Every year, many renters ask themselves the same question: Should I continue renting, or is it time to buy a home? If you’re a renter in the Northern Bay Area, chances are you’ve asked yourself that question at least once, and it’s likely because you’ve faced an increase in your monthly housing costs over time. After all, according to Census data, rents have risen consistently for decades.
To make an informed and powerful decision, the first step is understanding what’s happening in today’s housing market so you can determine which option is the better long-term financial decision for you.
Rents Are Going Up Again This Year
Rents across the country continue to skyrocket and the Bay area is proving to be no exception to this trend. Data from realtor.com shows just how much rental prices are surging throughout the United States. The graph below highlights rental unit price increases over the past year:
If you’re a renter in Marin or Sonoma County and plan on signing a new lease, your monthly costs are likely to go up when you do so. Those rising costs can have a big impact on your financial goals, including any plans you’re making to save for a home purchase.
Homeownership Offers Stable Monthly Costs
Of course, one of the key benefits of owning your home is that you’re able to lock in and stabilize your payments for the duration of your loan. That’s not the case when you rent.
While rents are already on the rise, there’s a good chance many people will see their rental costs increase even more this year. As Danielle Hale, Chief Economist at realtor.com, says:
“With rents already at a high and expected to keep going up, rental affordability will increasingly challenge many Americans in 2022. For those thinking about making the transition from renting to buying their first home, rising rents will remain a motivating factor. . . .”
So, if you’re ready to become a homeowner, waiting any longer may not make financial sense. Instead, escape the cycle of rising rents and enjoy the many benefits that come with homeownership today.
Starting your JOURNEY towards homeownership can pay off significantly this year. Our team at Journey Real Estate takes pride in understand each of our client’s unique circumstance so that we can help them personalize a winning strategy. Collectively, our team has several decades worth of experience serving San Francisco, Marin County, Sonoma County, and the greater Bay Area. We study the nuances of the Bay Area housing market and are fluent in the latest trends. If you’re thinking about purchasing a home, we’d love the opportunity to work as your trusted real estate partner.