1: Cost of renting:According to recent studies, rents have increased dramatically in recent years. Vacancy rates are low, and the growth in renter households is high. This means that landlords have greater pricing power when setting rents.
2: Cost of not owning:The average rate of house price appreciation over the past 20 years has been over 3% per year. In the Click here to view house price trends in your local market past five years, house price appreciation in many markets for starter homes has been even greater.
At 3% annual house price appreciation, a $10,000 down payment on a $200,000 house could grow to $40,000 over a five-year time period.
That growth could be money that you would have lost by not owning a home.
Contact me if you’d like me to run a buy vs. rent analysis for your specific scenario!