Owning a home might not suit everyone, and renting isn't as budget-friendly as it once was. A recent study by Rent.com sheds light on the current rental landscape nationwide, including the situation in Michigan. The question remains: how financially burdensome has renting become?
Here are Five Fast Facts on home rental prices:
- 👍 The Good News - The good news is that rental prices have been trending down since August of last year, and are almost 1% lower now. Better than going the wrong direction all together!
- 👎 The Bad News - Unfortunately, that’s just the beginning of the story. The rest of it is this: rents are still generally higher than a year ago in most areas, and 23% higher than before the pandemic. Honestly, what wasn’t better before the pandemic? It really did a number on the whole world! 🤦
- 🗺️ Location, Location, Location - The amount of pain really depends on where you live. The Midwest has the best rental rates, followed by the South. The West and Northeast aren’t far from doubling those rates.
- 📈📉 Tops And Bottoms - The states with the biggest increases in rents year over year are Mississippi (14.7%), New Hampshire (12.8%), Michigan (12.5%), Minnesota (11.7%), and North Dakota (10.8%). The states with the biggest declines are Florida (-9.2%), Idaho (-5.7%), Oregon (-5%), Washington (-4%), and Utah (-4%).
- 💰 Here At Home - Detroit ranked #12 of metro areas for rental increases, going up by almost 4.5% since January 2023, definitely a big part of the reason Michigan had the third highest rent increases in the country. The median rental price in Detroit is $1,671, and the rest of the state is $1,507. You pay a premium for being in the big city!
🔥Bottom line: Renting your home might be the way to go…or it might not. It’s certainly more expensive now than it has been in years! But whether you choose to rent or own, being equipped with the right information and expectations is essential to making the right call about how much rental pain you’re willing to endure.
What’s been your experience with renting recently?
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