• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Welcome to Eastern Oregon Living

Eastern Oregon Lifestyle & Real Estate

  • Our Eastern Oregon
    • Morrow County
      • Boardman
      • Heppner
      • Ione
      • Irrigon
      • Lexington
    • Umatilla County
      • Adams
      • Athena
      • Echo
      • Hermiston
      • Milton-Freewater
      • Pendleton
      • Pilot Rock
      • Stanfield
      • Ukiah
      • Umatilla
      • Weston
  • Community
  • Lifestyle
    • Links to Additional Lifestyle Resources
  • Events
  • Real Estate
    • Listings
    • Reviews
    • Market Trend Reports
    • Home Tips
    • Buyer & Seller Resources courtesy of Paladin Realty Team (external link)
    • Links to Additional Real Estate Resources
  • Contact
    • Facebook: Paladin Realty Team
    • Dawn @ Keller Williams
You are here: Home / Real Estate / Avoid the Rental Trap in 2023

Avoid the Rental Trap in 2023

January 4, 2023 by Dawn Blalack

If you’re a renter, you likely face an important decision every year: renew your current lease, start a new one, or buy a home. This year is no different. But before you dive too deeply into your options, it helps to understand the true costs of renting moving forward.

In the past year, both current renters and new renters have seen their rent go up based on information from realtor.com:

“Three out of four renters (74.2%) who have moved in the past 12 months reported seeing their rent increase. The strain from recent rent hikes isn’t exclusive to renters who have recently moved. Nearly two-thirds of renters (63.2%) who have lived in their current rental between 12 and 24 months, and likely renewed their lease, have also reported increases in their rent.”

And if you look back at historical data, that shouldn’t come as surprise. That’s because, according to the Census, rents have been rising fairly consistently since 1988 (see graph below):

Avoid the Rental Trap in 2023 | Simplifying The Market

So, if you’re considering renting as an option in 2023, it’s worth weighing whether this trend is likely to continue. The 2023 Housing Forecast from realtor.com expects rents will keep climbing (see graph below):

Avoid the Rental Trap in 2023 | Simplifying The Market

That forecast projects rents will increase by 6.3% in the year ahead (shown in green). When compared to the blue bars in the graph, it’s clear that the 2023 projection doesn’t call for an increase as drastic as the ones renters have seen over the past two years, but it’s still above the historical average for rent hikes between 2013-2019.

That means, if you’re planning to rent again this year and you’ve not yet renewed your lease, you may pay more when you do.

Homeownership Provides an Alternative to Rising Rents

These rising costs may make you reconsider what other alternatives you have. If you’re looking for more stability, it could be time to prioritize homeownership. One of the many benefits of owning your own home is it provides a stable monthly cost that you can lock in for the duration of your loan. As Freddie Mac says:

“Monthly rent payments may increase over time, but a fixed-rate mortgage will ensure that you’re paying the same amount each month. With a fixed-rate mortgage, your interest rate is locked in for the life of loan. Steady payments allow you to budget wisely and make plans for the future.”

If you’re planning to make a move this year, locking in your monthly housing costs for the duration of your loan can be a major benefit. You’ll avoid wondering if you’ll need to adjust your budget to account for annual increases like you would if you left your housing payment up to your landlord and their renewal cycle.

Homeowners also enjoy the added benefit of home equity, which has grown substantially. In fact, the latest Homeowner Equity Insight report from CoreLogic shows the average homeowner gained $34,300 in equity over the last 12 months. As a renter, your rent payment only covers the cost of your dwelling. When you pay your mortgage on a house, you grow your wealth through the forced savings that is your home equity.

Bottom Line

If you’re thinking of renting this year, it’s important to keep in mind the true costs you’ll face. Let’s chat to see how you can begin your journey to homeownership today.

Filed Under: Real Estate

More Posts

How to Run a Household While You’re Selling It

Real Estate Is Voted the Best Long-Term Investment 12 Years in a Row

Navigating Today’s Market

Thinking about an Adjustable-Rate Mortgage? Read This First.

Primary Sidebar

Recent Posts

  • How to Run a Household While You’re Selling It
  • Real Estate Is Voted the Best Long-Term Investment 12 Years in a Row
  • Navigating Today’s Market
  • Thinking about an Adjustable-Rate Mortgage? Read This First.
  • Weekend Projects To Boost the Value of Your Home

Archives

  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019

Categories

  • Community
  • Events
  • Lifestyle
  • Outdoors
  • Real Estate
  • Restaurants
  • Uncategorized

Search For Listings

Footer

Dawn Blalack
Oregon Principal Broker

  • 541-310-9563
  • [email protected]
  • Facebook
  • LinkedIn

Nathan Good
Transaction Coordinator

  • 541-310-7070
  • [email protected]
  • Facebook
  • LinkedIn

Copyright © 2025 · Agent Focused Pro by Winning Agent · Log in

Contact Us:

EOL Logo
PRT Logo

Terms and Conditions - Privacy Policy