Here's how much long-term renters spend on average, and most affordable states for renters

By Kelly Hayes
Published  August 26, 2024 10:14am EDT
Fox TV Stations

FILE - An apartment building in Los Angeles, California, is pictured on April 24, 2024. (Myung J. Chun / Los Angeles Times via Getty Images)

The Brief

    • The average American can expect to pay $25,620 per year as a renter from ages 22 to 35.
    • Hawaii renters spend an average of $599,242 on renting over a 13-year period — the most of any U.S. state.

null - With U.S. home prices and mortgage rates still high, many Americans remain renters – often spending a large percentage of their income on housing. 

Younger adults between the age of 22 and 35 spend an average of $25,620 per year as a renter, according to new research. 

The findings, published by credit-building platform Self Financial, come from an analysis of the  average cost of rental prices, utilities, insurance, furniture, and the cost of moving over an adult renting life in all 50 U.S. states. It also factored in the cost of student accommodation over four years of college.

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Home prices are finally starting to fall

In a good sign for homebuyers, the share of available listings that saw a price cut jumped to 18.9% in July – up 3.4% from the same time last year, and the highest level in two years, according to a new report published by Realtor.com. Price cuts are atypical in July, which is usually a peak time for home sales. But this year is different, because sellers are trying to lure back lukewarm buyers who are facing both high costs and steep interest rates.

Lifetime cost of rent for average American  

The average American can expect to pay $333,065 for long-term renting, according to the research. This includes bills and additional rent-related expenses.

The findings are based on the assumption that the average U.S. resident will first enter the rental market at age 22 when they finish college and exit around the age of 35, which is considered the average age someone purchases their first home based on figures from the National Association of Realtors. 

The findings also factored in the cost of rent for each of those years, including a 3.84% yearly increase, according to Self Financial, citing the average annual rise in rent from 2000 to 2024 based on figures from the U.S. Department of Housing and Urban Development.  

Based on an average of $333,065 overall across 13 years of being a renter, that includes spending $241,303 on 13 years' worth of rent payments, and an estimated $68,074 on utilities, and $12,145 on moves within the same U.S. state, according to Self Financial’s findings.

The most expensive US states for long-term renting

When talking about renting long-term, some states stand out more than others on costs. Hawaii was found to have the highest lifetime rental costs in the study at an estimated $599,242 over a 13-year period, amounting to $46,096 per year, according to Self Financial.

Rents in Colorado pay the second-most overall at $540,772 for 13 years of rent, including expenses, and spend around $41,598 annually in the rental market. 

Washington, D.C., Maine, and California rounded out the top five most expensive U.S. states for long-term renting. 

"The Golden State, according to Zillow, also has six of the 10 costliest urban rental markets in the U.S.; with San Jose, San Diego, and San Francisco all priced at $3,000 or more per month on average to rent as of June 2023," Self Financial noted in its report.

Top 10 most expensive states for renters (13-year cost of rental + related costs)

  1. Hawaii - $599,242 
  2. Colorado - $540,772 
  3. District of Columbia - $479,998 
  4. Maine - $451,217
  5. California - $448,852
  6. Connecticut - $423,348
  7. Rhode Island - $405,749
  8. Florida - $404,904
  9. Virginia - $403,480
  10. Utah - $378,722

Most affordable US states for long-term renting

Meanwhile, Kansas stands out as the cheapest U.S. state for rent, according to Self Financial’s report. A 13-year period in the rental market, including expenses, will set tenants back an average of $238,225, or $18,325 per year. 

Wisconsin was found to be the second-cheapest state for long-term renters, paying an average of $240,913 over 13 years, and also with some of the lowest insurance premiums in the U.S. The research found that renters will pay just $1,924 for rental insurance over their lifetime, which is 50% lower than the national average.

Top 10 most affordable states for renters (13-year cost of rental + related costs)

  1. Kansas - $238,225
  2. Wisconsin - $240,913
  3. Idaho - $244,551
  4. Nevada - $244,782
  5. Mississippi - $249,329
  6. Oklahoma - $255,846
  7. Arizona - $259,413
  8. Indiana - $262,276
  9. Iowa - $264,940
  10. South Dakota - $265,281

The Source

  • Self Financial said it based its findings on Zillow’s market rate rent data to collect the median monthly rent costs for all property types and numbers of bedrooms for each state. The average cost of utilities for an apartment by state was collected from RentCafe. Renter’s insurance was also factored in, which covers a renter’s possessions, using estimates from January 2024 from Insure.com’s state-specific average cost. Additionally, the study estimated the cost to purchase some key items for a home or apartment, including a couch, coffee table, floor lamp, three beds and mattresses, and three nightstands.  

  • The story was reported from Cincinnati.