Renting in 2016
Despite the fact that buying a home is a more affordable option than renting in most areas of the country, 2016 is expected to see the amount of people renting remain the same or even grow. Let’s take a look at the state of renting in 2016.
While the price of renting actually is more expensive than buying a home in the majority of counties in the country, people are still choosing to rent rather than buy a home. There are many reasons for this trend including the upfront costs of buying and the commitment it takes to settle down in one area for at least a few years.
This question keeps cropping up as well: How are renters expected to save for a home when rental rates can come close to 40% of their monthly income? The demand for properties continues to grow but the silver lining in 2016 is that the job market is expected to grow and increase compensation of employees at more reasonable levels. However, despite the increase in wages, rental rates are also expected to increase throughout the year making renting a home a hardship for many.
Other issues many will face in 2016 are likely increasing interest rates paired with rising home prices. Now may be the time to consider jumping into the housing market and purchasing a home. Talk to your trusted mortgage professional today!