NOVA Homes Blog: Rents to Increase in Northern Virginia and DC, Home Affordability Improving

Tuesday, October 27, 2015

Rents to Increase in Northern Virginia and DC, Home Affordability Improving

When you look at your history as a renter, chances are that your payment has gone up every year. And according to the latest finding from an apartment research firm, these price hikes will not slow down any time soon.

Renters have been advised to "brace themselves" as costs show no signs of stopping. Annual rent growth last month was recorded at its highest level since 2011—an increase of 5.2 percent—and also marked the eighth consecutive month that rate has been 5 percent or higher.

Compared to one year ago, rent growth is up one full percentage point and has shown the longest sustained period of strength. This cycle of rent growth has already lasted five years, whereas the previous concluded at four.

On the opposite side of the housing equation, homeownership continues to provide advantages that renting just cannot. And while lower inventory in the real estate market has kept renters in their current position, housing affordability has actually been improving.

The median price of single-family home slowed in August, while family income moved higher, according to the National Association of Realtors Housing Affordability Index. Combine those statistics with mortgage rates still holding under 4 percent and affordability was able to rise to its highest level since May!

Buying a home has proven more affordable this year than last, even with slightly higher prices in the NoVA market. And just as you think mortgage rates are as low as they will get, they inch lower, which can help any area buyer gain an edge and increase their buying power.

So as you continue to mull over the decision between renting and buying, consider where rental prices will be one year from now as well as who you are paying with each monthly payment. When you rent, you are paying down your landlord's premium, versus owning where you are paying down your own!

I'm here to help you find the best home for your needs within your price range this year, so not hesitate to give me a call!

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna.

Earle Whitmore

Long & Foster Real Estate, Inc.
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