Rising apartment rents mean owning a home in Chicago makes even more financial sense
Renting in Chicago keeps getting more expensive, another good reason to switch from renting to owning.
The latest data from apartment research firm Yardi Matrix shows that renters paid an average of $102 a month more in September of this year than they did during the same month a year earlier.
Yardi Matrix reported that the average monthly rent for an apartment in Chicago stood at $1,913 in September. That’s up 5.6 percent from the same month a year earlier, when the average monthly apartment rent was $1,811.
This jump in apartment rents is more evidence that this is a great time to buy a home in Chicago. There’s long been a debate about whether it’s financially wiser to own a home or rent an apartment. When apartment rents keep rising, as they are in Chicago, it makes it an even easier decision to go with owning.
Remember, when you are renting, you aren’t gaining anything for the money you are giving your landlord each month. When you pay a mortgage payment on a home you own, though, you steadily build equity. Equity is the difference between what your home is worth and what you owe on your mortgage. If your Chicago home is worth $300,000 and you owe $200,000 on your mortgage, you have $100,000 in equity.
You can borrow against that equity to pay off high-interest-rate credit card debt, fund a home-improvement project or help pay for your children’s college educations.
And when you sell a home when you have equity? That’s more profit for you.
If you’ve been debating whether to make the move from renting to owning, the numbers from Yardi Matrix should push you toward homeownership. Your first move? Contact a REALTOR® who knows the neighborhoods in which you want to buy. This pro can get you started on the path to homeownership.