Are you considering whether to keep renting or buy a home in South Florida this year? Rental affordability has been a challenge for many years and continues to be so. Historically, rents trend up over time. Census data shows that rents have been climbing steadily since 1988. According to the latest rental report from Realtor.com, rents continue to grow today, although at a slower pace than at the height of the pandemic:
“In March 2023, the South Florida rental market experienced single-digit growth for the eighth month in a row . . . The median asking rent was $2,182, up by $12 from last month and down by $23 from the peak but is still $446 (25.7%) higher than the same time in 2019 (pre-pandemic).”
With rents much higher now than in pre-pandemic years, owning your home in South Florida could be a better option, especially if the long-term trend of rents increasing each year continues. Homeowners with a fixed-rate mortgage can lock in a monthly mortgage payment for the duration of their loan (typically 15-30 years).
So, if you’re looking for a place with two or more bedrooms to accommodate your household, provide more breathing room to spread out your belongings, or dedicate the extra space to practice your hobbies, it might make sense to consider homeownership in South Florida.
Owning a home in South Florida also allows you to start building your own equity, which in turn grows your net worth. Home values typically rise over time, and as you pay off your mortgage, you build equity. That equity can set you up for success later on because you can use it to help fuel a move to an even bigger space down the line. According to Zonda, the top reason millennial homeowners bought their home over the past year was to build their own equity instead of someone else’s.
So, if you’re trying to decide whether to buy a home or continue renting in South Florida, work with a trusted real estate agent to explore your options. We’d be happy to refer you a great one. With rents rising, it may make more sense to pursue your dream of homeownership. And of course, unless you’re buying the home with cash, reach out to us here at Loan Wolf Lending to get preapproved today! Apply Today by clicking here!