Even with mortgage rates at record lows and low home prices, many people are choosing to not buy homes. But now rent prices are on the rise, according to the website cnnmoney.com.
Rent in the U.S. has gone up by an average of 5.4 percent over the last 12 months, according to real estate website Trulia. The price to rent has gone up as a result of potential homebuyers not qualifying for mortgages and homeowners who lost their homes to foreclosure, according to the article.
Asking prices on homes have risen by 0.3 percent in the last 12 months, according to data from Trulia. While that's the fourth increase in five months, the gains are small compared to the rise in rental rates over the last year.
"With rents rising faster than prices in most markets, buying is getting even more affordable relative to renting," Trulia's chief economist, Jed Kolko, told cnnmoney.com.