It appears a 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, looked into the net worth of owning a home rather than renting one. The report revealed that a homeowner’s net worth was 36 times greater than that of a renter. This data showed a homeowner’s was around $194,500 versus $5,400 of a renter throughout those years.
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. The gap is now 45 times greater with a homeowner’s net worth coming in around $225,000 versus a renter’s $5,000!
Put Your Housing Cost to Work for You
As we’ve said before, home-ownership 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 commented:
“Despite the growing concern over affordable housing, this survey makes it clear that a strong majority still believe in home-ownership. People simply 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!
Content provided by Keeping Current Matters
