I think we can all finally, confidently agree that Tampa’s real estate market is on the rise. And it seems to be steady. Current reports prove the demand for housing is increasing, so much so that the market is not able to keep up with demand. At a time when real estate is an excellent investment opportunity, is it time to rent or buy? If Tampa is such a hot market, why are so many people still renting their homes instead of buying?
Renting is Currently More Expensive
. In Tampa, renting an apartment will cost you an average of $1,300 per month. With interest rates on mortgages at an all-time low in 3 years, purchasing a home will cost you an average of $1,000 per month. If you qualify for a mortgage loan and you already know which neighborhood you would like to plant your roots, then buying a home is definitely your best option. However, not everyone wants to plant their roots. Welcome to the new generation of homebuyers.
The Millennials are moving, alot
. Trending within the Millennial generation is the ability to move around. Freedom they call it. Paying more money for apartments all over the Tampa Area just so they don’t “settle down” too quickly. In fact, home ownership is the lowest it has been in over 50 years in the Tampa Bay Area! That is a pretty significant number. In addition, some of these newly-graduated Millennials are still struggling to find decent jobs and as such have not moved out of their parent’s spare room to their own home. Home-ownership is no doubt a tell-tale sign up our economy.
We won’t forget 2008
. And neither will the younger generation who witnessed what their parents endured through the massive home foreclosures and job losses. The stench of a down-trodden economy still lingers in the air, making young adults more cautious of such a big decision. I believe this statement from a published article by the Tampa Bay Times, Robert Trigaux, sums it up perfectly:
“Our research indicates that not owning a home has a sizable financial cost, as renters miss out on low mortgage rates and are hit by higher rents,” states the August analysis by Apartment List. “This phenomenon may exacerbate inequality in our society, as those wealthy enough to invest in real estate benefit from lower interest rates, whereas minorities and younger Americans, hit by rising rents and student debt, risk being locked out of homeownership.”