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Rising Rents and What that Means for You
August 23, 2018 | Chandler DeMouy
Rental rates nationwide are on a continuing upswing, and they have been since midyear 2010. Year-over-year increases have averaged 3.7% so far this year, according to the Labor Department, putting the national average rent at an all-time high of $1,405. The issue here, other than the increasingly lofty prices, is the fact that the cost of living continues to outpace any growth in wages. In the past 12 months the national average wages have only increased by 2.7% - and after factoring in inflation, one could argue they haven’t risen at all.
While our area is not seeing the massive increase in rents congruent with the rest of the nation, we are still seeing increases in most of our markets - the highest being Foley.
What this means for the average consumer is that if you are not making more money, you are still paying more. With the same money that you are paying in rent, you could be putting it towards one of the greatest assets one can invest in, real estate. For roughly the same amount of money you spend on rent every month, you could purchase a much larger house, or downsize and actually put a couple bucks back in your wallet! Coupling the above paragraph with all of the different no, or low down payment mortgage options available in our area - home ownership is a lot more in grasp than most think! In fact, the majority of Baldwin county is available for USDA financing, a 0% down home loan for eligible properties and borrowers.
With interest rates set to rise over the next few months, now really is the perfect time to buy. If you have been considering it but have been hesitant, I would at least look into. There are some great local lenders that are more than happy to help guide you in the process of getting approved for a home loan.