Over the last 25 years or more, homes in Northern Va have become larger in size. Baby boomers who find themselves in a large empty home often decide to downsize for real estate with less maintenance and expense. Those homeowners close to or already in retirement considering selling have an important decision to make! Should Northern VA Boomers Rent or Buy after Selling?

In a recent CNBC article, it was reported that many baby boomers are selling their current homes and moving into rentals, rather than purchasing another home.

“Between 2009 and 2015, the number of renters aged 55 or above rose 28 percent, while those aged 34 or younger only increased 3 percent…Meanwhile, more than 5 million baby boomers across the nation are expected to rent their next home by 2020, according to a 2016 analysis from Freddie Mac.”

This makes sense in the short term for many reasons. If you are moving to a different part of town or a new region of the country, you may decide to rent until you pick the perfect home in an area you love. However, is renting a good long-term strategy?

A mortgage payment remains fixed. Rents, however…

The Census Bureau recently released their 2017 third quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:

As you can see, rents have steadily increased and are showing no signs of slowing down. If you are faced with making the decision of whether you should rent or buy your next home, you should take this into consideration.

Bottom Line

With retirement approaching, protect yourself from rising rents is to lock in your housing expense by buying a home instead of renting. Considering selling your larger home to downsize and not sure the best plan of action for you?

I can help!I am an expert in selling starter homes, trade up homes, premium homes, Green homes, and luxury real estate in Northern VA. Selling homes since 2003 to first time home buyers, relocating clients, first time home sellers, luxury clientele, downsizing, and trade up clientele. Helping home sellers sell quickly and profit more with a carrier average days on market of 39 days. I have sold homes in Alexandria, Arlington, Burke, Centreville, Chantilly, Dunn Lorring, Falls Church, Fairfax, Vienna, Oakton, McLean, Reston, Tysons Corner, and all Northern VA.

Article originally posted on my KCM blog, here.