The Cost of Renting

For those who are sitting back, contemplating the renewal of their lease agreement for another year waiting for interest rates to drop and home inventory levels to climb, these prospective buyers should weigh their future purchase decisions on another factor. The impact of home equity over time.  

Home equity is the difference between the current value of your home and the outstanding balance of your mortgage. 

We know homeownership is a conduit to building wealth. In Iowa, over the last five years, homeowners on average gained $92,000 in equity. 

Or consider it another way, every year you rent vs. own is costing you on average $18,400 in lost annual accrued equity. 

That rent check written each month (Iowa average is $1,135) is traded for 30 days of occupancy. And there are no equity or appreciation gains to be made through this living arrangement. 

When you’re ready to look into homeownership, we’re here to help. Together we will construct your funding plan to best prepare you for the expectations of cost and competition in your local market at the time of your property search.