Rents are skyrocketing, and while the labor market is strong, salaries are not keeping pace with inflationary pressures combined with ever increasing rents. Whether you're looking to buy for the first time and saving for a downpayment or those looking to sell and then rent, the challenge of renting is unstable housing 
costs. Ideally you could budget a specific amount of money per month for housing however volatile rental costs are making this extremely challenging. Below we review the state of the market and offer some common sense ways to stabilize housing costs through homeownership.
State of the Market
According to the ATTOM Data 2022 Rental Affordability Report, owning a home is more affordable than renting in the majority of the country.
". . . Owning a median-priced home is more affordable than the average rent on a three-bedroom property in 666, or 58 percent, of the 1,154 U.S. counties analyzed for the report. That means major homeownership expenses consume a smaller portion of average local wages than renting. "
Additionally, rental prices are surging. The latest Core Logic Single Family Rent Index, below, shows the fastest year-on-year growth in 16 years. The principal economist at CoreLogic, Molly Boesel, posited,
"Single-family rent growth hit its sixth consecutive record high. . . . Annual rent growth . . . was more than three times that of a year earlier. Rent growth should continue to be robust in the near term, especially as the labor market continues to improve. '
If you are renting, you may have experienced rental increases firsthand. Short of living in a rent controlled property the best way to stabilize your monthly housing costs is buy buying using a 30 year fixed rate mortgage. Currently in many markets throughout the country buying a median price home actually uses less of a homeowners overall monthly income than does renting.
Should I Buy Now?
Mortgage rates are increasing, but they are still relatively low. As of Monday, February 21, the national average 30-year fixed mortgage APR is 4.140% and the average 15-year fixed mortgage APR is 3.450%. Economists are anticipating interest rates to increase in 2022, which include mortgage rates. If you are considering financing a home, it is better to obtain financing now, and buy a home, than to wait and pay more rent, and more interest, later.
Buying in The Triangle
Inventory at the end of 2021 was down by 42% compared to the same time the prior year. As a result, the home prices are up, but there are more houses coming on the market and we are still finding homes for our buyers. Whether you are looking for a new construction home or an existing home, there are still options. We have some tips for new buyers who are prequalified, and if you are not already prequalified, this is the first step to take. My NC Homes has helped hundreds of buyers in The Triangle secure their ideal home, whether as first time buyers, or older buyers who want to right-size. If you would like to buy now, contact a member of our team to explore the local options.
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