Renters Missed Out on $51,500 This Past Year

By
Real Estate Broker/Owner with Charles Stallions Real Estate Services

 

Renters Missed Out on $51,500 This Past Year

Rents have increased significantly this year. The latest National Rent Report from Apartmentlist.com shows rents are rising at a rate much higher than the three years leading up to the pandemic:

“Since January of this year, the national median rent has increased by a staggering 16.4 percent. To put that in context, rent growth from January to September averaged just 3.4 percent in the pre-pandemic years from 2017-2019.”

Looking back, we can see rents rising isn’t new. The median rental price has increased consistently over the past 33 years (see graph below):Renters Missed Out on $51,500 This Past Year | Keeping Current MattersIf you’re thinking of renting for another year, consider that rents will likely be even higher next year. But that alone doesn’t paint the picture of the true cost of renting.

The Money Renters Stand To Lose This Year

A homeowner’s monthly mortgage payment pays for their shelter, but it also acts as an investment. That investment grows in the form of equity as a homeowner makes their mortgage payment each month to pay down what they owe on their home loan. Their equity gets an additional boost from home price appreciation, which is at near-record levels this year.

The latest Homeowner Equity Insights report from CoreLogic found homeowners gained significant wealth through their home equity this past year. The research shows:

“. . . the average homeowner gained approximately $51,500 in equity during the past year.”

As a renter, you don’t get the same benefit. Your rent payment only covers the cost of shelter and any included amenities. None of your monthly rent payments come back to you as an investment. That means, by renting this year, you likely paid more in rent than you did in the previous year, and you also missed out on the potential wealth gain of $51,500 you could have had by owning your own home.

Bottom Line

For your NEXT Move Call or Text Charles Stallions NOW 850-476-4494 for a 5 Minute free over the phone evaluation or Email: charles@charlesstallions.com for a complete package to review at the stage you are in, no high-pressure sales pitch or obligations 

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We can help you relocate, find a job, a daycare, great places to eat shop, and play along the gulf coast. It all starts by clicking here. Put my 25 plus years to work in your best interest. Call, text 850-476-4494 or email us  

 

Comments (4)

Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Thanks for sharing very relavent information!

 National Rent Report from Apartmentlist.com shows rents are rising at a rate much higher than the three years leading up to the pandemic:

Nov 21, 2021 04:18 AM
Bill Salvatore - YVP Blog
Arizona Elite Properties - Chandler, AZ
Realtor - Valley of the Sun / golfArizona@cox.net

So agree, i am working with a couple right now. Have a wonderful Sunday, watch a little Football, but most important relax.  New (short) week starts tomorrow. bill

Nov 21, 2021 05:19 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

This is so true. We have insane rents. As a landlord I love it...lol

Nov 21, 2021 05:48 AM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I think owning makes all of the difference and your post sure does show it.

Nov 21, 2021 07:15 AM