Friday, December 7, 2012

Rent On The Rise

When you are deciding whether or not to buy a home, one consideration is the cost of  renting an apartment, townhouse or home. So where are rental prices heading over the next few years?
Rental prices usually increase by about 3 percent annually. Trulia just released their Trulia Rent Monitor where they revealed that rental prices have increased dramatically in the last year.
“Nationally, rent gains continued to outpace home price increases in October, rising by 5.1 percent.”
Based on the concept of supply and demand, many believe rental prices will continue to substantially increase over the next few years. The long-run 30-year average increase in multifamily rental households is 200,000 each year. Over the next few years, those numbers will more than double to over 500,000 each year. Freddie Mac in their latest report, Multifamily Research Perspectives, projects housing demand going forward.
“Given assumptions consistent with economic growth slightly slower than long run averages, multifamily demand is likely to be in the range of 1.7 million net new renter households between now and 2015.”
Looking at the recent statistics prices are on a consistent and steady rise in the Washington metro area and now could be the perfect time to lock in your long term housing expense by buying your own home. If you have more questions don't hesitate to call or email us to talk more in depth about renting vs buying.

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