WHY WOULD ANYONE STILL BE RENTING?

I discovered something quite shocking recently. Housing rentals in the Central Florida area are really, really high.

We’ve always had rental properties, and I thought I had a good grasp of the market. But when my daughter moved back to the area, I quickly learned otherwise. In fact, I found that Central Florida’s residential rental rates are rising faster than almost anywhere else in the country.

According to Jed Kolko, chief economist at Trulia, it’s 41 percent cheaper to own a home in Orlando than to rent — even with the recent rise in interest rates and home prices. In fact interest rates would have to rise to 12.7 percent to tip the scales in favor of renting.

But for most people, homeownership is not so much about the numbers as it is about the intangibles. Being able to make your home truly yours, and to have it reflect your style and taste, is far better than living between generic white walls that belong to someone else.

And you can feel free to hang your favorite pictures without having to worry about being penalized for nail holes.

Homeownership also brings stability. A recent report from the Institute for Housing America reaffirmed the fact that children of homeowners have a significantly higher high school graduation rate than renters. Homeowners are also more active in their communities, getting involved in charitable and civic organizations with greater frequency than renters.

A fixed-rate mortgage brings stability to your pocketbook. You’ll never have to worry how much your landlord is going to raise the rent. And, of course, when tax time rolls around, you’ll have the benefit of deducting the interest paid on the mortgage throughout the year.

So with rents so high, and home prices and interest rates still at historic lows, why would anyone want to rent? Just don’t ask my tenants!

THERESA SWANSON
Group Publisher
theresas@thefloridahomebuyer.com