Rent or Buy?

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Real Estate Broker/Owner with Real Estate Teammates BK3322137

When is it a Good Time to Rent? Definitely NOT Now! | Simplifying The Market

When is it a Good Time to Rent? Definitely NOT Now!

People often ask whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.

The Census Bureau just released their second quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:

 

Median Asking Rent | Simplifying The Market

At the same time, a report by Axiometrics revealed:

“The national apartment market’s annual effective rent growth rate of 5.1% in June 2015 represented a 47-month high, and continued a streak of 5.0%-plus rent growth that is now the longest in at least six years, according to apartment market research. The effective rent growth in June 2014 was 3.7%, putting June 2015’s exceptional performance into perspective.

This is the highest rate since the 5.3% of July 2011. The metric has reached at least 5.0% for five straight months, the longest such streak since Axiometrics started monthly reporting of annual apartment data in April 2009.”

Where will rents be headed in the future?

Stephanie McCleskey, Axiometrics vice president of research, commented on the above report in anarticle by Real Estate Economy Watch:

“Rent growth is just shy of the post-recession peak, and the June metrics reflect the continued strength of the apartment market. The demand for apartments is still strong, despite the record number of new units being delivered this year.Tight occupancy is why landlords can push rents higher.”

Bottom Line

If you are ready, willing and of course able to buy, now may make sense.

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Rainer
230,624
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

renting is seldom a good idea when ALL things are taken into consideration. in any given perticular situation, of course this could be wrong.

Aug 13, 2015 03:04 AM #1
Rainmaker
212,530
Stefan Winter
Real Estate in IL & NV | Owner of Real Estate Web Tech | Daily Vlogger - Las Vegas, NV
Owner - Winter Group & Real Estate Web Tech

Rent right now is crazy, they have a new townhome apartment community here in Vegas. You can rent a 2 bed for $2300 or buy a brand new 2 bed 2.5 bath starter home from a builder right around 230k. With a FHA loan you'd be saving a lot of money and having your own free standing home.

Aug 13, 2015 03:05 AM #2
Rainmaker
1,415,329
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

This is always a tough question.  Rents ARE crazy right now, with vacancy rates in our area at almost 0%.  Due to my current nomad lifestyle,  I would like to be able to sell my home and rent but, financially, it doesn't make sense.  I don't really want the responsibility of home and yard maintenance (and leaving it empty for months on end) so I just hire the work done and pray for home security.  My home is paid for... so to get into a rental with who knows what price increases in the future... No thanks!  And for those who think a condo might be a good option... nothing in my city I'm interested in.   The answer to the buy vs rent is always... It Depends.  Everyones situation is different.  It isn't always financial either.  

Aug 13, 2015 08:27 AM #3
Rainer
150,519
Ed Macias
Real Estate Teammates - Miami, FL
Miami FL-REO Property Management Multifamily

Everyone has a valid point. It depends on the individual and their specific circumstances. I do believe that the majority feel renting is a waste of money and would rather own if at all possible.

Aug 13, 2015 11:35 AM #4
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Rainer
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Ed Macias

Miami FL-REO Property Management Multifamily
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