The decision to rent or buy a home is a very personal one—and what's right for you may not be right for somebody else. Still, if you're trying to choose between renting and purchasing your next home outright, it's a good idea to consider both the current real estate market and your own unique situation.
A Look at the Current Market
Since the coronavirus pandemic hit, the real estate market across the country has seen some significant changes. Property values have skyrocketed as demand has rapidly surpassed the supply of inventory. In fact, according to the National Association of REALTORS®, the median price for a single-family home increased by 7% across the country in 2020 alone.
All of this is great news, of course…if you're looking to sell a home. On the other hand, if you're thinking about buying, a combination of low inventory and increased prices could complicate things.
Could Renting Be the Best Option?
So while now may not be the most practical time to buy a home, the good news is that there are plenty of great rental options available. In fact, there are many reasons (aside from convenience and more readily available inventory) to consider renting instead of buying your next place.
Consider, for example, the fact that apartment living often comes with access to more amenities than you would have when buying a single-family home outright. Many apartment communities these days offer amenities such as a clubhouse with a gym/fitness center, a pool, trails, playgrounds, and the like. These are things that may come with an upcharge through an HOA in a neighborhood of single-family homes (if these amenities are included at all).
Meanwhile, renting also comes with some added flexibility; most apartment home leases last for about a year. After that time, you have the option to either renew your lease or look elsewhere for your next home. This makes renting a practical option for many who aren't quite ready to "settle down" due to career opportunities or other factors.
Likewise, many renters enjoy the peace of mind that comes with zero-maintenance living in an apartment home. When you purchase a home outright, you're generally responsible not only for the upkeep of the structure itself (siding, roofing, etc.)—but for repairs inside the home, like appliance and HVAC repairs. When you live in an apartment home, these are all things that your property manager and/or maintenance staff will take care of for you. This means you can worry less about unexpected maintenance issues affecting your finances.
And of course, when you choose to rent instead of purchasing a property outright, you save yourself from the stress and hassle of getting into a bidding war and all the other stressors that can go into buying a home. This includes the financial burden of saving up for a down payment, closing costs, and other expenses often associated with a home purchase. Likewise, many apartments offer quick move-in options, so you won't have to wait weeks or even months to get things settled.
A Few More Things to Consider
As you can see, renting offers a number of compelling advantages to buying a home—especially in today's real estate market. At the end of the day, however, it's all about figuring out what works best for you given your current life circumstances, finances, and other factors.
Typically, people who buy a home do so because they want to build up equity and have a place that's truly their own. And of course, this is a goal that's worthy of pursuing when the time is right for you. The reality, though, is that with current home values and demand being so high, it makes more financial sense for many people to postpone their home searches until the market balances out a bit.
Find an Apartment for Rent Today!
If you're interested in renting an apartment home in the Kansas City or Dallas Ft. Worth area, there are plenty of great options to choose from. From cozy studios to larger two-bedroom options, Price Brothers can help you find the community that's right for you. Contact us today to get started!