Homeowners Net Worth Is Still Greater Than A Renters

Dated: 08/14/2017

Views: 72

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 YouAs 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, meet with a real estate professional in your area who can guide you through the process. 

Credit: KCM Crew (Keeping Current Matters) 



Blog author image

Michael Jory

I grew up on the Monterey Peninsula, about 5 hours drive from Reno. I moved to San Diego in 1990 to begin my career in the golf business. While in San Diego, I worked at Torrey Pines, Balboa Park and ....

Latest Blog Posts

2018 A Good Time To Sell Your Home

Homeowners looking to sell should consider 2018 an opportunity to cash in.  (Getty Images)If you’re a homeowner and have been thinking about selling, what are you waiting for? You may

Read More

HOME INSPECTIONS What To Expect

So you made an offer, it was accepted, and now your next task is to have the home inspected prior to closing. Oftentimes, agents make your offer contingent on a clean home inspection.This

Read More

The Man Behind The Reno Tahoe Industrial Center

Everyone should watch this video about the owner of the Reno-Tahoe Industrial Center. He can’t read or write and has declared bankruptcy twice and now is a billionaire. Amazing!http://www.ktvn.com

Read More

Investor Notes On LLC In Nevada Ken Angst

One of the most common ways to protect your investment property is to form a Limited Liability Corporation (LLC) and hold the title to your investment property within the LLC. Nevada law allows

Read More