CORPUS CHRISTI, Texas — As prices for just about everything continue to rise, the cost of rent is making the lives of residents especially difficult.
To sum it up, "You're going to see more and more people having a hard time finding the right and affordable homes to rent," said Texas A&M University-Corpus Christi Economics Professor Dr. Jim Lee.
With all of the construction taking place, it may leave you wondering how renters are struggling to find places to live. Dr. Lee answers, "It's important to understand, when we're talking about the housing expenses, we need to compare that with income. Income and wages have not gone up at the same pace."
Residents are experiencing serious inflation. While the rental market has inflated 8.5% over the last year, income wages have only increased by 4-5%.
Claudia Mostaghasi, RMLO with Home Source Mortgage told 3NEWS, "Interest rates are higher, and you're going to be paying maybe 5.25% for a 30-year mortgage. When you're renting, you're paying 100% interest."
Mostaghasi is very familiar with the debate of whether to rent or buy.
"You know, you buy a house right now with a high interest rate. Let's say the house is $300,000, you wait two years until the interest rates come down, the same house is gonna be $400,000," Mostaghasi said. "So, even though the rates came down, guess what? The payment is gonna be the same."
Dr. Lee adds, "When you buy a home, you know, get you realize the price immediately, right? Okay, but for for renters, they don't. They don't realize it until the end of the year. Until they renew the lease, alright. So they will see, what we call, a sticker shock."
Unfortunately, renters wont be getting relief anytime soon. So, when the time comes to make that decision, the best practice is to sit down with a mortgage professional and go over the numbers. That way you are able to choose the best option for yourself and your family.
For more information about Home Source Mortgage, click here.
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