It is likely that more people will be taking a shot at buying a home, with home ownership regaining its appeal as rents head higher. A recent article at CNN Money states that rents will rise over 7% in the next few years and climb thereafter mainly due to the echo boomers electing to not purchase homes.
A real estate research firm reported average apartment rents UP 2.7% last year, while the national vacancy rate went below 5% for the first time since 2001.
In addition, with little new residential and multifamily construction taking place, those displaced by foreclosure are added to the rental market mix.
Apartment rental costs have historically been about 10% lower than after-tax home ownership costs. That difference began shrinking in 2010 and now apartment rents are about 15% higher than home ownership costs.
Increasing rents, plus very affordable home prices and near record low mortgage rates, have made home buying cheaper than renting in most areas, spurring on first-time buyers.
Bottom line: this is an excellent opportunity to own real estate, whether it be a primary residence, single family or multifamily rentals.
Please contact me at 206-355-1706 or via email, if you would like to learn more about buying in today’s housing market.
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