In today’s volatile housing market, staying in a rental might makes sense for plenty of people.
This holds true even though the inventory of homes for sale continues to increase, mortgage rates continue to inch up, and the median listing price is 18.7% higher than last year.
And if you’re a renter paying affordable rent, moving makes even less sense. According to a recent Realtor.com® report, rental prices across the U.S. set a new record. In June, rents reached a median of $1,876 in the nation’s largest metropolitan areas.
So if you’re among the many people choosing to renew a lease rather than looking for a new place to live in this unpredictable market, don’t worry. Remember that what goes up, must come down—eventually.
In the meantime, we’ve gathered some tips on what you can do to make the best of your rental situation.
Focus on building your down payment
Remaining in a rental means you can and should focus on minimizing your existing debt—and building up your down payment.
“You have the opportunity to build your down payment so that you can afford a better house and a better interest rate,” says Gunner Davis, a real estate agent with Coldwell Banker Realty in Tampa, FL. “Target saving a minimum of 20% down payment for your desired house, which will make your homebuying process easier.”
Depending on your timeline, and your lease, you might even want to consider investing some of the money you’re putting aside.
