In a new report from the Apartment List, shows that the rental index median has increased 16.4%. This is putting a significant hardship on American families who are struggling to improve their financial situation.
While rental costs increase, homeowners have gained $51,500 in equity during the same time frame, according to CoreLogic, further setting the financial health of Americans.
Keeping Current Matters has great write up of this situation outlining how important homeownership is for American to be successful financially. Read the article here >.
The decision to rent versus buy is complicated and each family needs to weight the costs and benefits of each housing choice. Places like the NerdWallet have calculators that can be used to consider what is the best financial choice for you.
Looking at rents in our two primary markets, prices for rents and equity are up across the board. See the trends below:
Minnesota is up 4.3% during the last year with rents for a two bedroom in Minneapolis running $1,457 a month.
Arizona is up 27.9% for the last 12 months with rents for a two bedroom in Phoenix going for $1,470 a month.
Across the nation, equity has increased significantly over the last year according to Core Logic. During this time frame, a homeowner in Minnesota has seen their equity increase $33,000 and in Arizona a healthy $79,000.
