Rent rising, house prices stabilizing - now may be the time to buy
There are a lot of advantages to both renting and buying a home. Depending on your financial circumstances and what you are looking for in a property, you may find one option to be more preferable than another. However, the increasing cost of renting in San Francisco has many locals looking toward some of the homes for sale in the Bay Area.
According to CNN Money, San Francisco is one of the major metropolitan areas with the biggest increase in rent during the past year. In fact, it's the number three on the list. Over the past 12 months alone, rent prices have increased a whopping 11.1 percent.
This is a trend the housing market is experiencing all over the country. Buying is more cost-effective in just about every city in the U.S. Perhaps for this reason, the national vacancy rate for the first quarter dropped to the lowest its been since 2001, 4.9 percent. This is a 0.3 percent decrease.
Owning a smaller home is typically much cheaper than a larger apartment, and may be a wise investment. There are a variety of affordable homes in the San Francisco for home buyers hoping to make the transition from renting to owning.