According to recent data from realtor.com, median rental prices have reached their highest point ever recorded in many areas across the country.
The report found rents rose by 8.1% from the same time last year. As it notes:
“Beyond simply recovering to pre-pandemic levels, rents across the country are surging. Typically, rents fluctuate less than 1% from month to month. In May and June, rents increased by 3.0% and 3.2% from each month to the next.”
If you’re a renter concerned about rising prices, now may be the time to consider purchasing a home.
Monthly Rents Are Higher Than Monthly Mortgage Payments.
When you weigh your options of whether to buy a home or continue renting, how much you’ll pay each month is likely top of mind.
According to the National Association of Realtors (NAR), monthly mortgage payments are rising, but they’re still significantly lower than the typical rental payment.
NAR indicates that the latest data on homes closed shows the median monthly mortgage payment is $1,204.
By contrast, the median national rent is $1,575 according to the most current data provided by realtor.com.
In other words, buyers who recently purchased a home locked in a monthly payment that is, on average, $371 lower than what renters pay today (see our graph).
Rents Are Rising Sharply, and They Continue To Increase.
The difference in monthly housing costs when comparing renting and home buying today is significant.
But with ongoing concerns about a potential housing bubble, many would-be homebuyers are also wondering about the future of rental prices and whether waiting could cost more in the long run.
If we look at historical Census data as a reference, the median asking rent has risen consistently since 1988 (check out this graph).
The rise in rent over time clearly shows one of the significant advantages of homeownership over renting: stable housing costs. Renters face increasing costs every year.
Today’s biggest advantage? When you purchase your home, your mortgage rate is locked in for 30 years, meaning your monthly payment stays the same over time.
That gives you welcome peace of mind and predictability for many years ahead.
Bottom Line
With rents continuing to rise across the country, it might be time to stop paying more for less.
If you’re a renter in Chicago, now could be the right moment to explore homeownership. Buying a home may not only save you money, but it can also provide long-term stability.
Want to see what’s possible?
Explore available condos for sale with KM Realty Group LLC. From first-time buyers to seasoned investors, our team is here to guide you every step of the way. We’re located at 111 N Wabash #1734, Chicago, IL 60602. Call us at (312) 283-0794.
Let’s talk about your next move — and make it count.
