Why Buying A Home Makes More Sense Than Renting

Are you debating whether you should continue renting or if you should buy a home? If so, then take into consideration that rental affordability is still as challenging as it has been for years. This is because, historically, rent prices are consistently rising. In fact, data from the Census shows that the price of rent has been climbing steadily since 1988.

The Effects Of The Pandemic

Data from a rental report from Realtor.com shows that rent continues to rise today, even if it is at a slower pace than it was during the pandemic.

In March 2023, the U.S. rental market experienced single-digit growth for the eighth month in a row... The median asking rent was $1,732, up by $15 from last month and down by $32 from the peak but is still $354 (25.7%) higher than the same time in 2019 (pre-pandemic).

With rental prices much higher now than they were before the pandemic, owning your home may be the better option, especially if the long-term trend of rents increasing each year continues. Homeowners that have a fixed-rate mortgage can lock in their monthly mortgage payments for the duration of their loan.

Owning A Home Could Be More Affordable If You Need More Space

Let’s face it – whether or not you choose to buy a home soon depends on your finances and how much you are able to pay towards housing each month. The graph below displays the median rental payment data from Realtor.com with the median mortgage payment data from the National Association of Realtors.

As you can see, depending on how much space you need, it is typically more affordable to own than to rent if you need more than two bedrooms. So if you are wanting to live in a home that has two or more bedrooms to accommodate your family’s needs, give you more breathing room to store your belongings, or dedicate extra space to practice your hobbies, it might be time to consider becoming a homeowner.

Homeownership Wins In the Long Run

Aside from protecting you from rising rental costs and predatory landlords while being more affordable when you require more space, owning your home also allows you to start building up equity. Plus, the more equity you have, the higher your net worth will be.

You build equity as you pay off your loan and as homes appreciate in value, so the longer you own your home, the more equity you’ll have. The equity you build up can set you up for success later on in life because you can use it to fuel a move to an even bigger home or more desirable location down the line. That is why, according to Zonda, the top reason why millennial homeowners have been buying their homes rather than paying rent. Even Gen Zers are starting to make moves in the housing market.

Southwest Florida May Be In Your Future

If you are ready to stop paying rent and purchase your first home in Southwest Florida, reach out to realtor Dianne Anderson today to explore your options and pursue your dream of homeownership.

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