Rent payments are too high! The market is primed for some new buyers… but how long will it take?
By Matt Joy, Princeton Mortgage Wholesale
Tucked along the Allegheny River, Lawrenceville is one of Pittsburgh’s largest neighborhood areas. It’s home to one of our country’s finest Children’s Hospitals, a bustling nigh-life and food scene and the Carnegie Mellon University’s Robotic Center. It’s not abnormal to see one of Uber’s driverless cars cruising down Butler street as you leave one of the newest… coolest eateries in the city. However, it’s also home to the highest rent costs in Pittsburgh. Now, the measly $1,200 per month for a 1-bedroom apartment does not compare to New York, San Francisco or even Nashville ($1,300 per month) … but like other growing neighborhoods, rent is on the rise.
So… why am I telling you about the rent payments in a Pittsburgh neighborhood? Because it’s a growing trend across the U.S. The national average for rent is a little over $1,300 per month which according to RentCafe is a 2.8% increase from where rent payments were at this time last year. We’ve discussed in the past the benefits of renting versus owning, but there is a seriously strong case for getting out and buying your first home. According to the latest American Housing Survey, the national average for a mortgage payment on a 30-year fixed loan is right around $1,000 per month. We’re talking about some serious money being saved owning a home rather than renting, but why isn’t everyone out buying a home? Why aren’t we seeing an influx in purchases amongst the millennial generation?
My guess is that student loan debt compounded with the need to be in a cool atmosphere in some trendy neighborhood outweighs the financial benefits of owning a home… I mean, come on… posting a picture of your Rabbit Porchetta with violet mustard, smoked fingerling potatoes topped with a sauce gribiche (I have no idea what that sauce even is) while you drink an ironically named 8% ABV IPA… is WAY more important than having a heavy bank account… right? I don’t know. However, I’m starting to think not… I’m starting to think that taking a picture of my bowl of Raisin Bran Crunch paired with a Miller High Life (it is the champagne of beers) to save some money for a home might start to become a little more important.
But… I am getting older, so what do I know?
Photo by Jake Ingle on Unsplash
The opinions expressed in this post are the sole view of the writer and do not reflect the opinion of Princeton Mortgage Corporation.