Those deciding whether to rent or buy in 2023 are stuck: Rents are expected to increase more than home prices, but it will still be costly to buy.

Are these words correct?

• Rents are expected to grow more than home prices in 2023, according to Realtor.com.
• But mortgage rates are also expected to grow, potentially negating any advantages to buying.
• Renters thinking about buying in 2023 should think twice and consider their monthly payments

There are still alot of key factors, location, amenities and more. I can rent a 4 bedroom 2 bath in a downtown district for more then one just 2 blocks outside of the city limits. Those rents have increase by several hundred a month in 2022. Rents are just going to continue to rise.

The age-long debate on whether it's better to rent or buy a home won't get any easier in 2023.

Home prices are starting to fall in some areas. However, mortgage rates are expected to rise more than they already have this year. A 2023 housing forecast from Realtor.com predicted a 7.4% average for mortgage rates in 2023, which would push homebuyers' monthly payments up and generally make homeownership more costly.

Increased monthly costs often tempt renters to look seriously into making the leap to homeownership.

Realtor.com economists also predict, however, that rents nationwide will increase by 6.3%, while they expect median home prices to grow by 5.4%. The forecast from Realtor.com did not include prices, but to give some context, Redfin's rental-market tracker found the median monthly rent in October was $1,983 — a 6.3% increase would bring that to $2,108. The median home price in the third quarter of 2022 was $454,900, according to the Federal Reserve Bank of St. Louis. A 5.4% jump means a typical US home would cost $479,464. 

An article from Treadstone Mortgage could not have said it better:

Making the jump from renter to becoming a first-time home buyer can feel like a big commitment! While the feeling is real, buying a home can be hugely rewarding both financially and emotionally in the long run.

Here’s our advice: Buy a home if you’re planning on staying in one place for more than 2 years. Rent if you intend to move frequently in the short term.

Its never easy to toss money in the garbage, in 2023 you will see a little extra going towards the garbage if you decide to rent. Learn what you need to do to own a home, invest your money, earn on your property. Start somewhere. Let me help you.

 

Sources:

https://www.businessinsider.com/rent-or-buy-home-in-2023-people-deciding-are-stuck-2022-12

https://www.treadstonemortgage.com/blog/renting-vs-buying-2023/