Home RENTALS…Is this truly an option anymore?
For those who know their stay in a particular location will be short, perhaps less than 2 years, a rental can make good sense. Also good choice for those who simply want to have no encumbrances or home maintenance responsibilities.
The recent surge in home prices (well, the last 1.5 years) has challenged would-be homebuyers to find a home to purchase so they can stop renting. Now, however, North Texas home rental prices have increased so dramatically since 2019 that buying, even at a higher interest rate than was previously possible, may still be the best bet.
In 2019, the average home rental was $1,935/month of homes in the McKinney•Melissa•Anna•Van Alstyne areas, that were sized at 3-5 bedrooms, 2-4 baths, 1400-3400SF, and under .5 acre lots. In all of 2019, 1073 homes were leased, ranging from a low of $1,250 to a high of $3,200.
As of 28 June, 2022, in the same market and type of property, current Lease offerings not yet rented are listing for an average of $2,735/month, from a low of $1,895 to a high of $4,500. An increase of a whopping $800/month on average.
Here’s an idea of what you may be able to purchase to have your monthly payments be about the same as the average rent shown above. This is only a fuel for thought, based on current rate numbers and a tax rate of around 2.5%. Where and what you buy will vary in price, but it’s clear that renting is no longer the afforadable choice. Let’s see what we can find for you to own…