People often ask whether or not now is a good time to buy a home. No one ever asks whether it is a good time to rent..?
However, we want to make certain that everyone understands that today is NOT a good time to rent.
The Census Bureau recently released their third 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.”
Bottom Line
According to the WSJ article: “In general, the higher rents go, the more difficult it will be for young people to save for down payments, making them likely to rent even longer.”
One way to protect yourself from rising rents is to lock in your housing expense by buying a home. If you are willing to buy, give us a call at (949)395-0960 and we can help you determine if you are able to today!
About Jaleesa Peluso, Laguna Beach Realtor
Jaleesa Peluso is real estate agent with Berkshire Hathaway. Jaleesa and her team specialize in representing buyers, sellers, tenants and landlords in South Orange County. Thinking of buying, selling or renting? Call us now at (949)395-0960!