Philadelphia renters who renew their lease rather than move out save almost $4,000 a year, according to a new study by Zillow.
But elsewhere in cities across the country, renters save even more by staying put instead of moving to a new place.
In San Jose, Boston and San Francisco, renters who stayed in the same unit rather than move every year save approximately $9,000 a year on payments, the study found. In New York as well as Northern New Jersey, renters who renew save about $7,000 a year.
Across the United States, rent rates have increased. However, new-renter rates, verses renewed-renter rates, have increased by an even greater amount. From the year 2014 to 2015, new-renter rates rose by 5.6 percent while rates for those who renewed their lease increased by 3.6 percent, a two percent difference.
The percentages may not seem like much of a difference, but, in many cities across the country, the savings add up.
“In some of the hottest rental markets, where rents are still rising aggressively, continually renewing a lease can mean saving thousands of dollars,” Zillow chief economist Dr. Svenja Gudell said.
Over the past five years, renter households have increased by about four million as income rates are staying relatively flat.
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“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,” Gudell said.
The millennial generation is a big part of the renting class. But while their incomes have remained largely stagnant, they are moving out regardless, according to Zillow. Millennials also appear to be renting longer than any group of renters before them.
“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 Gudell. Zillow suggests it’s worth it for renters to stick it out for a few more years.
