You usually hear the stories about homes being too expensive for renters, but are renters being forced into buying?

Over the past month, I’ve spoken to a number of agents who consistently work with renters. And the stories are mostly the same, especially during this time of the year: rental prices have increased significantly. Apartment rentals that were $1000/mo are now $1300/mo (or more). And for the would-be renters in the $700-800 range, there is just not inventory.

But are renters being forced into buying? Short answer: yes. In a recent survey from Homelight, agents found that as prices continued to rise for rentals, those renters found other opportunities for homes. Those opportunities are buying!

A theoretical: your rent is $1500/mo. Your apartment community sends you the 60 day reminder about renewing your lease. Except this time, they want $1900/mo for the apartment you are already in. Same square footage. Same floor. Exact same unit! $400 x 12 = $4800. So almost five grand for the same place.

Same theoretical: that renter speaks to a mortgage lender. Based on credit score, existing funds, and occupation, that lender informs the renter that they can afford their own home for their CURRENT rent amount. But this time, you’ll earn equity by being a home owner. So why would that renter continue to rent?

You may wonder why I’m stating this as a theoretical. BECAUSE MANY RENTERS DON’T MAKE THE PHONE CALL TO A MORTGAGE LENDER!

You may discover that renting makes most sense, even at a higher price. But you’ll never know until you talk to a professional! Remember, Realtors aren't hiding information from you. You just have to ask for it!