Some people might think that if you're renting instead of buying a home, you could be wasting money. However, while buying a house might not be the right decision for everyone, it's worth noting that renting may not hold the same monthly savings as once assumed.
As of 2018, rent prices are increasing faster than in the last two years, with the median cost climbing to $1,445. Rising rent prices could partially be voluntary, though. Among both millennials and retirees, there has been an increased demand for luxury apartments.
To help put a real value on the price of rent and homeownership, we compared how much people spend each month on rent with the average amount of time actually spend at home. After all, if you're never home to enjoy the space, what good is an overpriced apartment anyway? Read on as we break down rent prices by state to determine how many hours you should be spending at home to make each dollar count.
See for yourself
Are you getting your money's worth?
$2.06
$1.31
18.7 hours
36.3% more
compared to the average renter' in your state
It's easy to think about the cost of rent or homeownership in relation to your monthly expenses, but what about breaking it down by the hour?
Using our interactive tool, identify the state in which you live, how much you're paying in rent or homeowner expenses each month, and roughly how many hours you think you spend at home on an average day. With that information, we'll show you the cost of every hour spent at home and how it stacks up to other people in your area.
King of the castle
It's easy to think about the cost of rent or homeownership in relation to your monthly expenses, but what about breaking it down by the hour?
Using our interactive tool, identify the state in which you live, how much you're paying in rent or homeowner expenses each month, and roughly how many hours you think you spend at home on an average day. With that information, we'll show you the cost of every hour spent at home and how it stacks up to other people in your area.
King of the castle
You could be getting the most bang for your buck when it comes to renting if you live in northern states where the cold winters might keep you indoors.
Nebraska, Iowa, and Idaho had the greatest value of time spent at home compared to people's median monthly rent. If you find yourself indoors because it's too cold to go outside or the weather isn't conducive to traveling, there are still many ways to take advantage of the time. Consider catching up on rest, cleaning out your closet, or even hosting a game night. Don't think living in Nebraska means you'll always be stuck counting sheep, however. Both Lincoln and Omaha rank among the up-and-coming tech hot spots outside of Silicon Valley, helping to establish vibrant economies and innovative energy.
Money in and out
Buying a home could save you money if you compare the cost of your mortgage to the cost of renting a similar space in a similar area. But your monthly mortgage payment won't be your only expense. Experts say you should expect to spend 1 percent of your overall home cost every year on maintenance, ranging from $14,000 to $18,000 depending on where you live.
Cleaning the pool, keeping up with the lawn, and replacing defunct appliances can cost hundreds of dollars, and the money certainly adds up. Still, owning your own place can still be valuable, especially if you live in some northern states. Given the average amount of time spent at home and median expenses, the best value for homeowners can be found in West Virginia, Mississippi, North Dakota, and Kentucky. Home values aren't the only draw for living in West Virginia, either. With a median home price of $103,000 and plenty of outdoor activities like hiking and hunting, there's no shortage of quality entertainment for the time you spend outside too.
Spend wisely
Even though the adage suggests you'll always be missing out if you rent rather than buy a home, that may not necessarily be true for everyone. Beyond factoring in the dollars and cents that go into paying your rent or covering the monthly cost of home upkeep, how much time you ultimately spend at home has a lot to do with whether you're getting your money's worth when it comes to the cost of living in your area. Using the average amount of time spent inside in addition to the average cost of rent, we found sticking to an apartment in states like Nebraska, Iowa, and Idaho could be a better bet than trying to buy a home.
At Porch, we strive to make every minute you spend at home as enjoyable as possible. Instead of focusing on your growing to-do list or the nagging home improvement tasks that don't seem to get done, we can help connect you with certified professionals that you trust. Whether you need to hang a TV or assemble a new piece of furntiture, Porch can help make your home everything you want it to be. You're paying for every hour you spend at home, so shouldn't those hours be as gratifying as possible? Visit us at Porch to learn more.
Methodology
To complete this project, we used the U.S. Bureau of Labor Statistics 2016 American Time Use Survey to calculate the amount of time renters and homeowners spend in their home on a given day and in a given month. We then used the U.S. Census Bureau's 2016 American Community Survey to get the median income by household type, median rent, and median monthly homeowner expenses for all 50 states and Washington, D.C. We calculated the value of time in each state by taking the median income and dividing it by the number of minutes in a year. From there, we were able to build up to calculate the value of time renters and owners spend in their home by multiplying the value of an hour by the amount of time spent in the home.
Limitations
This project does not take into account taxes or living expenses outside of monthly rent and monthly homeowner expenses from the U.S. Census Bureau's 2016 American Community Survey. All figures are estimations based on calculations listed in the methodology section. The value of time is determined by the median annual income, which isn't representative of the entire population; however, it provides a reliable midpoint with 50 percent of people having income above that figure and 50 percent having income below that figure.
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