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I want to offer you all some advice, and this is coming from an article that I recently read on CNN. You can find that same article here, or you can read my summary below.
The point I'm trying to make is that rental prices are increasing, and affordability for renters is dropping fast with no end in sight.
Rent prices have been increasing since 2000, and unlike home prices, which took a hit when the real estate bubble popped, rent prices have had nothing in the way to stop them from rising.
Svenja Gudell, senior director of economic research at Zillow, says that because incomes haven't risen alongside increases in rental prices, you have to spend more and more of your monthly income on rent and it's growing into a national concern.
In 20 out of 35 markets, rent is increasing faster than mortgage rates.
Here in LA County the rental rates increased by 5.6% from last year, but we're lucky the increases weren't in double digits like they were in San Francisco and Denver.
Low mortgage rates are helping first-time buyers purchase, but large rent checks each month are making it harder for people to save up for a down payment.
On a national level, homeowners are paying 15% of their annual income for housing, while renters are shelling out 30% of their earnings to put a roof over their heads.
This is why now is the time to purchase a home if you have the ability to do so. Even if you cannot afford a home right now, I urge you to get into contact with me to determine a way for you to take the necessary steps towards homeownership.
A home is an incredible investment for the future, and right now is a great time to invest in one.
