The national average shows rentals are up about 3.9% this year. In our area of Evanston IL which is a College town rentals in areas close to public transportation, eating establishments, stores and general areas of interest are harder to come by. Incomes are not keeping pace with rent increases and that makes it even tighter for people who haven’t purchased property.
New York City, Miami, Los Angeles, San Francisco and Boston are the five most expensive rental cities and others are rising at sometimes an even higher rate the 3.9% mentioned. In the last year Houston, Miami, Boston, Tampa-St. Petersburg, Fla., and San Diego experienced the highest rent increases. As an example in the last year Boston has gone up 5.5%.
Forbes magazine reported this year that buying is much more affordable than renting in all of the 100 largest metro areas in the nation. According to mortgage lender Freddie Mac, buying is an average of 41% cheaper than renting nationwide.
This is a good reason to save up and make the plunge into home ownership. As we have all been told, the American dream is to be a home owner. Because of the rising rental prices renters should compare the price they are spending per year and getting nothing out of it compared to what it would really cost to become a home owner.
Please contact your local Realtor and ask for a comparison chart so you can learn for yourself. You will get it back when you sell.