Renewing a lease was on average 2% cheaper than the market rate increase in rents over the past year according to a new Zillow analysis
Renewing a lease was on average 2% cheaper than the market rate increase in rents over the past year according to a new Zillow analysis.
Looking at rent data from 2015, the research found that those renters who moved paid an extra $3,946 compared to those who had lived in their rental for five or more years and renewed their lease.
From 2014 to 2015, renewed leases saw a 3.6% cost increase while market rates for rents were up 5.6% on average nationwide.
Boston is highlighted in the analysis for a market where renters could make significant savings by renewing; up to 86% over 5 years and a renewal increase of 4.6% compared to market rate increases of 10.5%.
"Renters have a decision to make almost every year – do they stay in the same place, or should they look for a new unit?" said Zillow Chief Economist Dr. Svenja Gudell. "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.”
With potential homeowners among the 43 million renters across the US, the ability to make savings towards a downpayment is a focus for many. Dr Gudell says that those savings are not as large this year although renters in some markets can still benefit from renewing a lease.
“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," Dr Gudell said.
Looking at rent data from 2015, the research found that those renters who moved paid an extra $3,946 compared to those who had lived in their rental for five or more years and renewed their lease.
From 2014 to 2015, renewed leases saw a 3.6% cost increase while market rates for rents were up 5.6% on average nationwide.
Boston is highlighted in the analysis for a market where renters could make significant savings by renewing; up to 86% over 5 years and a renewal increase of 4.6% compared to market rate increases of 10.5%.
"Renters have a decision to make almost every year – do they stay in the same place, or should they look for a new unit?" said Zillow Chief Economist Dr. Svenja Gudell. "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.”
With potential homeowners among the 43 million renters across the US, the ability to make savings towards a downpayment is a focus for many. Dr Gudell says that those savings are not as large this year although renters in some markets can still benefit from renewing a lease.
“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," Dr Gudell said.
