Arizona rent prices have risen in the past year by a lot. According to the latest National Rent Report from Apartmentlist.com, rents are increasing at a much higher rate when compared with the three years before the pandemic when demand was lower:
Urban development is a fact of life – and with it, Arizona rents have been rising. In the last 33 years alone, the median rent has increased from $613 to at least $1407 per month.
Have you've been renting in Arizona for a while and want to keep doing so? Keep in mind that Phoenix rent prices are bound to go up next year. This is why choosing whether or not to start saving for a down payment on your place is something you should give some serious thought to.
The Money Arizona Renters Stand To Lose This Year
Homeowners might not think so, but their monthly mortgage payments ALSO work as an investment. Existing in the form of equity, the more you pay down your home loan, the higher your property's worth gets and the more valuable it becomes!
Arizona Home prices are going up, which increases the value of homes, and homeowners tend to get a lot of equity from this.
The CoreLogic Homeowner Equity Insights Report found that homeowners have benefited from the increased home value this past year, resulting in a higher equity average of over 51k
Renters don't get the same benefit as tenants because their rental payments only help cover shelter and any amenities that may come with the rental home. Your rent won't come back to you as an investment.
You rented your property this year, which meant you likely paid more in rent than you did last year. Not only that, but because you didn't buy a home this year, you missed out on the potential wealth gain of at least $51,500.
Bottom Line
With renting, you could end up spending a lot more in the next few years. The rent increases each year, and you don't get the long-term payoff from owning a home.
Let's chat today to discuss the advantages of buying over renting.
