Homeowner’s Net Worth Is 45x Greater Than A Renter’s

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Real Estate Agent with REMAX Above The Beach 103848

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 Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that by the end of 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:

Homeowner’s Net Worth Is 45x Greater Than a Renter’s | MyKCM

Put Your Housing Cost to Work for You

As 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 85% 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 by purchasing a home, let’s get together and evaluate your ability to buy today!

 

source: www.keepingcurrentmatters.com 

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Make it a great day! "Oh by the way, I'm never too busy for your referrals and greatly appreciate anyone you send my way!"

Filomena M. Thompson, Realtor ®, ABR, CDPE, CIPS, MRP, SRES, TRC
Licensed in South Carolina and Maryland
Falo Portugués/ Hablo Español

RE/MAX Above The Beach
3414 Hwy. 701 S, Conway, SC 2952
(C) 843-999-0173 / (C) 301-758-4617
filomena@filomenasellsthebeach.com / www.filomenathompson.com

 

 

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Rainmaker
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Sonja Patterson
Keller Williams - BV - College Station, TX
Texas Monthly 5-Star Realtor Recipient for the Hou

Filomena,

This is a great heads'-up for those thinking of purchasing a home.  I spoke with a young man the other day who has rented for 3 years, and I said, "you ought to buy a home!"  His credit score needs some work, however.  But, for those who have good credit--and plan on staying in one place for a few years--home ownership is the way to go!! :)

Dec 27, 2016 10:51 AM #1
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Rainmaker
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Filomena M. Thompson

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