Located just southeast of Tacoma, Puyallup is a charming town known for its flower fields, agricultural history and the iconic Washington State Fair. If you are considering moving to Puyallup, you may be wondering whether to rent or buy a house in the area.
If you are looking to buy a house in Puyallup, the current median sale price of a home is $523,500 in July. On the other hand, if you are considering rent an apartment in Puyallup, the average monthly rent for a two-bedroom apartment is $1,808. According to your budget and current mortgage rates, renting may be cheaper than buying a house. However, it may still be the right decision for you to buy a home this year.
Ultimately, the decision between buying a house or renting an apartment in Puyallup depends on various factors. In this Redfin guide, we’ll dive deeper into the pros and cons of renting and buying in Puyallup, so you have the knowledge to make an informed choice. Let’s start.
Advantages of buying a house in Puyallup
Investment opportunities
The first advantage of buying on this market is to consider it as an investment. If you do, you’ll probably make some money. Appreciation is real, and even if the market is slowing, appreciation is growing. Equity can be used as a step towards a bigger home in the future, it can be used as cash when refinancing medical bills, tuition or just as a long term retirement to subsidize your 401k.
Fiscal advantages
Home ownership comes with benefits, including potential tax advantages. In many cases, it may be a tax deduction and may reduce your taxable income. Be sure to speak to a tax professional to understand the benefits you may be entitled to.
Growth in the region
Puyallup grows and expands. What may seem like living in a small community now may not be so in a few years.
Disadvantages of buying a house in Puyallup
Low inventory and rising prices
A major downside to buying a home in Puyallup, Washington today is the combination of few homes for sale and rising prices. Sellers are not selling, creating very low inventory in the market and therefore house prices are not falling. A lot of people are waiting for house prices to come down, but what we’re seeing is that prices keep going up.
Not finding your “dream house”
With a high demand for housing and a limited supply of available properties, buyers often have to settle for a home that may not meet all of their preferences or requirements. Intense market competition can lead to bidding wars, driving up prices and putting additional pressure on buyers to make quick decisions.
Additionally, a low inventory can make it difficult to find a home within a certain budget range or desired location. As a result, buyers may have to compromise on certain aspects, such as the size of the property, home featuresor proximity to schools or other amenities, which can be a significant disadvantage when looking for a long-term investment in a home.
Determine if you are ready to buy a house in Puyallup
Depending on your current goals, you may want to consider a few additional factors before deciding if the time is right to buy a home.
1. Housing market conditions: One of the main factors to consider when buying a house in Puyallup is the housing market. Currently, the housing market in Puyallup is very competitive, which means you are likely to see bidding wars and multiple bids. Therefore, it is important to know how much you can afford in today’s market. For better understanding, use a home accessibility calculator.
2. Financial stability: Before you begin your home buying journey, it’s important to have a good credit score and a stable income. Be sure to set aside funds to cover your down payment, closing costs, and other costs related to the purchase of a house. It’s also a good plan to have an emergency fund on hand if you have unexpected expenses.
3. Long-term commitment: Buying a house is a big investment compared to renting an apartment, especially when it comes to making a long-term and financial commitment. Therefore, if you do not plan to live in Puyallup for more than a few years, it may make more sense to continue renting.
4. Personal goals: Finally, you’ll want to assess your priorities and determine your personal goals before you begin the home buying process. Do you want a house close to amenities or in a more isolated location? Are you looking for a large kitchen or simply more space?
If you are unsure if you are ready to buy, consider consulting your Real estate agent or a financial advisor to fully understand your options.
Is it competitive to buy a house in Puyallup?
Yes, the housing market in Puyallup is very competitive. Multiple bids and bidding wars are common, and buyers are quick to write bids because they’ve spent time navigating the current market. Be prepared and start working with an agent as soon as you can.
Advantages of renting a house in Puyallup
No maintenance costs
It’s okay if the stove stops working – your landlord has to pay for it. The roof leaks and needs repairs, your landlord needs to fix it, and that’s a big expense that you don’t have to consider.
Flexibility
Rent an apartment or house in Puyallup offers the advantage of flexibility. If you’re unsure of your long-term plans or prefer the freedom to explore different neighborhoods, renting gives you the flexibility to get around more easily. Whether it’s for career opportunities, personal preferences, or simply a desire for a change, renting allows you to adapt your living situation without the long-term commitment of home ownership.
Potential for lower monthly payments
Renting a house in Puyallup can allow you to have lower monthly payments. With the average apartment rent in the area being around $1,800, it may be more affordable to rent than to buy a home. To better understand your situation and make an informed decision, you can use a mortgage calculator. You can get an idea of what your monthly mortgage payment may be, allowing you to better compare between renting and buying a home.
Disadvantages of renting a house in Puyallup
Risk of rent increases
Besides the loss of appreciation and tax benefits, the main downside of renting is that the price of rent is out of your control and doesn’t last forever. Your landlord can increase the rent each year. Ask yourself, do you want to move every year because the landlord raises the rent or do you prefer to live in a house for 30 years on the same mortgage payment without worrying about it going up? As a homeowner, this stable income can help you save money for future events like travel, retirement, etc.
Lack of updates
Another downside to renting is that your landlord may not update the home with new and modern features. Home ownership gives you control to buy and install new features like a smart fridge, gas fireplace, new carpet and eco-friendly flooring.
Renting vs buying in Puyallup: the final thoughts of a real estate agent
I believe now is the perfect time to consider buying a house in Puyallup. With homes available that offer negotiation opportunities, you may not have to compete with multiple offers, making the process less competitive. Ultimately, whether you rent or buy in Puyallup, the area is a wonderful place to live. If you’re just starting to think about buying a home, make sure you’ve looked at your finances to understand what you can afford now and in the years to come.