According to Apartment List’s National Rent Report, rental prices went up $300 per month in 2021. And sources like MBS Highway expect this trend to continue in 2022, albeit at a slightly slower pace.
If you’re currently renting or are considering renting, while you may have a roof over your head, renting doesn’t help you build wealth like homeownership does.
For example, that extra $300 per month you’re spending on rent, based on current rates, would be like having a $70,000 mortgage. Meaning if you were to use that extra $300 per month to purchase a house, you would have an additional $70,000 in buying power you could put towards purchasing your dream home.
Additionally, when you purchase a home, that property continues to appreciate, helping you build wealth. But if you decide to rent, the only person building wealth through real estate is your landlord.
Put your location in the comments below and I will send you a breakdown of what this looks like in your specific market, then we can chat to see if homeownership is the right option for you.