The Truth About Rising Prices & Family Wealth

By
Real Estate Agent

The National Association of Realtors (NAR) recently released a report revealing that the growing wealth gap in this country has been impacted by the recent increases in real estate values coupled with the drop in homeownership rates. The report discloses:

“Over 90 percent of metro areas have experienced declining homeownership rates at a time when home values have risen and incomes have remained flat.”

Increasing home values in many regions of the country have helped homeowners build housing wealth in recent years. However, the continued decline in homeownership means this increase in wealth is shared by fewer people and likely leading to worsening inequality in the U.S.

Here is a chart showing the aforementioned increasing gap between renters and homeowners in regard to family wealth:

Bottom Line

If the experts are correct, and a homeowner really will have an average of 40 times the net worth of a renter by the end of this year, doesn’t it make sense to evaluate if a purchase could be in your future? Meet with a real estate professional in your local market to find out how you can start building your family’s wealth.

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Rainer
25,344
Mari Armstrong
ArmsLink Realty - Murrells Inlet, SC
Offering You Honesty, Sincerity and Integrity

I think we all knew that we have greater net worth when we own instead of rent - I just don't think I personally realized what a huge difference it is! Thank you for the insight.

May 20, 2015 12:03 PM #1
Rainer
46,424
Kull Realty Group
Wellington, FL
Your local experts

Thanks for the feedback, Chris

May 20, 2015 12:04 PM #2
Rainmaker
3,985,335
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Paying rejnt all the years people do is like paying only interest on a home loan. NO equity realized.

May 20, 2015 01:07 PM #3
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Rainer
46,424

Kull Realty Group

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