Many renters are making moves toward homeownership as quickly rising mortgage rates and rents have them feeling increased pressure.

Average monthly rents climbed more than 14% year over year in December 2021, reaching $1,877.

Economists point to homeownership as a way to stave off inflation and build wealth, The Wall Street Journal reports. But higher rents are making it tougher to save for a down payment to buy a home.

“If you’re spending $2,400 a month in rent, that could be equity in a home,” Audrey Chaney, a real estate professional at Realty ONE Group Complete and Acre & Co. in Sacramento, Calif., told The Wall Street Journal. “If you do that for two years, it’s almost $50,000.”

Source: “How Rent Hikes Make Buying a House Even Harder,” The Wall Street Journal (Feb. 2, 2022) [Log-in required.]