Ownership: The Cure for Rent Discontent?

Clients often ask if now is a good time to buy a home, but it’s rare for anyone to ask if it’s a good time to rent. While we’d make the argument that the benefits of home ownership almost always outweigh those of renting, current market trends sharply underscore that today is most definitely not a prime time to rent.

Runaway Rents

The Census Bureau recently released their 2017 first quarter median rent numbers. Here’s an insightful graph showing rent increases from 1988 until today:

Rising Rent Graph

Clearly rent rates have steadily climbed and are showing no signs of losing steam. If you’re faced with making the decision of whether or not you should renew your lease, you might be pleasantly surprised at your ability to buy a home of your own instead. It’s a discovery more and more people weighing the buy or rent decision are making. With interest rates remaining low, buying now is a smart decision for many.

A Trend Toward Ownership

If you’re a potential homeowner, you’ll find yourself in good company. According to the latest report from the US Census Bureau, more Americans chose purchasing a home over signing a lease to rent in the first quarter of 2017. This marks the first time since 2006 that the number of new homeowner households outpaced the number of new renter households. Of the 1.22 million new households that were formed in the first quarter, 854,000 were new-owner households making the jump straight to homeownership rather than renting first, making the homeownership rate among new households 70%!

Bottom Line

When you weigh the long term benefits of home ownership- tax advantages, planting roots in a community, and stabilized housing costs- against the pitfalls of one of the worst renter’s markets Southern California has experienced, the path to ownership offers a clear set of financial gains. If you’re ready and willing to buy, let’s meet to explore the path to your property ownership options today!

About the Author

Shannon Jones has been selling real estate since 1998 and specializes in listing and marketing homes. She has consistently been one of the top Realtors in the Long Beach area. Prior to her award-winning career in real estate with the Shannon jones Team, Shannon has had successful careers in journalism and public relations. She holds a bachelors degree from UC Irvine and a masters degree from UC Berkeley. Shannon holds E-Pro, CDPE (Certified Distressed Property Expert), and PSC (Pre-Foreclosure Specialist) certifications. Shannon is very personable and maintains a very strong moral compass, always putting the best interest of home buyers/sellers above monetary goals. A California native, Shannon enjoys gardening, travel, reading, cooking and poker when she’s not selling homes MY DESIGNATIONS Lic# 01247705 | CDPE (Certified Distressed Property Expert) | E-Pro | PSC (Pre-Foreclosure Specialist) MY SERVICE AREAS Anaheim Bellflower Buena Park Carson Cerritos Cypress Downey Fountain Valley Garden Grove Huntington Beach La Palma Lakewood Long Beach Los Alamitos Los Angeles County Norwalk Orange County Rossmoor San Pedro Seal Beach Signal Hill South Bay Westminster

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