Time to Buy in Charleston, SC is Now

If you think renting is cheaper than buying, think again. Recently Bloomberg released a story that discussed the rising cost of rent in the U.S. Analysis of Zillow data found that overall rent costs rose $20.6 billion last year. All-in-all $441 billion was paid for rental housing.

Hesitation to Buy is Driving Rental Prices Up

Even though housing markets across the country have begun leveling out, many people are still hesitant to buy a home. This has lead to an increase in rental demand that caused the housing inventory to tighten. With less rentals on the market landlords are able to increase the monthly rent.

The Charleston real estate market has seen this exact scenario play out in 2014. In recent years, Charleston has been one of the fastest growing metros in the country. This population surge has caused an increase in demand for all types of housing. As a result the price of rentals is rising much faster here than in other areas of the country. REIS, a real estate information firm, found that Charleston had a rental price increase of 5.9%, which was the fourth highest increase in the country.

In August of last year The Post and Courier ran a piece discussing the rising rental rates throughout the Charleston metro area. They found one of the key issues driving the increase in rates was the fact that building had been sidelined for several years during the recession.

New Home Builders in Charleston Are Ready to Help

Charleston home builders, like those at Crescent Homes communities, have been working hard to meet the growing demand for housing. More apartments and homes for sale are being built at record rates. This is good news for all Charleston residents, particularly those who want to buy.

While experts predict rental rates won’t increase as sharply this year, the fact remains that rates aren’t going down and will likely inch upward. This makes buying a home a better financial choice for many renters. Now that lending has loosened, it’s easier to secure a loan and interest rates are still amazingly low. For those that prefer to live in a single-family home, the monthly mortgage in some areas is now almost the same as monthly rent.

In addition to comparable monthly costs, home buyers get the benefit of increases in property value without their monthly payments going up. While this is a major benefit for buyers, it’s a factor that could end up increasing the cost for renters when they go to renew a lease.

If you are interested in learning more about the buying process in Charleston, schedule a time to tour the Crescent Homes communities in any one of their Lowcountry locations.