.
Renting is gaining popularity among families, according to RentCafé, and two- and three-bedroom units have been the main drivers of rent growth so far this year. However, June’s increases were almost perfectly balanced among unit types, as demand for one-bedroom and studio apartments caught up to demand for larger units.
“None of the rental mega-markets of the country escaped steep rent increases this month,” RentCafé said.
Orlando saw the largest proportional increase, with renters paying an average of 8.4%, or $104, more per month than they did in June of 2017. Apartments in Tampa, Phoenix and Las Vegas cost between 6% and 7% more than they did last year.
It seems that higher rents would cause renters to at least consider the option of purchasing a home while rates have remained stagnant instead of spiking up as predicted 2 years ago. Check out the ABBA First Rates page.where you will still see that rates are in the 4’s for a 30 year mortgage. Go to TOOLS on the menu bar and use the Mortgage Calculator to figure your monthly payment or call us at 910-332-0650 and let us walk you through the total payment of your new loan.