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Is It A Good Time to Rent?

Tuesday, January 12, 2016   /   by Dan Malloy

Is It A Good Time to Rent?

People often ask whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.


 


The Census Bureau recently released their third quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:


Median Asking Rents | Simplifying The Market


A recent Wall Street Journal article reports that rents rose “faster last year than at any time since 2007, a boon for landlords but one that has stoked concerns about housing affordability for renters.”


 The article also cited results from a recent Reis Inc report which revealed that average effective rents rose 4.6% in 2015, the biggest gain since before the recession. Over the past 15 years, rents have risen at a rate of 2.7% annually.


Where are rents headed?


Jonathan Smoke, Chief Economist at realtor.com recently warned that:



“Low rental vacancies and a lack of new rental construction are pushing up rents, and we expect that they’ll outpace home price appreciation in the year ahead.” 



Bottom Line


According to the WSJ article:



“In general, the higher rents go, the more difficult it will be for young people to save for down payments, making them likely to rent even longer.”



One way to protect yourself from rising rents is to lock in your housing expense by buying a home. If you are ready and willing to buy, let's get together to determine if you are able to today!


 
Malloy Home Team at Premier Brokers International
9123 N. Military Trail, Suite 104
Palm Beach Gardens, FL 33410
561-876-8135
561-370-5736

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All listings featuring the RPBGFL MLS logo are provided by the Realtors of the Palm Beaches and Greater Fort Lauderdale, Inc. and BeachesMLS, Inc. This information is not verified for authenticity or accuracy and is not guaranteed. Copyright 2018 Realtors of the Palm Beaches and Greater Fort Lauderdale Inc. and BeachesMLS, Inc.