Rent-To-Own offers potential home buyers many benefits, including building non-cash equity, hassle free buying without completion and still saving time.
Everyone deserves a place to come home too and call it theirs.
With skyrocketing demand for homes and waning inventory, the rent-to-own model has become very popular. A housing shortage has been largely caused by a population exodus from city centers to suburbia. The housing market of 2021 will likely go down in history as one of the most frenzied real estate markets ever. The median price for a home increased nearly 14% with homes selling on average in less than 3 weeks. With the cost of new homes and the cost of rent dramatically increasing over the past two years, we can expect to see the real estate market continue to follow a trend of renting-to-buy.
The supply of single family homes has dwindled, but the demand for them has not waned. Single family home rentals have become even more popular. Many people want either more space for work or for school from home. A lot of people are also reaping the benefits of their new virtual jobs. The continued need for single family homes suggests that the rent-to-own market is going to expand.
For the average consumer, rent-to-own is a great way to land your dream home. While the home you might have wanted last year could have gotten snatched up, you might be able to find what you are looking for more easily with the rent-to-own option. For qualified buyers, such a scenario could offer more options. Perhaps an opportunity to try the home on for size before making a solid commitment makes more sense. With rents remaining elevated and even continuing to increase, the difference between rent paid on a regular home versus the added equity payment in a rent-to-own arrangement might be modest enough to make rent-to-own an attractive value proposition.