Renting is often looked at as a more affordable alternative to homeownership, but in many areas of the US, that is actually not the case.
According to recent data from realtor.com, rents are rising fast and hitting new highs in metro areas across the country. In July, the median rental price in the US was $1607—a 9.8 percent increase from July 2020.
And not only are rental prices increasing, but they are increasing to the point that, in many areas, renting is now more expensive than owning. With a median rental price of $1607, rent is now 15.5 percent more expensive than mortgage payments for a starter home in 24 of the 50 largest metro areas.
So, what does this mean for you? If you have been putting off buying your first home because you have thought renting is cheaper, it may be time to reexamine that logic. Depending on where you live, there is a good chance that buying a home may actually be more affordable than your current rental.