Myth 3 : Renting Makes More Financial Sense
Think renting is a better bet from a financial perspective ? You may want to think again . History shows rental prices are on their way up and that means your monthly housing costs will likely rise each time you sign or renew a lease . Homeownership can provide longer-term stability .
Rents Are Going Up Again
According to Census data , rents have risen consistently for decades . And that trend is continuing this year . Data from realtor . com shows just how much rental prices are surging throughout the country . The graph below highlights rental unit price increases over the past year :
Rental Prices Are Skyrocketing Increase in Rents from February 2021 to February 2022 17.1 % 17.1 % 16.4 % 16.2 %
Overall Studio 1 Bedroom 2 Bedroom
Source : realtor . com
If you ’ re a renter and plan on signing a new lease , your monthly costs are likely to go up when you do . Those rising costs can have a big impact on your financial goals , including any plans you ’ re making to save for a home purchase .
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