Year-Over-Year Rental Prices on the Rise
Looking ahead, 2020 is projected to be a strong year for home
ownership. According to the Freddie Mac Forecast,
“We expect rates to remain low, falling to a yearly average of 3.8% in 2020.”
If you’re currently renting, 2020 may be a great time to think about
making a jump into home ownership while mortgage rates are low.
As noted in the National Rent Report,
“the national rent index increased by 1.4 percent year-over-year.”
With average rents on the rise, this year-over-year increase may not
sound like much, but it can add up – fast. The math on how much extra
it will cost you over time surely doesn’t lie.
Here’s an example: On a $1,500 rental payment, an increase of 1.4%
adds an additional $21 dollars per month to your payment. When
multiplied by the twelve months in a year, it’s a $252 overall annual
increase. The price continues to multiply when you rent year after
year, as rental prices rise.
History shows how average rental prices have been increasing each
year, and there doesn’t seem to be much end in sight. Here’s a look at
how rents have grown since 2012 alone:Why not lock down your monthly
housing expense, and at the same time build additional net worth for
you and your family? If you’re thinking about buying a home, consider
the financial benefits of what home ownership can do for you,
especially while the market conditions are strong and current mortgage
rates are low.
With average rents continuing to rise, now may be a great time to
stabilize your monthly payment by becoming a homeowner and locking
into a low mortgage rate. Let’s get together to discuss how taking
advantage of the current market conditions might work for you.