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4 Things Every Renter Needs To Consider

November 21, 2021

All Real Estate News

A stylish living room with a dark gray couch, a coffee table, a plant, and a floor lamp. The room has a cozy and contemporary feel with natural light coming in through the windows.
As a renter, you’re constantly faced with the same dilemma: keep renting for another year or purchase a home? Your answer depends on your current situation and future plans, but there are a number of benefits to homeownership every renter needs to consider.

Here are a few things you should think about before you settle on renting for another year.
 

1. Rents Are Rising Quickly

 
Rent increasing each year isn’t new. Looking back at Census data confirms rental prices have gone up consistently for decades (see graph below):
 
4 Things Every Renter Needs To Consider | MyKCM
 
If you’re a renter, you’re faced with payments that continue to climb each year. Realtor.com recently shared the September Rental Report, and it shows price increases accelerating from August to September (see graph below):
 
4 Things Every Renter Needs To Consider | MyKCM
 
As the graph shows, rents are still on the rise. It’s important to keep this in mind when the time comes for you to sign a new lease, as your monthly rental payment may increase substantially when you do.
 

2. Renters Miss Out on Equity Gains

 
One of the most significant advantages of buying a home is the wealth you build through equity. This year alone, homeowners gained a substantial amount of equity, which, in turn, grew their net worth. As a renter, you miss out on this wealth-building tool that can be used to fund your retirement, buy a bigger home, downsize, or even achieve personal goals like paying for an education or starting a new business.
 

3. Homeowners Can Customize to Their Heart’s Content

 
This is a big decision-making point if you want to be able to paint, renovate, and make home upgrades. In many cases, your property owner determines these selections and prefers you don’t alter them as a renter. As a homeowner, you have the freedom to decorate and personalize your home to truly make it your own.
 

4. Owning a Home May Provide Greater Mobility than You Think

 
You may choose to rent because you feel it provides greater flexibility if you need to move for any reason. While it’s true that selling a home may take more time than finding a new rental, it’s important to note how quickly houses are selling in today’s market. According to the National Association of Realtors (NAR), the average home is only on the market for 17 days. That means you may have more flexibility than you think if you need to relocate as a homeowner.

Deciding if it’s the right time for you to buy is a personal decision, and the timing is different for everyone.

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