Is it better to rent or buy in Houston? In Houston, we are experiencing a rapid increase in the population, which has driven up the demand for rental housing. You’ll hear reporters use descriptions such as, “multifamily development boom.” You'll also read articles like this one that report, “Rents are growing at the fastest pace on record.”
The greater the popularity for apartment living, the higher the rates will be to live there. This source says rents in Houston are increasing by 4.9 percent year over year. If you pay $1500 monthly for your apartment, after a year, you’ll be paying $1573.50 a month—which is $882 more annually.
With rental rates increasing, condos are gaining in popularity as an alternative to renting. Condominium developers, like Surge Homes, are leading the way in proposing new communities. They're proposing new communities in different sought-after areas of Houston’s inner Loop. giving people the affordable choice to own rather than rent. To further explain, we’ve got the top three reasons why buying trumps renting.
1. You can stake your claim
Home ownership is empowering. The dollars you pay in mortgage and improvements yield a longer-term investment benefit for you—rather than a landlord. When you're renting in Houston, you don’t have true ownership in the property, and you don’t receive any equity for your investment. The money you pay in rent is just that. When you own a home, it’s yours. It’s a stake in the ground with your name on it.
2. Your investment gets better with age
This report explains that homes appreciate on average by 4.5 percent annually. In today’s investment landscape, you’re hard-pressed to find an investment with these steady, reliable returns. The approval rate for home loans has become favorable once again. This means that more qualified buyers, from the first timer to the seasoned pro, have the opportunity to own a capital-appreciating investment with residential real estate.
3. You pay less and get more
Dollar for dollar, home ownership is more cost effective than renting. CNN Money reports that renters pay about 45 percent more on housing costs that home owners. Depending on the terms of your mortgage (assuming you have a fixed-rate agreement), your payment remains relatively unchanged year over year. This is most certainly not the case when you rent. In fact, renters expect their monthly payments go up every time they sign a new lease. If you plan to stay in the home for more than a couple of years, it makes greater fiscal sense to buy than to rent.
