Net Worth of Homeowners 45x Greater than Renters

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Net Worth of Homeowners 45x Greater than Renters

The latest survey conducted by the Federal Reserve known as the Survey of Consumer Finances collects information from all economic and social groups. In data from 2010-2013, it was concluded that the net worth of homeowners was 36 times larger than that of a renter ($194,500 vs. $5,400.)

In an article by Forbes, Chief Economist of the National Association of Realtors (NAR) – Lawrence Yun predicted that the difference in net worth will continue to widen in 2016 to 45 times greater.

Below is a graph representing the Yun’s prediction as well as the last two Federal Reserve studies:

Net Worth of Homeowners 45x Greater than Renters

Allow Housing Costs to Work to Your Advantage
Owning a home creates “forced savings” and this greatly benefits homeowners as each payment that goes to your mortgage loan contributes to your net worth. When you pay rent it is allowing your landlord’s net worth to increase.

The National Housing Pulse Survey from the National Association of Realtors emphasizes that consumers still believe that owning a home is a good financial decision for homeowners.

Lawrence Yun further explained:

“Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”

Bottom Line

Those who are still renting but are thinking about becoming homeowners should seriously consider making the change. Buying is significantly more advantageous over time regardless of the market. Showcase Realty would love to discuss your possibilities for owning a dream home! Call us today at 704.997.3794 or send us a message here!

Are you considering Mountain Island for your next home’s location? Make sure to start your search at our Mountain Island Homes for Sale listing!

Are you looking for a new property to upgrade from your current one?

If you decide you don’t like your home we will sell it for free!*some conditions apply*

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