Rent Is Spiking - It's Time to Buy
After dipping in spring 2020 at the start of the pandemic, rent prices are experiencing a huge increase, even surpassing pre-pandemic levels. According to data provided by Realtor.com, rent prices are higher than they were before the health crisis in 44 of the country's 50 largest metropolitan areas. The median rent price reached a record high of $1,575 in June, which is an increase of 8% compared to one year ago.
Adding to those numbers is an increase in rent prices in smaller cities as well. Workers who fled urban areas during the pandemic for extra safety, space, or privacy caused an influx in renters. The fastest-growing rents are typically in areas that are affordable and not far away from high-priced urban spots.
For instance, the California city of Riverside saw rent prices for a studio increase by 10% and a two-bedroom apartment jump by 32%. Comparing that to a two-bedroom apartment in Los Angeles, the Riverside place is about $600 to $700 cheaper. For renters who spend time working remotely, that cost savings is attractive.
Industry insiders claim the elevated price won't cool off anytime soon, so it's a smart idea to consider buying if possible. If you need help dealing with the intricacies that come with buying a home, reach out to an experienced real estate professional.
Sources: News.move.com, Businessinsider.com, Cbsnews.com