by The KCM Crew on July 20, 2016 in First Time Homebuyers, For Buyers
The Consumer Price Index (CPI) was released by the Labor Department last week. An analysis by Market Watch revealed the cost of rent was 3.8% higher than a year ago for the second straight month in June. That’s the strongest yearly price gain since 2007.
This coincides with a report released earlier this month in which AxioMetrics announced that rents are continuing to increase in 2016. The report revealed:
- There was a 3.7% increase in effective rents in the second quarter of 2016 as compared to the same period last year.
- That the effective rent growth this quarter compared to last quarter was 2.3%.
- Annual effective rent growth was positive in 49 of the top 50 markets, based on number of units. Only Houston was negative, at -1.4%, as the fallout from energy-industry job losses and excess construction continues.
Here is a graph to illustrate the rate of increase over the last several years:
Bottom Line
With rents continuing to rise and mortgage interest rates still at historic lows, meet with a local real estate professional who can help determine if you could turn your monthly rental cost into a home of your own.
Kelvin Kaemingk is Regional Vice President with American Equity & Mortgage Consultants, Inc (AMEC), leader of the My Smarter Mortgage Team and Co-Host of the Real Estate Chalk Talk radio program based in the Minneapolis-Saint Paul area.
Kelvin Kaemingk NMLS # 251124 / Branch NMLS # 1139048 / Equal Housing Lender