According to recent data from realtor.com, median rental prices have reached their highest point ever recorded in many areas across the country, including Las Vegas, Nevada. The report found rents rose by 8.1% from the same time last year. As it notes:
“Beyond simply recovering to pre-pandemic levels, rents across the country are surging. Typically, rents fluctuate less than 1% from month to month. In May and June, rents increased by 3.0% and 3.2% from each month to the next.”
If you’re a renter in Las Vegas and you’re concerned about rising prices, now may be the time to consider purchasing a home.
Monthly Rents are Higher than Monthly Mortgage Payments
When you weigh your options of whether to buy a home or continue renting in Las Vegas, how much you’ll pay each month is likely top of mind. According to the National Association of Realtors (NAR), monthly mortgage payments are rising, but they’re still significantly lower than the typical rental payment. NAR indicates the latest data on homes closed shows the median monthly mortgage payment is $1,204. By contrast, the median national rent is $1,575 according to the most current data provided by realtor.com. In other words, buyers who recently purchased a home locked in a monthly payment that is, on average, $371 lower than what renters pay today (see graph below):
Rents are Rising Sharply, and They Continue to Increase
The difference in monthly housing costs when comparing renting and homebuying today is significant, but many would-be homebuyers wonder about the future of rental prices. If we look to historical Census data as a reference, the median asking rent has risen consistently since 1988 (see graph below):
The rise in rent over time clearly shows one of the major advantages homeownership has over renting: stable housing costs. Renters in Las Vegas face increasing costs every year. When you purchase your home, your mortgage rate is locked in for 30 years, meaning your monthly payment stays the same over time. That gives you welcome peace of mind and predictability for many years ahead.
With rents continuing to rise across the country (especially in Las Vegas), renters should consider if now is the right time to buy. There are multiple benefits to buying sooner rather than later. Mortgage interest rates are what they’ve below in previous decades, and now could be the time to take advantage of lower monthly payments by purchasing a home rather than paying a monthly rent payment that is bound to increase over time. Let’s discuss your options so you can make your most powerful decision. Connect with us today!
Custom Fit Real Estate
702-483-5360 | info@customfitRE.com