The Cost of Renting

The Cost of Renting

The current housing market in America is crazy.  We are starting to see a slow down in the home sale rate.  Interest rates have gone up over the last 3 months (although still below historic averages).  Americans have seen prices of homes increase typically 12-20% since the beginning of 2021.  The “R” word continues to be danced around (Recession).  There are lots of factors that would cause a potential home buyer to take a step back and potentially want to wait it out and see what happens.  This trend across the country holds true here in the Triangle area.  However, home prices and the home buying market is not the only market that has seen a drastic increase over the last few years.

If you are considering staying on the sidelines and renting for a little while til the housing market makes a drastic turn in favor of the buyer, then you will have a long wait.  The Raleigh/Durham real estate market is still very low in inventory in comparison to demand and until that changes, we can’t foresee prices to go down.  We are seeing the rate of pricing increases slowing down from the steep incline of 2021 which is a good thing.   What you really need to know is that if you are thinking of renting, those prices have gone up just as dramatically.

Wake County rentals in 2020 had a median rental price of $1595/month.  That rate increased in the first 6 months of 2021 to a median of $1695/month.  The second half of 2021 (July - December) saw yet another increase in the median rental rate to $1800.  The beginning of 2022 was no different….the first 4 months saw a rate of $1895 and then finally the last 90 days in Wake County (May - July 2022) have had a median rental rate of $2000/month.  Currently (8/5/2022) there are 437 homes available for rent with a median rate of $2075.  In 1.5 years, rental rates have seen an increase of more than 30%.  

When you rent, you are still paying a mortgage…..just not yours.  Your monthly payment is at 100% interest.  You don’t have control over your monthly payment going up at the end of the lease, and based on recent history, it will go up.

When you are a homeowner, your payment is fixed.  Homeowners receive tax benefits and build equity in their home.  You rent a home for 5 years and move, you simply pack your belongings because that is all you take with you.  When you own a home for 5 years then sell and move, you take your belongings along with the equity you built up in the home.   

It is proven that the one key component to wealth building is home ownership.  

Do you want to consider buying a home?  Do you have questions about the process?  Do you want to find out if you qualify to purchase a home?  We can help you with this or more.  Give our team a call today and let us help walk you through the early steps and down the road to home ownership. 

919-300-5421