The Net Worth of A Homeowner is 44X Greater Than A Renter!

Dated: 08/21/2018

Views: 259


Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. Their latest survey data, covering 2013-2016 was recently released.

The study revealed that the median net worth of a homeowner was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.

Owning a home is a great way to build family wealth

As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.

That is why, for the fifth year in a row, Gallup reported that Americans picked real estate as the best long-term investment. This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26% and then gold, savings accounts/CDs, or bonds.

Greater equity in your home gives you options

If you want to find out how you can use the increased equity in your home to move to a home that better fits your current lifestyle, let’s get together to discuss the process.

 


 

Disclaimer: Article sources from Eric Halsor at Lending Hand Mortgage

To view the Survey of Consumer Finances, click here.

Latest Blog Posts

7 Signs You're Ready to Sell Your House

Should I sell my house? If you've been asking yourself this question lately, we've got good news: It's a great market for sellers! Limited inventory continues to drive home prices up, and the

Read More

First-Time, Move-Up Buyers Face Rising Competition

Lower mortgage rates have drawn out more buyers this fall, but the rapidly shrinking inventory of lower-cost homes—the properties highest in demand—are making it difficult for them to

Read More

Why Fall May Be the Best Time to Buy a House

Most people believe that Spring is the best time to buy a house. It is. There are definitely more houses listed in the Spring than any other time of year. However, the Fall season is a second runner

Read More