Rents Are Rising...But Still Cheaper Buying A Home

Rents are higher than Ozzy Osbourne when he bit that bat, but rents are still cheaper than home buying! 🦇 Disclaimer: no bats were harmed in the creation of this article.

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The nation's average rental price hit a record high for the 16th consecutive month in June. However, renting is still a better deal than splurging on a new pad. 🏠

Here’s Five Fast Facts on why renting is cheaper than buying:

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1. 🚀 Oh, You HIGH high - Current average rents are 27.6% higher than they were in 2020. Nationwide, studio apartments are up 15.1%, one bedrooms are up 13.8%, and two bedrooms are up 13.6%. NYC shoe boxes were not reached for comment, but they are (you guessed it) still overpriced. (As if you needed another reason to avoid the city, right?)
2. 🕳️ Mind The Gap - Between January and June, the gap between monthly starter home costs and monthly rent price widened by about 26%, or $483.
3. 🤠 High-ho, Silver - Thankfully, only one Midwest city made the top 100 list for most expensive rent: Chicago (No. 46 – $2,904 on average). 
4. 🆙 Majority Rules - Here’s the crazy part, out of the 50 largest U.S. metro areas, 38 had lower rents than monthly starter homeownership costs in June. That's 16 more cities with high homeownership costs than were on the list in January. So, renting seems to be the budget-friendly plan, for now.
5. 👎 Sugar, We're Goin' Down - Mortgage applications decreased week over week during the month of June, reaching the lowest level since 2000. So, no matter where you live (city, ‘burbs, countryside) don’t expect new neighbors anytime soon.

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🔥Bottom line: We can't help but to think that a big bubble is about to burst. These outrageous prices are staggering and on a scale from one to Let It Snow, it doesn't show signs of stopping. The surplus of available homes is on the rise as well, making this a fun little recipe for disaster. Markets always correct themselves, but this soap opera calls for an extra big bucket of popcorn.

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Are you a renter? Will you be buying a home anytime soon? Let us know by connecting with us on Social Media and be sure to share this newsletter with any friends & coworkers!

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