Experts say rental rates are on the rise in the ValleyPosted: Updated:
SURPRISE, Ariz. -- New data shows that rental rates are expected to go up next year across the Valley.
Experts say with more lenient regulations and home prices staying flat, now is a great time to make a home purchase.
Experts also say there's less supply and more demand for rental properties, which is driving up rent. Meantime, interest rates remain flat.
"I have to know where every penny is going every month because there's no place to get anything extra if I need it," said renter Sherry DeBride.
She's hoping to get approved for a mortgage loan after recently learning that her rent will increase significantly come February.
DeBride is not alone. According to the latest monthly housing report from the W.P. Carey School of Business at Arizona State University, the typical lease renewal is up more than 5 percent.
Mike Orr, the director of the Center for Real Estate Theory and Practice, says demand for rentals is much stronger than buying. He says buying is what the renter should be considering, especially with incentives like low rates.
"There are lots of schemes that people haven't heard of. If you're a veteran, there are terrific mortgage options, FHA schemes. Some locations are classified as agricultural and the buyer can get USDA loans, which is 0 percent down," he explained.
Orr says with more lenient regulations and home prices staying flat, there's nothing to lose by applying and most likely everything to gain. He also says now is the time to talk to a potential lender about finance options.