ROCKFORD, Ill. (WTVO) — With prices on the rise due to inflation, worker shortages, and supply chain issues, is buying a house a better option than renting?
According to realtor research firm CoStar Group, rent rose a record 11.3% last year, causing renters to jump into home ownership.
“Where I was living, it was a rental. I couldn’t keep equipment there, so on top of paying rent I was paying for a place to keep my equipment,” said soon-to-be homeowner, Richard Tavernie.
Tavernie said he and his wife, Rhonda, weren’t thinking about buying a home until they were paying a drastic increase in monthly rent.
After searching, they settled on a three-bedroom, two car garage home with an acre of land.
“I knew she wanted it…and with all the land and the outbuildings, my business can really grow out here. [I can] get more equipment, so it was just the right move at the right time,” he said.
Tavernie runs a concrete and paving business.
Realtor Ben Kullberg says many people think renting is the cheapest way to go, but in the Rockford area, people can be saving more by buying a house, and gaining credit with a stable monthly payment.
“Rent has gone up by 50% in a lot of places and still you can buy a house, even if the interest rates are going up still less than renting a house,” Kullberg said. “People [would be] be surprised that it is less expensive to buy a house than to rent a house and when you are owning a house, you’re gaining equity in that house. In the future, you’re going to be able to sell that house and walk away with a lot of money.”
Tavernie said he is excited to move into his new home.
“I’m excited, and ready to move and grow my business out there, and see where life takes me,” he said.