Homeownership's Impact on Net Worth

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Real Estate Agent with RE/MAX Crossroads in Cuyahoga Falls and Stow, Ohio

Net worth

 

Homeownership's Impact on Net Worth

Over the last five years, homeownership has lost some of its allure as a financial investment.  As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth.  A recent study by the Federal Reserve formally answered this question.

Some of the findings revealed in their report:

  • The average American family has a net worth of $77,300
  • Of that net worth, 61.4% ($47,500) of it is in home equity
  • A homeowner's new worth is over thirty times greater than that of a renter
  • The average homeowner has a net worth of $174,500 while the average net worth of a renter is $5,100

Bottom line

The Fed study found that homeownership is still a great way for a family to build wealth in America.

If you are currently renting and are ready to buy a home and begin to build wealth for your family, call me.  I can help.

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Tony Morganti, CRS, ABR

330-352-9513

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Rainmaker
840,674
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

You hit the nail on the head with

homeowner's new worth is over thirty times greater than that of a renter

 

Jan 21, 2014 10:31 PM #1
Rainer
145,952
Andrew Payne Realtor® Richmond VA Homes For Sale~804-938-5257~
Coach House Realty - Richmond, VA
Richmond, VA, Real Estate, SRES®, NAR Green

Tony,

It's great that you shared the statistics on average net worth of homeowners versus renters.  In spite of the housing crisis that hit a low a few years ago, we're currently in an upswing.  Homeownership overall still is a wonderful investment and an excellent way to gain equity and therefore, wealth.  Have a spectacular 2014!

Jan 21, 2014 10:41 PM #2
Rainmaker
276,279
Tony Morganti
RE/MAX Crossroads in Cuyahoga Falls and Stow, Ohio - Cuyahoga Falls, OH
CRS, ABR, SRES - Cuyahoga Falls, Stow

David and Andrew - 

Thank you both for your comments.  I think this really tells the story about homeownership and I hope more renters see the light.

Jan 23, 2014 12:53 AM #3
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Rainmaker
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Tony Morganti

CRS, ABR, SRES - Cuyahoga Falls, Stow
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