Are you one of the many Boston Beacon Hill apartment renters thinking about where you’ll live the next time your lease is up? Before you decide whether to look for a new apartment, it’s important to understand the true costs of renting a Beacon Hill apartment in 2022.
As a renter, you should know apartment rents have been rising since 1988 (see graph below):
In 2021, rents grew dramatically. According to ApartmentList.com, since January 2021:
. . the national median rent has increased by a staggering 17.8 percent. To put that in context, rent growth from January to November averaged just 2.6 percent in the pre-pandemic years from 2017-2019.
That increase in 2021 was far greater than the typical rent increases we’ve seen in recent years. In other words – rents are rising fast. And the 2022 National Housing Forecast from realtor.com projects prices for vacant units will continue to increase this year:
“In 2022, we expect this trend will continue and fuel rent growth. At a national level, we forecast rent growth of 7.1% in the next 12 months, somewhat ahead of home price growth . . .”
That means, if you’re planning to move into a different rental this year, you’ll likely pay far more than you have in years past.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
If you’re a Boston Beacon apartment renter facing rising rental costs, you might wonder what alternatives you have. If so, consider homeownership. One of the many benefits of homeownership is it provides a stable monthly cost you can lock in for the duration of your loan.
“. . . fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.”
If you’re planning to make a move this year, locking in your Beacon Hill apartment monthly housing costs for 15-30 years can be a major benefit. You’ll avoid wondering if you’ll need to adjust your budget to…