Rents have increased a lot this year!
The latest National Rent Report from Apartmentlist.com shows rents are currently rising at a much higher rate now than they did in the three years before the pandemic.
To quote from the report:
“Since January of this year, the national median rent has increased by 16.4 percent! To put that into context, rent growth from January to September averaged just 3.4% from 2017-2019.”
Rising rents are nothing new. In fact, the median rental price has increased consistently over the past 33 years.
Now, some financial experts will argue weather owning your home is an investment or an asset or not, because while it may built equity and act as a type of savings account you don’t see the benefits until you sell and to an extent that is true.
However, consider this… ZERO rent dollars will ever be returned to you. Ever. Paying rent is is no different than putting gas in your car or paying for dinner in your favorite restaurant. Once the gas is gone… you have to pay to fill the tank again. Once your dinner is over… tomorrow you’ll be paying for another dinner. And once the end of the month comes… you’ll owe for another month of rent.
So maybe renting is less money right now, but keep in mind how much renting can cost you each year as you miss out on not only building equity, and but also the benefit of avoiding future rent increases.