As we say goodbye to 2014, we look back and reflect on all the events and changes that have happened in our lives. One topic that you might not necessarily reflect on is the amount of rent you paid this past year.
As you begin adding up that figure it might begin to surprise you how much you’re spending annual in rent alone. There are many tenants that aren’t aware that their monthly lease figure can equal a mortgage payment… or more. Unfortunately, the cost of renting over the years is the loss of building equity as a home owner. There are many programs out there that are designed to help buyers obtain a mortgage as well as help with their downpayment.
I’m sure you have seen many apartment/condo complexes rising up in Portland lately. If you think that rent prices will start to decease due to the increase of units available, that is unfortunately not going to happen. According to a report by Seattle based Zillow, Portland residence paid $3.9 billion in rent last year (2013). This year they paid $4.1 billion which is a 7.1% increase. The national rent average across the Unites States increased from $20.6 billion to $441 billion – 4.9% increase. Be aware that rent in Portland will continue to increase throughout 2015.
“Over the past 14 years, rents have grown at twice the pace of income due to weak income growth, burgeoning rental demand, and insufficient growth in the supply of rental housing. This has created real opportunities for rental housing owners and investors, but has also been a bitter pill to swallow for tenants, particularly those on an entry-level salary and those would-be buyers struggling to save for a down payment on a home of their own,” Zillow Chief Economist Stan Humphries said in a news release.
If you have been thinking of purchasing your first home or an investment home, now may be the time to act on those thoughts. If you are curious on what the costs are of owning a home are and what that process is like, Team Beltran Properties is happy to guide and educate you from start to finish.
Happy New Years Eve and best wishes for 2015!