Renters Save Money by Renewing Leases Instead of Moving

It is more cost effective for a renter to renew a lease than to move to a new rental unit, according to a new data analysis from Zillow.

 

In a number-crunch of 2015 U.S. Census Bureau data, Zillow determined that those who moved in the past year paid an average of $3,946 more in 2015 on rent than renters who stayed in the same unit for the past five or more years. Although rents have been on the rise across the country, Zillow noted that market rate rents—those that are advertised for new renters—increased by 5.6 percent from 2014 to 2015, compared to the 3.6 percent increase for renewed leases.

 

"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 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. 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."

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