Faculty and Staff Home Buyer's Guide
Rent vs. Buying Comparison
The average price of rental housing in the U.S. increases 3 percent each year. That means an apartment or home renting for $1000 per month will cost more than $1300 a month in 10 years. If you rent the same home for ten years, the total amount you will pay for rent will equal $137,567.
| Year | Rent (3% Increase per Year) | Annual Rent |
|---|---|---|
| 1 | $1,000 | $12,000 |
| 2 | $1,030 | $12,360 |
| 3 | $1,061 | $12,731 |
| 4 | $1,093 | $13,113 |
| 5 | $1,126 | $13,506 |
| 6 | $1,159 | $13,911 |
| 7 | $1,194 | $14,329 |
| 8 | $1,230 | $14,758 |
| 9 | $1,267 | $15,201 |
| 10 | $1,305 | $15,657 |
| Total Rent Paid over 10 years | $137,567 |
Tax Advantage of Owning a Home Results in Savings
Home ownership has tax advantages over renting a home, and those advantages can help save you money. Unlike your monthly rent, part of your monthly mortgage payment is tax deductible.