Buying is Tough…Renting is Tougher
We know it’s tough buying a home, but is renting even tougher?
We have discussed in the past how it’s a challenging time to buy a home with low inventory and high competition from cash buyers, but the alternative to rent is just has hard, with fewer benefits.
A recent report found rental prices continue to go up about 14% year over year. Utah has the 23rd highest rent in the country, with average rent being about $1,465 a month.
The Apartment List National Rent Report for July found a 2.5% increase in rental prices from June. Prices went up by 10.3% compared to this time last year and up 9.4% compared to the pre-pandemic level from March 2020.
Price hikes are a frustrating reality for renters. For many it feels like every time they turn around their rent is going up.
At least with a home purchase your payment remains fixed.
More renter frustration comes from knowing that the money they pay could be going toward an investment of their own but instead pays for someone else’s mortgage and equity. Renters don’t get the benefit of paying towards principal.
Renting comes with a lot of other issues too. I’ve heard many stories from clients who had dreadful renting experiences. One client’s roommate situation did not work out and they had to find a new place to move to in less than a month. Another client’s landlord decided to capitalize on the market and sell their house, giving them less than two weeks’ notice to find somewhere new to live.
Another client I recently worked with shared with us their push into purchasing came from their A/C breaking in the middle of 100-degree summer day and their landlord refused to fix the issue immediately. With a home purchase you don’t have to worry about fixing issues on someone else’s time, it’s all up to you.
The rental market is pretty competitive as well. It can be a struggle to even find an available rental, let alone one in a neighborhood you prefer and in your price range.
Affordability is a big reason why many people think can never become homeowners. But the average mortgage is significantly less than the average rental.
Other renters worry they won’t qualify for a purchasing due to student loan debt or medical bills. However, you’ll never know what you qualify for unless you contact a mortgage professional like me. I can review your situation and if now isn’t the time for a pre-approval we can set up a plan to get you on the right track to homeownership.
Now is the time to get out of the rent trap! Give me a call and let’s get you started on the path to homeownership.
