Renters: Paying More for Less Space

Renters: Paying More for Less Space

Aug 26, 2016

Renters in the U.S. Continue Paying Rising Rents for Less Space

It is no secret that rent is on the rise. The average national rent is $1,296, and in big cities like NYC, renters are looking at $3,262 per month on average. To put that in perspective, rent was about $977 per month on average in 2011. With rent rising quickly, one might assume that renters are getting more amenities and space… not so fast.

Less Space in Apartments

That’s right, apartments are actually getting smaller despite costing more per month. The average new apartment in the U.S. is now 934 square feet. Ten years ago, new apartments averaged 1,015 square feet! Many renters are sharing rooms to further cut costs, resulting in even less personal square footage.

More Square Footage in Homes Across the U.S.

The average home in the U.S. costs $187,000, with the average square footage of new homes coming in at around 2,400 to 2,600 square feet. This continues the trend of new home construction increasing in square footage each year.

The Solution

For more “bang for your buck,” renters are encouraged to make the move into homeownership, especially as rent continues to skyrocket in big cities. With a variety of loan programs to benefit first time homebuyers, such as HomeReady and FHA, many lifelong renters have been able to make the move to homeownership; a move many didn’t think was possible. With home sizes increasing, steady pricing, and interest rates at an all time low, now is the best time to buy a home.

To learn more about your financing options, contact Home Point Financial today.