Now Is Definitely Not A Good Time To Rent

Dated: 06/10/2016

Views: 269

When Is It A Good Time To Rent? Definitely NOT NOW! | Simplifying The Market

People often ask whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.


The Census Bureau recently released their first quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:


A recent Wall Street Journal article reports that rents rose “faster last year than at any time since 2007, a boon for landlords but one that has stoked concerns about housing affordability for renters.”


The article also cited results from a recent Reis Inc. report which revealed that average effective rents rose 4.6% in 2015, the biggest gain since before the recession. Over the past 15 years, rents have risen at a rate of 2.7% annually. 



Where are rents headed?


Jonathan Smoke, Chief Economist at realtor.com recently warned that:


“Low rental vacancies and a lack of new rental construction are pushing up rents, and we expect that they’ll outpace home price appreciation in the year ahead.”  

When Is It A Good Time To Rent? Definitely NOT NOW! | Simplifying The Market


Bottom Line


NAR’s Chief Economist, Lawrence Yun had this to say in the latest Existing Home Sales Report:


 "With rents steadily rising and average fixed rates well below 4 percent, qualified first-time buyers should be more active participants than what they are right now."


One way to protect yourself from rising rents is to lock in your housing expense by buying a home. If you are ready and willing to buy, let's meet up to determine if you are able to today!

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Julie Baldino - Owner-Managing Broker

Julie Baldino is a seasoned veteran of the Pacific Northwest real estate industry, and has consistently been in the top 10% in sales for over a decade in 2 states. In order to accommodate a rapidly ex....

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