With Rents on the Rise – Is Now the Time To Buy?

Hey, it's Andy with the Mandel Team at RE/MAX and today we will discuss about renting vs. buying. 

According to recent data from Realtor.com, rent prices have jumped up over 8% compared to this time last year. That's crazy. If you think it's cheaper to rent than it is to buy, maybe it's time to reconsider. Don't believe me? Let's check out the chart.

According to the National Association of Realtors, the median price for a mortgage in America is now $1200, while the median price for rent is just under $1,600 per month. Keep in mind, that doesn't include principal and interest on the mortgage side, but still, the price to own your property is still cheaper than renting. And when you look at the median cost to rent since 1988, it's almost a straight shot up. Rents are not getting any cheaper. If you buy now, you can lock in a fixed housing payment for the next 30 years, and you're building an asset that you can pay down every single month.

You're building equity instead of renting, where your rent goes up, you just can't control it. There's nothing you can do. You don't have the investment, like you do when you own a property.

Bottom line, maybe it's time to consider buying instead of renting.