Why Renting Might Not Be Your Best Option In 2023
If you’re in the Greater Fort Meade MD area and are due for a lease renewal this year, now might be a good time to touch base with The Roskelly Team to see how the numbers look for your personal situation. We’ve got great local lenders that can review your financial information and give you all the information you need to compare the cost of renting versus buying to see which makes the most sense for you.
Rental affordability is a big issue in our area and while rental prices increase, there is no benefit to your long-term plan to pay someone else’s mortgage when you could be gaining equity in your very own home.
There are other advantages as well including being able to accommodate your pets, the pride of home ownership and choosing you exact neighborhood and price range.
The latest rental report from Realtor.com shows rents are continuing to grow which means you’ll get less home for the same amount of money.
“In March 2023, the U.S. rental market experienced single-digit growth for the eighth month in a row . . . The median asking rent was $1,732, up by $15 from last month and down by $32 from the peak but is still $354 (25.7%) higher than the same time in 2019 (pre-pandemic).”
Owning a Home Could Be More Affordable if You Need More Space
The graph below uses national data on the median rental payment from Realtor.com and median mortgage payment from the National Association of Realtors (NAR) to compare the two options. As the graph below demonstrates, depending on how much space you need, it’s typically more affordable to own than to rent:
Homeownership and Equity
Homeownership not only shields you from rising rent costs, and gives you tax benefits, being a homeowner comes with equity gains that are like cash in your pocket when you sell. You can use that equity for home upgrades, paying off debt or investing in another home. Rent won’t do that for you.
Bottom Line
If you’re trying to decide whether to buy a home or continue renting, let’s connect to explore your options. With rents rising, it may make more sense to pursue your dream of homeownership. The Roskelly Team would love to help you find your perfect place!
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