On Cape Cod, if you’ve been lucky enough to find a place to rent, chances are you’ve asked yourself this question at least once lately, as it’s likely your monthly housing costs have risen. After all, according to Census data, rents have gone up consistently for decades.
If you’ve been looking for an affordable place to rent, you know how difficult that is. You may be wondering, if purchasing a home is a better plan.
To make an informed and powerful decision about buying a house, the first step is understanding what’s happening in today’s market, so you can determine which option is the better long-term financial decision for you.
Rents Are Going Up Again This Year
Make no mistake, rents are skyrocketing. Data from realtor.com shows just how much rental prices are surging throughout the country. The graph below highlights rental unit price increases over the past year:
The Fair Market Rent (FMR) for the Cape/Barnstable County for a two bedroom home this year is $1,879! (That could be a pretty decent mortgage payment.)
In 2021, the FMR was $1,667.
Homeownership Offers Stable Monthly Costs
One of the key benefits of owning your home is that you’re able to lock in and stabilize your payments for the duration of your loan. That’s not the case when you rent.
With rents on the rise, there’s a good chance many people will see their costs increase even more this year. As Danielle Hale, Chief Economist at realtor.com, says: “With rents already at a high and expected to keep going up, affordability will increasingly challenge many Americans in 2022.”
Starting your journey can pay off significantly. We know it’s a big step. And you probably have well-meaning relatives and friends advising you to not make a move. But, by continuing to pay rent, all you’re doing is paying your landlord’s mortgage.
Have questions about whether this if your time? We’d be happy to answer them. Let’s talk at 508-360-5664 or firstname.lastname@example.org.
We can also refer you to a number of reputable lenders, who can give you excellent advice about your financial options.
In addition, you can receive a copy of our e-guide for Home Buyers, which is available by clicking here.
It’s important that you have the right information to make an educated and informed decision.
Mari and Hank