Apartment Rents Are Spiking: Is it Time to Buy?

TimetoBuy.jpeg

Homeownership has always been a rite of passage for young families. There’s a good reason why owning a real home, rather than an apartment, is “the American Dream.” It adds a sense of permanence and stability, and with the recent double-digit spikes in rental rates, and historically low mortgage interest, it is a better business decision than ever before. 

For homeowners who live in a master-planned community such as Devonshire, located just east of Dallas, the financial considerations - building personal equity rather than enhancing a landlord’s investment - is only part of the equation. Due to factors such as superior schools, excellent amenities, proximity to employment, shopping, and entertainment along with the energy-efficient (and therefore money-saving) design that is possible with current construction techniques.

For those families who want a hedge against the rapidly rising rents with a predictable mortgage rate, buying a home is a logical decision.

Why Apartment Rents Are Spiking

A “perfect storm” can be more than just a movie theme or clever metaphor. In the case of the astounding rise in apartment rents, this “storm” has been caused by several factors. According to several sources, including this one, “if you’re currently renting your place, you might see the price tick up when it’s time to renew your lease. Rent is forecast to be even higher this year than it would have been if the pandemic had not occurred.

“Throughout 2020, many renters were able to benefit from price reductions or even months of free rent as landlords struggled to fill empty units. But those concessions are gone, and landlords are hiking up prices as Covid-19 restrictions end and housing demand spikes.

“Housing costs were rising before Covid, but the coronavirus exacerbated the problem: The national median rent has increased by 11.4% so far in 2021, compared with just 3.3% for the first six months of 2017, 2018, and 2019, according to a report from “Apartment List,” a rental listing site. Average rent growth this year is outpacing pre-pandemic levels in 98 of the nation’s 100 largest cities.”

The report adds that apartment rent is surging for several reasons, including more certainty in the job market and young people moving out on their own as pandemic restrictions end.

Time to Move Up?

For those young families who have been diligently working from their kitchen table or that spare closet in the bedroom, received well-deserved increases in compensation for dealing with the challenges of the pandemic, and saved their money, now is an excellent time to consider buying a new home, rather than renting. 

Sure, navigating the residential market can seem daunting at first. However, the real estate brokers, builders, and developers in master-planned communities such as Devonshire are skilled in helping families get all the financial documentation completed and completing the tasks necessary to realize the American Dream. 

If you have built up your credit ranking and have access to sufficient cash for a down payment, add Devonshire to your list of top new home communities and click here to talk to the experts at Devonshire.