Rent Versus Buy
Are rents sincerely on the rise? The answer is that it really depends on where you are and what you are considering renting. I have yet to see any real evidence that SFR residences are renting at higher monthly rates than this time last year. On the flip side, apartment rents do appear to be rising in select markets and this eventually could be good news for the market as a whole. However, lets look at this more realistically. When you read or hear about the cost of renting verus buying, consider that the cost of buying is decreasing as values continue to drop. Thus, in markets like Southern California where values have dropped upwards of 40%, the cost of buying has dropped substantially. As a result, even if rents drop in 2011 in Southern California, there is no guarantee the cost of buying still may not be cheaper than renting. Thus, if you utilize a “buy versus rent calculator”, factor in potential market appreciation or depreciation to more accurately distinguish between the two.