For many, renting remains the most affordable option amid hefty student loan debt and surging home prices. Yet, a new report found that some renters may end up spending millions.
A new report from GoBankingRates found that in San Francisco, Los Angeles, San Jose, Calif., and Seattle can cost between $2 million to $2.5 million to rent over a 35-year period, roughly from ages 25 to 60. The current median home price in San Francisco is $1.6 million, per Curbed. With high monthly rental costs, saving up for the recommended 20 percent down payment can seem impossible, yet many renters are working to keep their version of the American Dream via homeownership alive, CNBC reports.
Still, if you want to buy, you may be able to even if you don't have the money for a down payment of 20 percent. The first step is to figure out where you stand. "It's really good to have a handle on your personal finance situation," AJ Smith, VP of financial education at SmartAsset. "What your budget looks like, what you feel comfortable with, what not having that 20 percent down will do to your monthly mortgage payments."
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