Renters can save thousands of dollars by renewing a lease instead of moving to a new rental, according to a recently released analysis by Zillow—a golden opportunity to put savings toward a down payment on a home.
Researchers arrived at an average $3,946 in savings by assessing the most recent rent data from the U.S. Census Bureau. Their findings reveal that the market rate rent rose more than the rent for a tenant who remained in the same rental for five years or more: 5.6 percent versus 3.6 percent between 2014 and 2015.
The savings depend largely on location:
“Renters have a decision to make almost every year—do they stay in the same place, or should they look for a new unit?” says Dr. Svenja Gudell, chief economist at Zillow. “With the country in the middle of an affordability crisis, it’s important for renters to understand how much they can save if they renew their lease instead of finding a new rental. Nationally, rental rates have slowed and the savings from renewing are not as significant for renters today; however, in some of the hottest rental markets, where rents are still rising aggressively, continually renewing a lease can mean saving thousands of dollars.”
For more information, please visit www.zillow.com.
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