Rental Prices Going Up, Up, Up!

© Peter Gustafson | Dreamstime Stock Photos

Are you currently renting?  If you are, I'm sure you've noticed rental prices increasing.  If you've tried to find new housing to rent, you've likely had trouble finding places currently taking applications, let alone finding a vacancy in a decent place that you would actually like to live.

As of August 2015, average apartment rent within 10 miles of Portland was $1516.  According to Rentjungle.com, the average apartment rent over the last 6 months in Portland has increased by $198 (15%).  If you're like most people and are on a budget, that 15% increase can really cramp your style.  We've seen evictions coming left and right because landlords are realizing that they can get high rents for the same properties.

When we are talking about high rent prices and a shortage of available rentals, the obvious next step is to think about buying instead of renting.  If you're paying $1500 a month in rent, in one year you will have paid $18,000 towards your landlord's mortgage; in 5 years you will have paid $90,000!  If you've read my previous posts, you know that an average home's value doubles in about 18 years.  Instead of paying off your landlord's mortgage, you could be paying off your own. 

Get it out of your mindset that you need a huge amount of money saved up for a down payment.  There are lots of options out there, even options where you don't have to put anything down.  Now is the time to stop paying your landlord's mortgage and to start paying your own, building equity in your own future!

Want to read more about the rental crisis?
NAR Study
Portland Housing Bureau