Rising Rents Add Pressure to Buy
Many renters are making moves toward homeownership as quickly rising mortgage rates and rents have them feeling increased pressure.
Average monthly rents climbed more than 14% year over year in December 2021, reaching $1,877. Some larger cities have seen rents surge more than 30% over the past year.
Economists point to homeownership as a way to stave off inflation and build wealth, The Wall Street Journal reports. But higher rents are making it tougher to save for a down payment to buy a home.
Some renters may find a mortgage payment, with still historically low interest rates that are under 4%, may cost them about the same as or less than their increased rent costs.
National Association of Realtors, Realtor Magazine
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