• Home
  • Jay's Blog
  • The Case To Buy, Not Rent: Home Rental Prices Rise at Slower Pace in October

The Case To Buy, Not Rent: Home Rental Prices Rise at Slower Pace in October

Last week I highlighted a problem with the extremely low number of first-time home buyers–particularly the low level of first-time buyers from the millennial generation. This week brings some compelling news for those considering buying rather than renting a home: rental prices are slowing.

Zillow released a report showing that median rent prices increased by just 4.5 percent from a year ago. While this may seem like a steep increase, it actually marks a steady deceleration from increases of 5.3 percent in September and 6.2 percent in August.

home-values-rents-october-2015-1-7d972b

This drop in rent prices represents a strong argument for buying rather than renting. Just for context, Zillow reported the nationwide median rental price was $1382 per month in October — at 3.75% on a 30 year loan a potential homeowner could service almost a $300,000 mortgage for $1382 per month.

With the Federal Reserve inching closer and closer to raising interest rates and the National Association of Realtors predicting increases in home prices over the next twelve months, it is clear that now is the time to make the jump from renting to owning.

Trackback from your site.

Leave a Reply

About our blog

Our agents write often to give you the latest insights on owning a home or property in the Chattanooga Metro Area area.

News