A Homeowners Net Worth Is 40x Greater Than A Renters

Dated: October 8 2020

Views: 27

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

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


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 a trusted Patrick Team Properties expert today who can guide you through the homebuying process.

Blog author image

Bevia Patrick

Since its inception in 1995, Patrick Team Properties has exemplified a profound commitment to its clients by providing the highest standard of service, integrity and work ethic in the field. Patri....

Latest Blog Posts

Gutter Cleaning Tips And Tricks

Gutter Cleaning Tips And Tricks Oct 29, 2020Bevia PatrickThere are some chores around the house that make you feel like you’ve really done something, giving you a sense of massive

Read More

How Down Payment Assistance Opens The Door To Homeownership

How Down Payment Assistance Opens the Door to Homeownership Many people are eager to buy a home right now while affordability continues to be a highlight of the current housing.

Read More

Why Pricing Your House Right Is Essential

Why Pricing Your House Right Is Essential In today’s real estate market, setting the right price for your house is one of the most valuable things you can do.According to the U.S.

Read More

Putting Your Vegetables To Bed This Fall

Growing and tending a garden through the spring and summer can be one of the most fulfilling and rewarding of human experiences. The harvest in the early fall is simply sublime. But cleaning all

Read More