Buying a Home Guide from Cory and Brandi Wilks

Rising Rental Prices Can Add Up Fast

Working with a real estate professional who keeps an eye on what the experts are saying about the housing market is a key factor to staying informed and making the best possible decisions for your family. If you’re renting, this is more important than ever. As noted in the National Rent Report, “National average Y/Y rent growth is a modest 1.7%.” This year-over-year increase may not sound like much, but it can add up – fast . The math on how much extra it will cost you over time surely doesn’t lie. Here’s an example: On a $1,500 rental payment, an increase of 1.7% adds a cost of approximately $25 per month. When multiplied by the 12 months in a year, that’s a $300 overall annual increase. The price continues to multiply when you rent year after year, as rental prices rise. While $25 per month may not sound substantial, for many households, this value is equivalent to being able to afford a gym membership, a couple of streaming service subscriptions, or a family pet’s food budget. History shows how average rental prices have been increasing each year, and even when they’ve leveled off for a month or two on occasion, the increase over time has proven to be quite significant. The graph on the following page shows how rents have grown since 2012 alone:

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