Renting is becoming increasingly more expensive in San Diego
According to a report recently released by Zillow, rents in April of 2015 were 4% higher than the year before. It’s the fastest increase we’ve seen in 24 months, overrunning home prices which only rose by 3%.
The affordability of rent is becoming increasingly more expensive. As of right now, it doesn’t look like it’s going to slow down anytime soon. “This is here to stay,” said Svenja Gudell, senior director of economic research at Zillow. “We will continue to see rental increases, and affordability will worsen before it gets better.”
Rent being on the rise isn’t something new, especially to Southern California residents. The trend has been steadily rising since 2000 and unlike home prices, which took a hit when the economy took a dive in 2007, there’s been no downward trend in rent.
What has surprised us most is that even while taking into account rising rents, the demand for rentals continues to rise alongside prices. Should you buy or rent? This is a question most of us will likely face in our lives, whether buying a house makes more financial sense than renting a home. There is a way to understand the financial impact of buying vs. renting.