Posted by Home Point Financial on
Rents are on the rise, and it doesn’t look like they are going to go down any time soon. Since 2000, we have seen a steady rise in rent, with more recent years showing a steady climb. Renting has been a popular option for small families and individuals in the past as they work to save up for a down payment on a home. With renting, the renter only has to pay month-to-month, rather than dishing out a down payment. Unfortunately, as rents continue to rise, less people are able to save this extra money each month- making the dream of home ownership seem farther away.
Image via Homes With Jean
With rents at an all time high, 2016 is looking like it will be the most expensive year in history to rent. While most people expect sky high rent in big cities such as New York City and San Francisco, other places are not immune. In fact, rents have increased faster than home values in 20 out of 35 of the largest markets in the United States. Demand for rentals is catching up with supply, meaning rent can be expected to continue rising over the next few years.
Renting is going to continue to rise in areas all over the US this year - costing Americans nearly 37% of their income on average, while those in “high-income areas” are spending nearly 50% of their paycheck each month on rent.
Real Estate experts are recommending that renters should take the plunge into the home buying market in 2016. With federal interest rates still historically low, 2016 is the best time to buy a home. Renters may even be surprised to see how low their mortgage rates might be, and what is really required of a down payment.
The dream of home ownership might be more realistic than you think. Learn more about investing in a home, rather than wasting your hard-earned money on rent each month. At Home Point Financial Corporation, we are here to help you through this process. Contact us today to get started on this journey.