Avoid the Rental Trap in 2022 

Avoid the Rental Trap in 2022 
by Kevyn Pitts - October 11, 2022

Are you one of the many renters who are now pondering your housing options for the time after your current lease expires? It is essential that you have a solid understanding of the real expenses involved in renting in the year 2022 before you make any decisions regarding your housing situation.

You, as a tenant, should be aware that rents have been steadily increasing since 1988. In 2021, rentals increased significantly. ApartmentList reports that since January 2021:

"The national median rent has risen by an astounding 17.8 percent. In comparison, rent increase from January to November in the pre-pandemic years of 2017-2019 averaged just 2.6%."

This rise in 2021 was significantly more than the average rent increase in prior years. In other words, rents are rapidly increasing. And realtor's 2022 National Housing Forecast predicts that unoccupied unit values will continue to rise this year:

"In 2022, we anticipate that this tendency will persist and underpin rent rise. Nationally, we anticipate a rent increase of 7.1% over the next 12 months, slightly outpacing home price increases."

Therefore, if you want to move into a new rental this year, you will likely spend far more than in previous years.

Homeownership Provides an Alternative to Rising Rents

If you're a tenant facing increased rent, you may be wondering what your options are. Consider homeownership if so. One of the numerous advantages of homeownership is that you may lock in a predictable monthly payment for the length of your loan.

According to National Association of Realtors (NAR) Chief Economist Lawrence Yun:

“. . . fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.”

If you plan to relocate this year, locking in your monthly housing bills for 15 to 30 years might be a significant benefit. You won't have to worry if you need to change your budget to allow for yearly inflation.

Homeowners also have the additional benefit of home equity, which has expanded significantly in recent years. In fact, according to CoreLogic's most recent Homeowner Equity Insight study, the average homeowner earned $56,700 in equity over the past year. Your rent simply covers the expense of your housing as a tenant. When you pay your mortgage, your wealth increases due to the forced savings represented by your home equity.

Bottom Line

It is important to take into consideration the actual costs involved if you are considering moving into rented housing this year. Get in touch with a real estate professional in your area to find out how you can take the first step toward becoming a homeowner right away.

Early Mold Detection 5 Signs to Look for in Your Property
Early Mold Detection: 5 Signs to Look for in Your Property
Mold thrives in moist areas such as ceilings, roofs, windows, insulation, plumbing, or air ducts. This fungus can seep into your home through leaks, vents, and open entries. Mold can also grow on carpets and furniture in the aftermath of ...
Thinking of Selling in Temple Hills Here's How to Do It Yourself and Save
Thinking of Selling in Temple Hills? Here's How to Do It Yourself and Save
Selling your home in Temple Hills can be an exciting yet daunting experience. You might be eager to move on to the next chapter, but navigating the complexities of the real estate market can feel overwhelming. The prospect of realtor ...
Is Note Selling Right for You A Beginners Guide to Weighing the Pros & Cons
Is Note Selling Right for You? A Beginner's Guide to Weighing the Pros & Cons
The world of investing can be vast and complex, filled with a multitude of options. One strategy gaining traction in recent years is note selling. But before diving in, it's crucial to understand what it entails and whether it aligns ...
Finding the Right Realtor When Selling During Divorce Qualities to Look For in 2024
Finding the Right Realtor When Selling During Divorce: Qualities to Look For in 2024
Selling a house during a divorce can be a complex and emotional process. You're likely navigating a sea of legalities, facing financial adjustments, and managing the stress of emotional upheaval. In this situation, finding the right realtor can make a ...
Cash for Burned Houses Quick Solutions for Texas Homeowners
Cash for Burned Houses: Quick Solutions for Texas Homeowners
A house fire can be a devastating event. The emotional toll of losing your home is immense, and the process of rebuilding can feel overwhelming. If your Texas home has been damaged by fire, you're likely facing a mountain of ...
1 2 3 86
Prudential Cal strives to provide the most detailed information about the real estate industry. We assist people in making the best decisions possible by offering unique insights into the global real estate market and advice for both homebuyers and sellers.
Additional Information
Copyright © 2024 Prudential Cal. All Rights Reserved.
DMCA.com Protection Status
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram