If your lease is ending in 2022 and you are wondering where you are going to be living in a few months time, you are not alone! There are many options to consider – re-signing, finding a new rental or maybe even homeownership. No matter what your ultimate decision is, it’s helpful to look at the data on what is coming for rent prices in 2022.

As we are sure you know, rent is and has been on the rise for many years. It seems that every-time it comes time to re-sign a lease; there is an inevitable price increase. So, of course we expect an increase, but the magnitude of the growth we have seen in recent pandemic years is record breaking.

Data from Apartment List shows that we have seen an 18% increase in rental prices in 2021! To put that into perspective, the average national rent of $1,309 is now $119 greater than where projections assumed it would have been had it stayed in line with the average growth rates of previous years. The next highest rent increase we have seen in one year was in 2018 when rent increased 3.2%. 2021 outpaced this number by 5 times.

For 2022, experts expect that rental prices will go up 7.1%. Will this increase impact you and your budget? If you are wondering what alternatives you may have, consider homeownership. Owning a home will allow you to lock in a fixed mortgage for a specific period of time. This means no surprise rental increases that either force you to adjust your budget or force you to pack up your cozy home just to unpack all over again in a new place that will likely leave you in the same situation in a few years time.

Not to mention, in 2021, homeowners gained $56,700 in equity. Paying your mortgage doesn’t solely go towards giving you a place to live; it contributes to your investment and building wealth. https://dianecastro.com/homeowners-use-that-equity/

If you are curious about how much home you can afford, let’s connect and get you started on your journey as a homeowner today!