Do Homeowners Have a HIGHER Net Worth Than Renters?
Today I'm going to be talking about how a homeowner's net worth compares to that of a renter.
One of the best ways to build your family's financial future is through homeownership. And recent data from the federal reserve indicates that a net worth of a homeowner is actually over 40 times greater than that of a renter. So 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. And in the graph below, you can 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. And 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 that you have in your home. And the 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 years survey, 35% of Americans chose real estate, over stocks, savings accounts, gold, and bonds.
Today there are some great opportunities available for those planning to buy a home. The housing market has made a huge recovery and all time low interest rates are giving homeowners a big boost in purchasing power. So if you're ready and thinking about buying a home, this fall can set you up to increase your net worth and create a safety net for your family's future.
As a renter, you may be surprised at how much home you can afford at a similar monthly payment to what you're paying now. So if you want to learn how you can use your monthly housing costs to build your family's net worth and see how much you can afford at your current monthly pavement, just go ahead and give me a call or text 281-795-1858 and let's connect so that we can discuss your potential options and I can help guide you through the home buying process. If you have any questions, definitely feel free to reach out to me. Have a really great day!