Buy in hot market or pay high rent?

[Nicole A.]

Hey BP! So I have a question that I never thought I'd have. Recently I have relocated full-time to Tampa, FL. As many other places, the RE market is super hot. People are buying homes site-unseen and paying more than they appraise for. I am currently renting, and my lease is not up until April 2022.

In FL, there is no rent control. My current rent is around $1600, but I see on the complex's website that my apartment is now *starting* at around $2000. So in April, my rent could increase by $400. I don't like this possibility.

But I also don't like the thought of over-paying for a house. But at least the money would be going towards an asset rather than rent? There is a house I like that is going for $425K and I feel it's truly worth more like high $300s, but that doesn't matter because people will pay the asking price or more. I'm sure this house will be pending soon and that's ok because there's always another nice house.

What would you guys do? High rent or over-priced home?