Let’s calculate if you should sell your house or rent it.
Promise. We will keep it simple.
Table of Contents
How Do We Know the Answer?
We basically need to compare how much you can make in both scenarios and compare.
SCENARIO 1: SELL
If you sell, you’ll increase your wealth by:
- Average money investment returns, which is around 6%.
SCENARIO 2: RENT
If you rent, you’ll change your wealth by:
- Housing price increase (increases wealth)
- Rent money you get (increases wealth)
- Maintenance costs (decrease wealth)
And we know what we need to know:
- How housing prices increase over time
- How renting prices increase over time
- How an average money investment give revenue over time
We just need your custom input to complete the picture, how much is:
- Your house valued at
- The rent
- The maintenance cost
We don’t assume your inputs because each case is different.
Assumptions
To decide if you should rent or sell, we need to know:
- The average housing price increase over time.
- The average renting price increase over time.
Here you can see year-by-year housing prices in the USA.
Nominal Values:
Year | Housing Price in $ | Rent Price in $ |
2013 | 273.600 | 904 |
2014 | 298.900 | 920 |
2015 | 302.500 | 928 |
2016 | 310.900 | 949 |
2017 | 337.900 | 982 |
2018 | 322.800 | 1023 |
2019 | 327.100 | 1062 |
2020 | 358.700 | 1096 |
2021 | 423.600 | 1191 |
2022 | 479.500 | 1,083 |
2023 | 417.700 | 1,180 |
Increase in Percentages:
Year | Housing Price Increase | Rent Price Increase |
2014 | 9.2% | 1.77% |
2015 | 1.2% | 0.87% |
2016 | 2.77% | 2.26% |
2017 | 8.68% | 3.44% |
2018 | -4.46% | 4.18% |
2019 | 1.33% | 3.81% |
2020 | 9.66% | 3.20% |
2021 | 18.09% | 8.67% |
2022 | 13.19% | -9.07% |
2023 | -12.88% | 8.96% |
AVERAGE: | 4.68% | 2.81% |
We get the housing price data of the last quarters of each year from: https://fred.stlouisfed.org/series/MSPUS
We get the renting price data from: https://ipropertymanagement.com/research/average-rent-by-year
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Nominal Values and Real Insights
Incorporating real-world data and trends, our calculator offers a glimpse into the future, presenting a detailed year-by-year breakdown of potential financial outcomes via Rent vs Sell Calculator. Whether it’s the steady appreciation of your property’s value, the consistent inflow from renting it out, or the calculated growth of invested sale proceeds, our tool demystifies the financial implications of your decision.
FAQ
Should I rent or sell my house?
It depends on market conditions, your financial situation, and long-term goals. You should use the Rent vs Sell Calculator above.
What’s the average housing price increase?
Historically, around 3% to 5% annually, varying by location. On average, 4.68%.
What are the financial benefits of selling my house?
Immediate lump sum and potential investment growth.
Is this financial advice?
No. These are just estimates for educational purposes. None of the calculations are for financial advice.