If you have been paying close attention to the nation’s real estate market recently, you may have found that there are actually a few states in which it may be more advantageous for consumers to rent homes rather than to buy them. Of course, there is a lot that you need to know about this when you are working as a real estate agent. How can you compete if you live in one of these states?
10 States (and 1 District) with the Rental Advantage
Research has determined that there are 10 different states in which renting a home is more affordable than buying. These include Hawaii, Arizona, Wyoming, Utah, Oregon, Montana, Colorado, Idaho, North Carolina, and Nevada. Washington, D.C., is also included in this list. This is up one state compared to last year.
Monthly payments are often simply cheaper for renters now than in previous years. Depending on the state, many areas may not offer much incentive to become a homeowner. In some areas, the costs of homes are increasing faster than wages of jobs in the state.
As a real estate agent, this leaves you wondering about your role in these states. How can you advise your clients to make good decisions about buying and selling property in these states? Understanding the advantages posed by renting a home can help.
Advantages of Renting Over Owning
Not only might renting be more affordable on a monthly basis, but it also offers a number of other benefits. These include the idea that renting is versatile. A family can opt to move out in favor of a cheaper option at any point. Even breaking a lease is more convenient than leaving behind a mortgage.
There is also some risk to taking on the debt of a mortgage. Many families also simply lack a down payment to put toward a house. All of this makes renting so much more appealing.
What Does This Mean for Real Estate Agents?
There are many implications for real estate agents in these new findings. First, it means that real estate agents in these states may need to work harder to see the same returns as agents in other states. It also means that marketing is becoming an even more essential skill.
Of course, there are many locations in which buying still reigns supreme. Take a look at the city of Omaha, for instance. In this Nebraska city, the average monthly rent is $1,255 whereas the average monthly mortgage is only $583. This is also similar in cities like Cincinnati, Tulsa, and Louisville. In these areas, you could very well continue selling homes with no problem.
Additionally, this could mean that real estate agents need to focus on working with renters and landlords. One way to do this is to pursue continuing education courses to enhance your skills. We can provide you with information you need to pursue this option. Contact us for more information about these courses.