Rent prices continue to soar, prompting people to buy homes rather than pay rent

GREEN BAY, Wis. (WBAY) – The national average for rent prices just hit a new high, which is now leading many to think about buying in Wisconsin rather than renting.

“Every time prices go up, it’s because they can,” real estate agent at Dallaire Real Estate, underlined Judd Gehl. “People who own property see that they can get more money for rent and they take advantage of it.”

As we have already reported, 2022 has been an extremely expensive year for tenants.

Related: Local landlord and real estate agent hit by rising and rising rental rates

At Appleton, reports an average price increase of 121% for three-bedroom apartments compared to last year. Still, experts say people from outside the region are drawn to a lower cost of living here.

“People are moving to the area now because they’ve determined they can do their job from anywhere in the country because their company has equipped itself to do that,” Gehl said. “Green Bay has a good median house price. So they end up in California or Texas and see that they can buy a house for a lot less money and live in a much safer community.

Given historic inflation, rent has now become one of the biggest pressures on household finances. Get people to find new solutions.

“The main thing we’re hearing from first-time home buyers is that they need to buy a house to be able to get out of rent because their rent prices keep going up,” Gehl pointed out.

In the Green Bay metro area, the median downtown rent is $916 according to Stessa, an accounting software company for rental properties. Studios in downtown Green Bay are about 34% more expensive than in 2021.

“Rent being what it is, owning a home is obviously still a great opportunity to build that equity instead of helping a landlord build their equity,” said Greg Dallaire, broker and owner of Dallaire Realty.

For those feeling the pinch, experts say rising rental prices unfortunately show no signs of slowing down.

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