Homeowner’s Net Worth - 40x Greater Than a Renter’s

Dated: October 11 2020

Views: 153

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

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

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 | MyKCM

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 | MyKCMThe 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, let’s connect so you have a trusted professional to guide you through the homebuying process.

Blog author image

KELLY RICKARD

I am a native Texan and real estate agent for Abby Realty in Spring, TX. I was born and raised in the Houston area; therefore, I know the city and surrounding areas well. Whether you are buying, sell....

Latest Blog Posts

Options for First-Time Homebuyers [INFOGRAPHIC]

Options for First-Time Homebuyers [INFOGRAPHIC]Some HighlightsWith a housing market this competitive, sometimes you have to think outside the box.Work with your trusted real estate advisors to

Read More

Are More Young People Are Buying Homes?

More Young People Are Buying HomesThere’s a common misconception that younger generations aren’t interested in homeownership. Many people point to the fact that millennials put off

Read More

What Does it Mean to be in a Sellers’ Market?

What Does Being in a Sellers’ Market Mean?Whether or not you’ve been following the real estate industry lately, there’s a good chance you’ve heard we’re in a serious

Read More

Real Estate: It is Still a Lack of Supply, Not a Lack of Demand

Real Estate: It’s Still a Lack of Supply, Not a Lack of DemandOne of the major questions real estate experts are asking today is whether prospective homebuyers still believe purchasing a home

Read More