Are you one of the many renters considering where to live when your next lease ends? It’s not good news but the long-term outlook for rental prices doesn’t look promising. Experts say to expect above-average rent price gains in 2023.
“The U.S. rental market experienced its first single-digit growth over the past 13 months. The median rent growth across the top 50 metros slowed to 9.8% year-over-year for 0-2 bedroom properties but is still three times as fast as the growth rate seen just before the pandemic hit in March 2020,”~ Realtor.com’s latest data for rental affordability.
We are also seeing the rising trend for the cost of renting apartments in Greenville, SC. Take a look at the chart below.
Apartment Rents in the Greenville Area
This chart only reflects the cost of renting a home in the greater Greenville area up until 2020. The cost of renting an apartment has skyrocketed during the pandemic. According to Rentcafe.com, the average rent for an apartment in Greenville as of July 2022 is $1,370.
Rents are rising fast
The 2022 National Housing Forecast from realtor.com projects prices for vacant units will continue to increase this year:
“In 2022, we expect this trend will continue and fuel rent growth. At a national level, we forecast rent growth of 7.1% in the next 12 months, somewhat ahead of home price growth . . .”
This means that if you’re planning to move to another rental property this year, you’re likely to pay a lot more than in previous years.
Homeownership Provides an Alternative to Rising Rents
The challenge of rising rental costs can be a burden for renters. If you’re a renter and looking for an alternative solution, consider homeownership. Yes, buying a home is a significant financial commitment but if you are going to look at the many benefits of homeownership, it makes more sense to buy a home than rent. Read more: Buying A Home In Greenville Is More Affordable Than Renting
One of the many benefits of homeownership is it provides a stable monthly cost you can lock in for the duration of your loan. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“. . . fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.”
If you’re planning to move to Greenville or any part of the Upstate, SC this year, locking in your monthly housing costs for 15-30 years can be a major benefit. You’ll avoid wondering if you’ll need to adjust your budget to account for annual increases.
Homeowners also enjoy the added benefit of building wealth thru home equity, which has grown substantially right now. In fact, the latest Homeowner Equity Insight report from CoreLogic shows the average homeowner gained $60,000 in equity between the 2nd quarter of 2021 and the 2nd quarter of 2022. As a renter, your rent payment only covers the cost of your dwelling. When you pay your mortgage, you grow your wealth through the forced savings that is your home equity.
Check with your Greenville realtor
Down payment assistance programs have helped many homebuyers achieve their homeownership goals. So if you’ve found a loan but still need help with the down payment? Check with your Greenville SC realtor to find out if they recommend a specific program or partner. Many local governments and non-profit organizations target local borrowers and often offer grants and advance loans based on borrowers’ specific requirements.