Rent prices for single family homes swelled during the first half of 2022, hitting a national average of $2,495 a month — a 13.4% increase compared to the same period in 2021, according to a new report from national real estate brokerage HouseCanary.
Realtor.com predicts that rent prices will increase, anticipating a 7.1% growth in national rent in 2022 along with a much more competitive rental landscape. Renters are disappointed. According to Realtor.com® data, the average wages for the first quarter of 2022 climbed by just 5.2% from the previous year, thus the cost of renting surpassed earnings.
But perhaps most importantly, Realtor.com economists think that renting could become less affordable than homebuying. Some landlords are looking to raise rent or even sell their homes either to offset pandemic losses, or take advantage of the increased appreciation seen in the housing market and sell. Less homes to rent means increased rental prices.
This housing market slowdown should offer current renters a chance to consider their next steps in the home-buying process. With more homes on the market, and more home buying options for buyers with low or no down payment, it mightbe a good time to jump in and avoid the rising cost of renting.
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