Deciding whether to rent or buy a home when you PCS is a difficult decision. There are many factors to consider, including personal circumstances and the home-buying/rental climate in the area where you’re moving. Keep reading for some helpful tips about renting versus buying a home in Colorado Springs.
Rent in Colorado Springs on the RiseAccording to a recent report, rents in Colorado Springs increased 6.9% from 2016 to 2017. Nationally, rents increased 3.1% in 2017. This means that the Colorado Springs rental market is one of the more expensive markets in the United States. In fact, markets in the West have the seen some of the largest rental increases in the nation. (Seven of the top ten metro areas with the biggest rent increases are in western states).
What does this mean for you? Well, it may mean that buying a home may make more financial sense for you and your family than renting, especially in a rental market like Colorado Springs.
Surprising TrendIt may be a bit surprising, but rents have risen 19.6% nationally since 2012, the year that the housing market bottomed out. In addition, the number of households renting has been declining while homeownership has increased. That being said, the 2017 increase in rental prices was a bit smaller than the increase in the last several years.
Rising Rents = Less SavingsWhile you think you might not be ready to buy a home, running the numbers is always a great idea. With rents on the rise in Colorado Springs, you will be paying more per month for an apartment, condo or house and saving less. Once you crunch the numbers and compare a monthly rent payment versus a mortgage, the result may surprise you – home-buying may be in your reach after all.
Pros and Cons to Both Buying and RentingAs you wrestle with the decision of whether to rent or buy when you PCS, another thing to think about is your long-term goal as far as home ownership. Will this be your first time buying a home? If so, now may be the best time to act. Interest rates are on the rise and waiting too long to buy a home may mean that you price yourself out of the market.
However, there are pros and cons on both sides of the renting versus buying debate. What it really comes down to is this – YOUR personal circumstances. Colorado Springs Military Homes is here to help you decide which is best for you and your family. Use our Rent Vs. Buy Calculator or contact us with any questions. Regardless of your decision, we want you to feel at home in Colorado Springs!