The average American drops $330,000 on rent before becoming a homeowner
The typical American can expect to spend approximately $333,065 over their lifetime on renting, which includes bills and additional expenses. This averages out to $25,620 per year for renters between the ages of 22 and 35.
In Hawaii, the lifetime cost of renting is the highest among all U.S. states, reaching $599,242, or $46,096 annually. Meanwhile, Americans typically spend around $12,145 on moving costs over their lifetime as renters. Kansas residents have the lowest lifetime rental costs, at $238,225, including expenses.
Based on this data, Americans are projected to spend $333,065 across 13 years of renting, with an average yearly cost of $25,620. This includes $241,303 in rent payments over 13 years, $68,074 in utilities, and $12,145 on moving within the same state.
The research outlines the rental costs for all 50 U.S. states, which are discussed in detail below. For a thorough breakdown of the study’s methodology, please refer to the methodology section.
Currently, more than three million U.S. households earning $150,000 or more per year remain renters. While this income level is double the national average, external factors often make homeownership more challenging.
When considering lifetime rental costs, it's important to account for more than just monthly rent. Expenses such as bills, insurance, deposits, furniture, and moving fees at the end of each lease can accumulate quickly. Many renters remain in the rental market until purchasing a home around age 35.
In high-cost rental markets, such as Colorado and Washington, D.C., lifetime rental expenses can surpass $450,000. However, Hawaii leads the nation with the highest projected rental costs over 13 years, at $599,242, or $46,096 annually.