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The U.S. is short 6.5 million single-family homes, according to a report released March 8. This means that the rate of household formations is outpacing the amount of homes constructed, and that spells a major inventory crunch for buyers and renters.

Given the current climate, some homeowners might be weighing whether now is the right time to sell their home, or rent out their home instead.

Before putting your home on the market in either scenario, there are certain factors one should consider:

  • Mortgage rates are still high.
  • Being a landlord is a big commitment.
  • Length of time for your move.
  • Market factors.
  • Laws in your state.


Mortgage Rates Are Still High

The average interest rate on the popular 30-year, fixed-rate mortgage is in the high 6s, the highest we’ve seen in several years. Simply put, that increased monthly payment means people cannot afford the same amount of house they could a few years ago.