Soaring Rental Rates Make Home Ownership Even More Attractive
Since ancient times, people have been renting space to provide a roof over the head of their family. This practice continues today with about 36 percent of the American population renting their primary residence. Unfortunately, soaring rental rates may spell bad news for many renters.
The newest report from Zillow states that renters should be prepared to pay rent in the amount of up to 30.2 percent of their monthly income. This is a devastating figure for many renters, and it represents the highest percentage ever. While this figure shows rent increases from last year in 28 of the 35 metropolitan areas that Zillow tracks, higher rents may be found throughout the entire country.
Owning May Prove More Affordable
A limited supply of houses for sale and difficult lending standards have produced a great many renters, and the current rise in rental rates is due to this strong demand for rental property. Those who are able to find a home that they are interested in and navigate the road to a mortgage may expect to pay only 15.1 percent of their monthly income to purchase their own home.
Now is the Time to Buy and Sell
With rents on the rise, many renters will be looking to buy their own home. Those who’ve been waiting for a good time to sell their home or want to avoid high rent payments by purchasing their own home should visit their local realtor today.