In Mortgage Updates

Are Rent Payments Getting in the Way of your Dreams?

If your rent is going up, you’re not alone. Rent prices across the United States are on the rise. According to Zillow, rents in April were 4% higher than a year before and don’t show any signs of leveling off. These increases are happening across the nation, including the largest metropolitan areas, smaller cities and even communities where the market has been the weakest.

Higher rent not only effects your wallet today. Long term, high rent prices create a barrier to purchasing a home. Renters are spending more of their income on housing costs, leaving less money to put toward a down payment, one of the top barriers to buying. Homeowners across the nation pay an average of 15.3% of their income on mortgage payments each month, according to the Zillow report, while renters will pay roughly 30% on rent.

How Much Did Your Rent Increase?

According to the Zillow Rent Index, the following is how much April rent prices rose over the prior year in the largest U.S. markets:

  • San Francisco, 14.9%
  • San Jose, 12.9%
  • Denver, 11.6%
  • Kansas City, Mo., 9.5%
  • Portland, Ore., 8.6%
  • Charlotte, N.C., 6.6%
  • Austin, Texas, 6.2%
  • Cincinnati, Ohio, 6.2%
  • Seattle, 6.2%
  • Houston, 6.1%
  • Detroit, 6.0%
  • Sacramento, 5.9%
  • Los Angeles, 5.6%
  • Dallas-Fort Worth, 5.5%
  • Phoenix, 5.4%
  • Boston, 5.2%
  • San Diego, 5.1%
  • Atlanta, 4.9%
  • San Antonio, Texas, 4.6%
  • St. Louis, 4.5%
  • Pittsburgh, 4.4%
  • Riverside, Calif. 4.2%
  • Tampa, Fla., 4.1%
  • New York, 3.4%
  • Miami-Fort Lauderdale, 3.2%
  • Philadelphia, 2.8%
  • Baltimore, 2.7%
  • Columbus, Ohio, 2.6%
  • Cleveland, Ohio, 2.4%
  • Las Vegas, 2.1%
  • Washington, D.C., 2.1%
  • Orlando, 2.0%
  • Indianapolis, 1.5%
  • Minneapolis-St. Paul, -0.3%
  • Chicago, -1.0%

A home is a smart investment. PrimeLending wants to help renters realize the benefits of owning their own home. Homeownership offers stability, comfort, a place to make memories and lay down your roots. As a customer, you will receive the service, support and straightforward advice through the entire mortgage process.

Contact us today for more information.

  • Tommy Boyack

    Thank you for this information. It is indeed very good to know

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