Are you among the many renters looking for a new place to live in 2022? Perhaps you’re relocating for work, want to live closer to family, or have another reason to move when your lease is up. Whatever the case, you may be shocked at the asking price for rent these days, especially if your landlord has kept your rate pretty stable. Before you get into a new apartment rental, learn more about rising rents and why this could be the year to buy a house.

Rent is on the Rise

It’s no surprise that rent has steadily increased for the past 30 years, along with the cost of everything else. But rent in 2021 grew astronomically. From January to November, the median asking rent increased by a staggering 17.8%. For perspective, that same period in pre-pandemic years averaged just a 2.6% increase.

2021 was far from normal for new renters and homebuyers alike. Yet, even as the pandemic simmers down, 2022 is expected to continue the trend. In fact, the 2022 National Housing Forecast projects rent growth of 7.1% between January and December. One reason rent keeps rising is because vacancies remain near historic lows of 5.7% to 6.8% compared to 7% or higher under normal conditions. This means if you’re planning to sign a lease this year, you’ll likely pay significantly more for a home rental than you have in the past.

Buy a Home as an Alternative to Renting

The predicament of continually rising rent might lead you to wonder about your alternatives. One option is to continue living where you are. But what if you have to relocate for work or your landlord is boosting your rate? In these situations, a better alternative is to buy a house.

One of the major perks of homeownership is that you can lock in a mortgage payment for the next 15 to 30 years. There’s no landlord to answer to, and your rate won’t increase every year. Plus, rent payments are gone forever, but mortgage payments are an investment. Considering that home equity has increased an average of $56,700 over the past 12 months, this could be a good investment indeed!

Of course, the reality is home prices are also on the rise. However, current market conditions are completely different than they were prior to the 2008 housing crisis. Many experts believe a crash is nowhere in sight, so it might not make sense to wait it out and pay high rent in the meantime.

In short, there are always financial risks when moving, whether you decide to rent or buy. But if you’re ready to buy, and you can afford to buy, and you want to buy, 2022 could be the year to pull the trigger.

If you’re ready to stop throwing away rent money and start building an investment, reach out to Vutech | Ruff, Corcoran Global Living. We’ll help you with every step of the home buying process. Browse our current listings of homes for sale in the Columbus area. Then, contact us at 614-897-0618 to speak with a knowledgeable Ohio real estate agent.