This article is for my fellow Millennials…
The Census Bureau recently released their third quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:
Over the past 15 years, rents have risen at a rate of 2.7% annually. According to Jonathan Smoke, Chief Economist at realtor.com:
“Low rental vacancies and a lack of new rental construction are pushing up rents, and we expect that they’ll outpace home price appreciation in the year ahead.”
The more rents increase the more difficult it will be for Millennials to save for down payments.
Check out this interactive map from Harvard University’s Center for Housing Studies showing how burdened Arizona residents are with the cost of rents… yikes:
Most Millennials have no idea that buying a house is, in most cases, cheaper than renting. They also don’t know that there are many loan programs available to soften the blow of a down payment.
BOTTOM LINE:
Rents are going up... Millennials just THINK they’re not qualified or THINK they don’t have a big enough down payment saved to stop renting.
-Briette
