Renting a home has long been viewed as a more affordable alternative to buying property.
But with rent prices rising—and rising fast—that may no longer be the case.
According to the most recent rental data from realtor.com, in September 2021, the median rent in the US was up 13.6 percent year-over-year—the second month in a row with double-digit increases. This rapid increase in rental prices is more than four times the 3.2 percent rental price growth rate in March 2020—just before the COVID-19 pandemic hit the US.
So, what does this mean for you? As rents continue to increase—and rental properties become less affordable—buying a home may not only be a better long-term investment, but in some cases, a less expensive alternative. So if you have been thinking about making the transition from renter to homeowner, now could be a great time to make a move.