All across the country rent prices are skyrocketing, and according to a Zillow report, are even higher than some costs of home ownership. It’s no different here in the Inland Empire. In fact, the Riverside-San Bernardino –Ontario metro area is ranked Number 5 for all rent gains, with a 4.2% increase in the first quarter of 2015. This is shocking news, but why is it the case?
There’s a shortage of available Rentals.
It’s plain and simple case of supply and demand; vacancy rates are at a very low level, which continues to push rents higher. People are renting longer, as the housing crash undoubtedly scared some would be homeowners, and many others are downsizing. This puts a lot of pressure on the rental market, as more and more people are choosing to rent.
What should you do?
Low Mortgage rates really do make buying a house a more attractive option. On a national level, the average homeowner spends 15.3% of total income a month on their mortgage, as opposed to the 30% renters pay. Sometimes, in higher rent areas, a tenant will pay closer to 50% of their monthly income on their rent. That’s rough. So what’s the short answer? Buy a house while you still can.