Are you one of the many renters thinking about where you’ll live the next time your lease is up? Before you decide whether to look for a new house or another apartment, it’s important to understand the true costs of renting in 2022.
As a renter, you should know rents have been rising since 1988 (see graph below):
In 2021, rents grew dramatically. According to ApartmentList.com, since January 2021:
“. . . the national median rent has increased by a staggering 17.8 percent. To put that in context, rent growth from January to November averaged just 2.6 percent in the pre-pandemic years from 2017-2019.”
That increase in 2021 was far greater than the typical rent increases we’ve seen in recent years. In other words – rents are rising fast. And the 2022 National Housing Forecast from realtor.com projects prices for vacant units will continue to increase this year:
“In 2022, we expect this trend will continue and fuel rent growth. At a national level, we forecast rent growth of 7.1% in the next 12 months, somewhat ahead of home price growth . . .”
That means, if you’re planning to move into a different rental this year, you’ll likely pay far more than you have in years past.
Homeownership Provides an Alternative to Rising Rents
If you’re a renter facing rising rental costs, you might wonder what alternatives you have. If so, consider homeownership. One of the many benefits of homeownership is it provides a stable monthly cost you can lock in for the duration of your loan.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“. . . fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.”
If you’re planning to make a move this year, locking in your monthly housing costs for 15-30 years can be a major benefit. You’ll avoid wondering if you’ll need to adjust your budget to account for annual increases.
And that is just the starting point for the benefits of buying a home in Grays Harbor rather than renting one, “says Ashlynn Saenz, broker for Grays Harbors Oly Pen Real Estate. “Homeowners enjoy the added benefits of gaining equity while investing in their homes. And that is no small consideration. Recent studies indicate the average homeowner, over the last year, gained close to $60,000 in equity.”
To amplify Ashlynn’s observation. As a renter, your rent payment only covers the cost of your dwelling. Any equity gained through rental payments belong to the landlord.
If you’re thinking of renting this year, it’s important to keep in mind the true costs you’ll face. Contact Grays Harbor's Oly Pen Real Estate so you can see how you can begin your journey to homeownership today.
Oly Pen Real Estate has a team of trusted real estate professionals to help you navigate changes in our industry. We have a watchful eye on Grays Harbor market so give your Oly Pen Real Estate Team a call today at 360.249.8187 or stop by our office 141 S. Main Street in friendly Montesano, WA and discuss your expectations today!