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

Dated: October 7 2020

Views: 11

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.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
Blog author image

Kathleen Comerford

Let The Comerford Group Be Your Key to Your Real Estate Success! The Comerford Group at Icon Premium Realty is a top, local team that brings to your advantage many years of combined and diverse real ....

Latest Blog Posts

Best Boca Raton Restaurants for Thanksgiving Takeout

Don't want to go through the hassle of cooking a Thanksgiving feast this year? Check out the below restaurants that are offering to-go meals.PistacheThis three-course prix fixe menu being served

Read More

Best Sarasota Restaurants for Thanksgiving Takeout

Don't want to go through the hassle of cooking a Thanksgiving feast this year? Check out the below restaurants that are offering to-go meals.Brick's Smoked MeatsBrick's family feast serves from

Read More

How to Set Up the Perfect Home Office

For some, it’s a dream to work from home. But once you finally get your remote job, you might be surprised to learn that kicking back on the couch isn’t going to get the job done. Having

Read More

Sarasota Named One of the Best Places to Live in the U.S.

The U.S. News and World Report's annual "Top 10 Best Places to Live in the U.S." report has ranked Sarasota No. 9 in their 2021-2022 edition. The list ranks metro areas taking into account

Read More