Rent increases are forcing more people to buy

More renters are opting to buy
Rising rental prices are forcing many to purchase homes.

Many renters across the country are learning of significant rent increases at lease renewal time. In some cases, we have even heard of rental amounts increasing by 50% or more. As for the Miami, FL market, average rents surged more than 30% over the past year. At the national level, average monthly rents climbed more than 14% year-over-year in December 2021. This puts the average national rental amount at $1,877/month.

Home ownership becomes more appealing

It is no secret that inflation is currently out of control. One way to stave off inflation while building wealth is through home ownership. With rental prices continuing to increase and mortgage rates also increasing, it is currently a race against time for many renters. Of course, as rents continue to rise it becomes even more challenging to save money for a home purchase. In addition, as mortgage rates continue to rise, buying power diminishes for many would-be home buyers. Therefore, if you are currently renting in a market that you plan on living in for a considerable amount of time, a home purchase should be considered as a viable option.

Summary

The good news is that oftentimes renters realize that a mortgage payment with today’s historically low interest rates may cost them the same or even less than what they were paying for in rent. Of course, the added benefit is that they will also be building equity in their property. In markets such as South Florida we continue to expect increased demand from both in-state and out-of-state buyers. Therefore, if you are considering calling The Sunshine State your home for the foreseeable future, you may want to consider a home purchase.

At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!

By natasha moore

REALTOR® with Live South Florida Realty, Inc.

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