Retirement

Why Do Renters Have to Save More?

The infographic starts with a vector image of two houses, side-by side, both well-appointed and attractive. Above the houses is text that reads: Why do Renters Have to Save More? When preparing for retirement, what’s the difference between owning and renting?

The infographic starts with a vector image of two houses, side-by side, both well-appointed and attractive. Above the houses is text that reads: Why do Renters Have to Save More? When preparing for retirement, what’s the difference between owning and renting?

Continuing down, the houses have realtor’s shingles out front with the following statistics: Homeowners should save 5.25 times their salary to retire at 68. Renters should save 8 times their salary to retire at 68.

Continuing down, the houses have realtor’s shingles out front with the following statistics: Homeowners should save 5.25 times their salary to retire at 68.

Below there are two similar images of lines signifying a city map and a pinned highlight, side by side. The text reads: housing prices increased by an average of 18.5%* in the last three years, while rent increased an average of 16.5% during the same time period.

Renters should save 8 times their salary to retire at 68.

Below there are houses with pinned highlights signifying a lightbulb and a car. The text reads: there are other pros and cons to renting versus owning a home. Homeowners may face larger mortgage payments when interest rates are high. Rates on a 30-year mortgage are around 7%.

Photo of a city map and a pinned highlight stacked on top. The text reads: housing prices increased by an average of 18.5%* in the last three years.

Lastly, there is a stylized sofa, houseplant, and lamp. The text above it reads: but those same high interest rates can cause rents to increase as well. Your lifestyle can affect your retirement strategy.

Photo of a city map and a pinned highlight stacked on top. The text reads: In the U.S. rent increased an average of 16.5% in the last three years.

Disclosure: Past performance does not guarantee future results. The return and principal value of home prices will fluctuate over time as market conditions change. When sold, a home may be worth more or less than its original cost. In part, rent prices are determined by supply and demand factors. Other factors that determine rent prices include location and square footage. There can be no guarantee that that rents will continue to increase or decrease in a particular geographic area. Sources: 1. Yahoo Life, April 12, 2023, 2. StLouisFed.org, 2024. For the period January 2021 to January 2024, 3. Rent.com, April 15, 2024. For the period January 2021 to January 2024, 4. StLouisFed.org, 2024.

Below there are houses with pinned highlights signifying a lightbulb and a car. The text reads: there are other pros and cons to renting versus owning a home. Homeowners may face larger mortgage payments when interest rates are high. Rates on a 30-year mortgage are around 7%.

Lastly, there is a stylized sofa, houseplant, and lamp. The text above it reads: but those same high interest rates can cause rents to increase as well. Your lifestyle can affect your retirement strategy.

Disclosure: Past performance does not guarantee future results. The return and principal value of home prices will fluctuate over time as market conditions change. When sold, a home may be worth more or less than its original cost. In part, rent prices are determined by supply and demand factors. Other factors that determine rent prices include location and square footage. There can be no guarantee that that rents will continue to increase or decrease in a particular geographic area. Sources: 1. Yahoo Life, April 12, 2023, 2. StLouisFed.org, 2024. For the period January 2021 to January 2024, 3. Rent.com, April 15, 2024. For the period January 2021 to January 2024, 4. StLouisFed.org, 2024.

Have A Question About This Topic?

Related Content

Washington Policy Research: Key Takeaways from the Tax Bill

Washington Policy Research: Key Takeaways from the Tax Bill

Just before the July 4 holiday, Congress passed a significant piece of tax legislation, coined the One Big Beautiful Bill.

Five for Friday – June 5, 2026

Five for Friday – June 5, 2026

Ross talks about AI disruption, whether the market is in a state of “blissful ignorance,” and how 2026 is shaping up so far.

Coaches

Coaches have helped you your whole life, in ways big and small. We'd like to be one of them.