We know that due to the housing market decline over the past five years, people are hesitant to buy. Is renting really better, though? Although purchasing a home is not an easy decision and requires some cash upfront, rental prices are about to skyrocket, so take these findings into consideration.
Earlier in the week the Harvard University Joint Center for Housing Studies released a report which found:
Rental markets are now tigethening, with vacancy rates falling and
rents climbing. With little new supply of multifamily units in the
pipeline, rents could rise sharply as demand increases.
In addition, the Spring 2011 Housing Report released by hotpads.com states that rental listing prices across the US climbed 7.4% while for sale listing prices retreated 8.8% within the past 365 days.
According to Trulia, buying a home has become more affordable than renting in almost four out of five major cities.
“aspring homeowners should focus their energies on locking down a low mortgage rate sooner than later. While home prices are unlikely to return to pre-cash levels, today’s low interest rates will likely rise thanks to inflation and spikes in the Fed rates,” said Ken Shuman, Head of Communications at Trulia. “AS the government winds down its role in the mortgage market, higher mortgage interest rates will be inevitable”.
Just a few things to think about when considering renting vs. buying!