You deserve to know the truth about what renting is costing you.
Today, I’m going to talk about how to avoid the renter’s trap in 2023. If you’re a renter, you face an important decision every year: Renew your current lease, start a new one, or buy a home. Before you dive too deeply into your options, it helps to understand the true costs of renting moving forward.
In the past year, both current and new renters saw their rental rates go up. Based on information from Realtor.com, three out of four renters who have moved in the past 12 months reported seeing their rent increase. If you look back at historical data, that shouldn’t come as a surprise. That’s because, according to the census, rents have been rising fairly consistently since 1988. If you’re considering renting in 2023, it’s worth weighing whether that trend is likely to continue.
In the 2023 housing forecast from Realtor.com, experts predict that rents will continue climbing by about 6.3%, which is above the historical average. This means that if you’re planning to rent again this year and you’ve not yet renewed your lease, you may pay more when you do.
“It helps to understand the true costs of renting.”
If you’re looking for more stability, it could be time to prioritize homeownership. One of the many benefits of owning a home is that it provides a stable monthly cost that you can lock in for the duration of your loan.
Freddie Mac said, “Monthly rent payments may increase over time, but a fixed-rate mortgage will ensure that you’re paying the same amount each month.” With a fixed-rate mortgage, your interest rate is locked in for the life of the loan. Those steady payments would allow you to budget wisely and make plans for the future.
Lastly, homeowners enjoy the added benefit of home equity, which has grown substantially. The latest Homeowner Equity Insight report from CoreLogic shows that the average homeowner gained $34,300 in equity over the last 12 months. As a renter, your rent payment only covers the cost of your dwelling. When you pay your mortgage on a home, you grow your wealth through the forced savings in your home equity.
If you’re thinking about renting this year, it’s important to consider the true costs that you’ll face. Let’s chat to see how you can begin your journey to homeownership today. Call me at 1-(800) 722-2585. I look forward to speaking with you.
