As the economy continues to open back up from the pandemic, we will continue to see inflation picking up and, in turn, rent prices rising. Current supply chain disruptions combined with shortages of workers and materials have caused the pipeline of new rentals to stall. This has led to a classic case of low demand and short supply, driving up rent prices.
On top of this, there is a booming demand for young adults to move out of their parents’ homes or away from their roommates to live independently post-pandemic. With work from home here to stay, more and more individuals realize they need their own space and flexibility. What they don’t realize is how much money they could save by choosing to buy instead of rent.
Buying > Renting
Undoubtedly, the housing market has become incredibly competitive throughout the pandemic. Working from home and stimulus checks combined with record-low interest rates and a seller’s market have contributed greatly to this competitiveness. Now, with interest rates on the rise, there’s an even greater push to buy now than ever before.
Why You Should Buy Now
Purchasing a home is one of life’s biggest milestones and accomplishments. With rent currently on the rise, most mortgages are cheaper than rent right now. Instead of paying $1,800 a month on a studio apartment, you could build your own brand new, single-family, new construction home for $1,800 a month. If rent prices surpassing mortgage payments aren’t convincing enough, here are four additional reasons why you should buy now.