Homeowners Net Worth Is Still Greater Than A Renters

Dated: 08/17/2017

Views: 307

Homeowner’s Net Worth Is Still Greater Than a Renter’s


Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter($194,500 vs. $5,400). 

The latest survey data, covering 2014-2016 will be released later this year. In the meantime, Lawrence Yun, the National Association of Realtors’ Chief Economist estimates that the gap has widened even further, to 45 times greater ($225,000 vs. $5,000)! 

Put Your Housing Cost to Work for You

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. Every time you pay your rent, you are contributing to your landlord’s net worth.

The latest National Housing Pulse Survey from NAR reveals that 84% of consumers believe that purchasing a home is a good financial decision. William E. Brown comments:

“Despite the growing concern over affordable housing, this survey makes it clear that a strong majority still believe in homeownership and aspire to own a home of their own. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighborhood remain the top reasons to own a home. 

Bottom Line

If you are interested in finding out if you could put your housing cost to work for you by purchasing a home, let’s get together and evaluate your ability to buy today!

Blog author image

Missy Starling

Missy Starling also known as "Rockstar," for her ingenious ability to be a trusted real estate extraordinaire, has been a Texas resident since 1988. She is the daughter of a retired military veteran, ....

Latest Blog Posts

6 Reasons You Should Never Buy or Sell a Home Without an Agent

6 Reasons You Should Never Buy or Sell a Home Without an Agent Manfred Rutz/Getty ImagesIt's a slow Sunday morning. You've just brewed your Nespresso and popped open your laptop 

Read More

Seven Home Ownership Myths Holding You Back?

Replace any homeownership fears with facts... Do you want to see the fears that might be holding you back in your home search?1. "I can't afford to buy a home now." FACT: If you're paying rent, you

Read More

Homebuilder sentiment improves in October as lumber prices fall

A monthly sentiment survey from the National Association of Home Builders rises one point in October to 68. Anything above 50 is considered positive.The index is unchanged from October 2017.Lumber

Read More

Rain, rain, go away. How drainage affects your property.

Rain, rain, go away. How drainage affects your property.A little rain may be just what our plants and trees need after our dry summers, but a lot of rain can become a problem for some properties.

Read More