Affordable Housing Solutions to Decide Between Buying or Renting in 2022

Buying a house vs. renting an apartment used to be a matter of priorities, budget, and aspirations. However, the pandemic struck, and we now live in the "new normal."

Home prices soared to new highs this summer due to historically low home availability, cheap loan rates, and a competitive real estate market. The odds are seen against buyers, not sellers. And the sweltering housing market shows no signs of abating.

 

So, renting, rather than purchasing, HUD training can help you save money, boost your chances of getting the property you desire in the future, and avoid a stressful purchase process.

 

Choosing between buying a house and renting an apartment can put you in a dilemma. However, for the time being, there are some significant benefits to renting.

 

Home Prices Have Skyrocketed

Owning a property in the United States has never been more expensive than it is now. The median existing-home price accelerated to $363,300 in June 2021, according to the National Association of Realtors [1]. This is a new high. Year-to-year gain indicates that these figures won't fall anytime soon.  

 

Apartment Prices Are Stable

During the epidemic, the average rent price increased as well, albeit not as dramatically. Between June 2020 and June 2021, the cost of a one-bedroom apartment climbed by 4.63 percent nationally [2]. During the same time, the rental price of a two-bedroom apartment was higher by 3.43 percent.

According to the National Association of Realtors, sales of existing single-family homes, condominiums, and townhomes gained 1.4 percent between May and June 2021. The month of June saw a 22.9 percent increase in sales over the previous year [3].

 

Housing Inventory will be Limited If you don't have the expendable income, buying a house can be arduous. This is largely due to a housing supply scarcity across the nation According to Altos Research, there was a reduction in properties for sale in February 2021 as there were a year earlier [4]. This includes townhouses, condos and single-family residences

 

Older homeowners who were at a higher risk of contracting COVID-19 stayed in their homes longer, restricting turnover. In such a competitive market, some homeowners were unable to obtain new housing solutions, while others clung to their present home's low mortgage during a period of financial uncertainty. During the epidemic, more boomers invited their college-aged and adult children back into the family home.

 

Many cities and areas are experiencing an increase in apartment inventory. Individuals are moving out of apartment apartments as more people purchase homes. This implies that renters, particularly in certain cities and localities, have more options.

Many downtown districts became quiet as stay-at-home orders closed offices and non-essential enterprises. Renters didn't need to be close to work any longer, and they couldn't take advantage of the restaurants and entertainment that dense urban cores normally provide. Extra space (both indoors and out) became a valuable commodity as people worked, studied, and socialized at home.

 

The Bottom Line

Renting vs. buying a property is a personal choice that is based on your objectives, financial constraints, and priorities. However, in 2022, due to a highly competitive and expensive housing market, renting offers many distinct advantages. all you need to make sure is to look for Innovative affordable housing solutions before you take the plunge.