Is It Better To Rent or Buy a Home in Raleigh?
Is It Better To Rent or Buy a Home in Raleigh?
Are you debating renting or buying a home in Raleigh, NC? Here is everything you need to know about renting and buying a home in Raleigh.
With nearly 40,000 more households and businesses moving to Raleigh, NC, between 2018 and 2022, Raleigh is one of the fastest-growing cities in the country. From award-winning restaurants to fun things to do and prime real estate, it's hard not to fall in love with Raleigh.
As of 2022, 51% of Raleigh homes were owner-occupied. In Wake Country as a whole, 64.3% of homes were owner-occupied. As an owner or renter, you will have your pick of home styles, sizes, and layouts.
It can be hard to decide whether to invest in short-term living or buy a home; either way, it is a huge investment. The buying process can be daunting, but many would rather buy a home than rent. However, if you aren't ready to buy your first home, renting is an amazing option, especially with all of the affordable housing options in Raleigh.
Ultimately, the decision to buy or rent depends on many factors, such as your financial goals, financial position, personal preferences, and more. No matter where you are in life, moving to Raleigh is the best decision you can make for yourself.
Keep reading to learn all about renting versus buying a home in Raleigh.
Chapters
1. Pros of Buying a Home in Raleigh
Buying a home will be one of the biggest investments of your life, but before taking the leap, let's take a look at the pros and cons of buying a home in Raleigh.
Building Equity
Buying a home will be a large financial step, but you can end up building a lot of equity over time. As you make mortgage payments, you'll be building equity gradually. Equity is the difference between what you owe on your mortgage and what your home is currently worth. For example, if you owe $100,000 on your mortgage loan and your home is worth $150,000, you would have $50,000 equity in your home.
Depending on your personal preferences and financial goals, you can renovate your new home to increase your home value. Equity is a valuable asset as a homeowner can can provide many benefits to help you reach your financial and life goals.
Freedom and Stability
Many people would rather own a home to have complete control over the property. There are many rental-friendly ways to renovate or modify a rental, but owning a home gives you much more freedom to make improvements.
In addition, owning a home can give you financial stability. A fixed-rate mortgage will offer predictability in housing costs. This is ideal for a homeowner to be able to budget each month.
Potential Tax Benefits
To assist homeowners with the strain of paying high mortgages, the US government created several tax deductions to lower the payments you will make during the tax season. Here are a couple of the main tax benefits you would qualify for as a homeowner.
- Tax breaks in the form of deducting mortgage interest.
- Local property taxes can be deducted.
- Energy tax credits from energy-saving home improvements.
2. Cons of Buying a Home In Raleigh
Similar to any major decision, everything can have downfalls, but it is completely up to you on what you decide. Keep in mind that the housing market is quite competitive in Raleigh, and most homes will see multiple offers and be under contract in a matter of days.
Market Fluctuations
Most know the real estate market can be extremely unpredictable. Unfortunately, housing expenses are rising as Raleigh becomes a more popular destination for families, young professionals, and retirees. The housing market will change, and the value of your home can decrease due to changes in the local economy, neighborhood developments, and much more.
Maintenance and Repair Responsibilities
Just as you have the freedom to make renovations, all of the maintenance and repair responsibilities will fall on you as the homeowner, unlike renting, where the landlord would typically be responsible for helping with maintenance. Depending on your home, this can become extremely time-consuming and costly. You may be able to negotiate repairs with the seller after the home inspection, so keep an eye out for issues.
Competition
As a highly sought-after city, Raleigh is ever-changing, and the housing market is extremely competitive. Some neighborhoods in Raleigh lack inventory, and the best homes will have multiple offers. You will have to act fast if you want to buy the home of your dreams in Raleigh, so make sure you are ready before you start looking at homes.
3. Pros of Renting a Home in Raleigh
Renting a home can prove to be a way to give you some extra breathing room if you aren't ready to buy a home. Nevertheless, it has its pros and cons, so first, let's look at the pros of renting a home in Raleigh.
Lower Upfront Costs
Unlike buying a home, renting hardly has any extra fees other than rent and the typical utility bills. Also, the utility bills are usually much lower with a rental property than they are when you own a home.
Lower Maintenance Costs
As we said before, the majority of the maintenance responsibilities will fall on the landlord of a rental property. This is a huge advantage for a renter because many repairs can cost a great deal of money and time.
Personal Freedom
Unlike the freedom you have when you own a home, renting gives you freedom of short-term living. Renting is a great option for those who are unsure how long they will stay in a new location or are waiting for a better home to come on the market. No matter the reason, renting is an incredible option for those who aren't quite ready to invest in buying a home completely.
You can still make small improvements to your rental property, depending on local laws and your landlord. Many renters have started trying rental-friendly projects to upgrade their space. Be careful if you do try any rental-friendly projects in case you do damage and cannot get your deposit back when it is time to move out.
4. Cons of Renting a Home in Raleigh
Rising Rental Prices
Rental prices are rising with all other expenses, especially in growing cities like Raleigh. As of 2024, the average rent for a residential property in Raleigh is about $1,319. This can change based on the location, size of the home, and many other factors. However, depending on your personal situation, many renters have roommates to decrease the monthly costs.
Dealing With Landlords
As many know, landlords can make or break a home. Many homeowners who couldn't sell their homes are now leasing them and becoming landlords. Not only can dealing with a landlord be tricky, but dealing with an inexperienced landlord can be even more difficult.
Many landlords also create restrictions on what you can do in your home. For example, some landlords don't allow pets, which is a deal breaker for many pet owners. Many landlords even set pet fees that you will need to pay upfront or monthly. You should always check with the landlord or property management in order to prepare for any rules and regulations they may set.
Lack of Equity
One of the largest disadvantages of renting is the inability to create equity in the home you are living in. Essentially, you are paying someone else's investment, which can be a problem depending on your financial goals. As a renter, you aren't going to benefit from appreciation of property value or build any equity in the home.
5. What to Know Before Renting or Buying a Home in Raleigh
Before you move anywhere, there are many things to consider and many common mistakes made by home buyers. Before deciding whether to rent or buy a home in Raleigh, consider these important factors.
Market Conditions
The housing market is constantly fluctuating, but currently, it is a buyer's market in Wake County. Wake County's housing market is one of the most stable in the country so far in 2024. However, there is still low inventory, so keep that in mind as you search for your next home in Raleigh.
Affordability
Affordability is the most important factor to consider when deciding whether to buy or rent a home. Before making this decision, you must look over your finances carefully. Check your income, savings, credit score, and the cost of living in Raleigh to decide if you can afford to live there.
There are many ways that people save for a house while renting, including cutting back on unnecessary spending and paying off high-interest debt.
Personal Goals
The final factor to consider is yourself. This means taking a look at your future plans, personal preferences, financial goals, and more. Moving to a new area is a huge deal and can have a significant impact on your life. Make sure you are ready to take the leap and make sure you will be able to support yourself after.
Methodology
We used information and data from several different sources as well as our own data to determine if it is better to rent or buy a home in Raleigh, NC. Most of the data was sourced from the following sources:
- ABC11 Raleigh-Durham
- U.S. Bureau of Labor Statistics
- City of Raleigh, North Carolina
- United States Census Bureau
FAQ: Is It Better To Rent or Buy a Home in Raleigh?
Here are some commonly asked questions about whether renting or buying a home in Raleigh is better.
Is it cheaper to buy or rent in Raleigh?
Housing prices are rising in all aspects, and most areas are experiencing a housing shortage, so renting and buying are more expensive than in the past. However, data suggests that renting is still cheaper than buying. However, this all depends on where you live and how many people are in your home.
How is the housing market in Raleigh, NC?
In January 2024, 721 homes were sold or pending in Wake County. This was down by 26% month-over-month, meaning you may be able to get a good deal on a home in Raleihg if you act fast.
Is rent high in Raleigh, NC?
The average Raleigh rent in February 2024 is about $1,344 per month. This is slightly lower than the national average rent, which is about $1,497 per month.
What is a good salary in Raleigh, NC?
The average hourly wage in Raleigh was $30.05 in 2022, higher than the national average of $29.76, according to the U.S. Bureau of Labor Statistics. The median household income is $75,424, with the top 13% making over $200K in February 2024.
What is the best part of Raleigh to live in?
Raleigh is full of many beautiful new, historic, and up-and-coming neighborhoods. The most popular neighborhoods in Raleigh include Oakwood, Midtown, Cameron Village, and Cameron Park.
Rent or Buy a Home in Raleigh - The Bottom Line
Buying or renting a home will be a big decision, and you will need to think through your options seriously. Not only are there many pros and cons for each, but it will not be a one-size-fits-all solution. This decision will depend completely on whether you are financially stable and ready to buy a home.
Before deciding whether to rent or buy a home in Raleigh, chat with a trusted real estate specialist for help deciding which option will be best for you.
As you are searching for your next home in Raleigh, NC, which is one of the fastest-growing areas in the country with many beautiful homes for sale, you'll have to act fast if you want to buy your next home in one of Raleigh's best neighborhoods.
Before you buy your next home in the Triangle, feel free to contact one of our helpful real estate specialists, as they are eager to help you find the perfect home. We know that buying a home can be overwhelming, so make sure you are prepared beforehand.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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