Overlooked Expenses Can Cost Renters an Extra $3,400 a Year

SAN FRANCISCO, March 21, 2019 /PRNewswire/ -- Beyond the listed rent, U.S. renters can spend $3,420 a year on costs associated with moving into and living in a rental, according to a new HotPads® analysisⁱ.

Nationally, the median rent is $1,530 per month. However, renters often pay more than that to move into and live in their home – security deposits, application fees, pet deposits, pet rent and parking can all require additional payment. In total, a typical renterⁱⁱ can spend $3,420 on these costs in a year, essentially increasing their housing expenses by $285 a month.

The total added costs are highest in San Francisco, where renters that move can spend $7,370 a year in addition to their rent. In New York, Los Angeles and Washington, D.C., renters can spend more than $5,000 a year on these costs.

Rental affordability remains a challenge as prices rise, and these extra costs can impact renters' ability to save. According to the Zillow Group Consumer Housing Trends Report, only 52 percent of renters say they could afford to cover an unexpected $1,000 expense if needed.

"As rent prices continue to rise and rent affordability remains a concern, it is important for renters to consider all their potential expenses before planning a move," said Joshua Clark, economist at HotPads. "Moving to a new apartment comes with a lot of one-time expenses -- rising rents demand equally large deposits, and saving can be an obstacle for renters considering a move. Those with cars or pets may also have to plan for additional payments that may not be reflected in the list price of a rental. Not all renters pay for parking, have a pet or move into a new place every year, but many do, and these recurring expenses can add up quickly over time."

About 35 percent of renters find it challenging to save for common upfront costs of moving, which can include the security deposit and application feesⁱⁱⁱ. Because the security deposit is typically equivalent to one month's rent, renters in expensive markets like San Jose and San Francisco typically spend the most on security deposits, while the typical application fee is highest in Washington, D.C., Austin and San Antonio.

However, the optional costs renters face – including pet deposits, pet rent and parking costs – can add up. Nationally, renters typically spend $650 a year on pet deposits and pet rent, and $1,200 a year on parking. San Francisco renters typically spend the most on pet deposits and pet rent, followed by San Jose and Los Angeles. Renters in San Francisco also typically spend the most on parking, followed by renters in Boston and New York.

HotPads is a Zillow® Group-owned apartment and home search platform for renters in urban areas across the United States. For more information on the U.S. rental market, visit HotPads.com.

HotPads

HotPads is an efficient rental search platform for urban areas across the United States, with features designed for competitive markets such as map-based search, real-time notifications and detailed information on landlords and property managers that help renters spend less time searching and more time feeling excited about their next home.

Launched in 2005, HotPads is based in San Francisco and is owned and operated by Zillow Group, Inc. (NASDAQ :Z and ZG).

HotPads is a registered trademark of Zillow, Inc.

ⁱ Includes one-time costs of moving and annual totals for recurring costs
ⁱⁱ According to the 2018 Zillow Group Consumer Housing Trends Report, about half of renters live with at least one pet. Most renters also keep at least one vehicle at home, according to the 2013-2017 American Community Survey 5-Year Estimates.
ⁱⁱⁱ 2018 Zillow Group Consumer Housing Trends Report

SOURCE Hotpads, Inc.

Related Links

http://hotpads.com

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