A Homeowner’s Net Worth Is 40x Greater Than a Renter’s

Dated: October 15 2020

Views: 42

One of the best ways to build your family’s financial future is through homeownership. Recent data from the Federal Reserve indicates the net worth of a homeowner is actually over 40 times greater than that of a renter. Maybe it’s time to start thinking about buying a home, especially when they’re so affordable in today’s market.

Every three years the Survey of Consumer Finances shows the breakdown of how owning a home helps build financial security. In the graph below, we see that the average net worth of homeowners continues to grow, while the net worth of renters tends to hold fairly steady and be significantly lower than that of homeowners. The gap between owning and renting just keeps getting wider over time, making homeownership more and more desirable for those who are ready.A Homeowner’s Net Worth Is 40x Greater Than a Renter’s | Keeping Current Matters

Owning a home is a great way to build family wealth.

For many families, homeownership serves as a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity you have in your home (See chart below):A Homeowner’s Net Worth Is 40x Greater Than a Renter’s | Keeping Current MattersThe impact of home equity is part of why Gallup reports that Americans picked real estate as the best long-term investment for the seventh year in a row. According to this year’s survey, 35% of Americans chose real estate over stocks, savings accounts, gold, and bonds.

Today, there are great opportunities available for those planning to buy a home. The housing market has made a full recovery, and all-time low-interest rates are giving homebuyers a big boost in purchasing power. If you’re ready, buying a home this fall can set you up to increase your net worth and create a safety net for your family’s future.

Bottom Line

To learn how you can use your monthly housing cost to build your family’s net worth, reach out to me today and I can guide you through the homebuying process.

Blog author image

Michelle Meenach

Cincinnati’s Top 3% | Sr Sales Vice President | selling Fast for Top Dollar | from Neighborhood to Luxury, I'll help you find the Home you Love As your Realtor, I bring a breadth of experience and ....

Latest Blog Posts

March 2021 Shows Continued Growth into the Spring Market

March 2021 Shows Continued Growth into the Spring MarketMedian Price Up Over Prior Year for 23rd Straight Month!While March brought increased temperatures, home prices continued a record setting

Read More

PROTECTING YOUR PRODUCTIVITY WHEN YOU WORK FROM HOME

In January, nearly a quarter of working Americans worked from home, according to the U.S. Bureau of Labor Statistics (BLS).While there are many positives to working remotely, those with

Read More

Five Ways Waiting to Sell Can Cost You THOUSANDS!

There are many factors that come into play when deciding to sell a property... and timing is right up there at the top of the list!It's important to work with a real estate professional that cares

Read More

8 Reasons To Get A Home Inspection Before You Buy A House

This house is gorgeous – it’s just perfect for us! Is there anything I should know about that’s not working as it should?”We all recognize the emotions involved;

Read More