2016: Homeowner’s Net Worth Will Be 45x Greater Than a Renter

By
Real Estate Agent with LUXE Estates & Lifestyles NV Lic #S.70381

Every three years the Federal Reserve conducts a 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).

In a recent Forbes article the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that in 2016 the net worth gap will widen even further to 45 times greater.

The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:

Increasing Gap in Family Wealth | Simplifying The Market

Put Your Housing Cost to Work For You

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 80% of consumers believe that purchasing a home is a good financial decision. Yun comments:

“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

If you are interested in finding out if you could put your housing cost to work for you through homeownership, let's get together and discuss your options.

Posted by

 

 
 
     
Kristine Dugan    REALTOR® | Certified Residential Specialist    
Luxe Estates & Lifestyles    Keller Williams Coastal Estates    
m. 702.332.7781   | NV DRE 70381  CalBRE 01958282  
e. info@KristineDugan.com   | w. www.KristineDugan.com      
Recognized. Respected. Recommended.      
 
               
 
 
 
Please consider the environment before you print this.
 
 
close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Tags:
homeowners net worth
home ownership vs renting
net worth
homeownership is forced savings

Spam prevention
Show All Comments
Rainmaker
1,144,032
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

I knew there was a gap I just had no idea it was this large!

Great post Kristine

Oct 27, 2015 03:24 AM #1
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
50,459

Kristine Dugan

ABR, CRS, e-PRO
Ask me a question
*
*
*
*

Additional Information