THE DIFFERENCE IN NET WORTH BETWEEN
RENTERS & HOMEOWNERS
Becoming financially secure is an important goal for many people today, but some don’t realize just how much homeownership can help them achieve that dream. Two major personal wealth goals – homeownership & net worth – work hand in hand. If you’re looking for financial security, make homeownership a top priority. Read on for a few reasons why…
Every three years, the Federal Reserve releases the Survey of Consumer Finances which highlights the difference in wealth between homeowners and renters. The graph below shows the findings across the previous surveys including the last data (2019) and the results are staggering…
The gap exists in large part because homeowners build equity as their home appreciates in value and they pay off a portion of their mortgage each month. When you own your home, your monthly mortgage payment is, in essence, forced savings that come back to you when you sell your home or refinance.
As a renter, you’ll never see a return on the money you pay out in rent every month.
Owning a home provides one of the strongest foundations for building individual wealth and lasting financial security. If you’re ready to start building your net worth, the current real estate market offers several opportunities you should consider. For example, with today’s low mortgage rates, your purchasing power may be higher now than it has been in some time. That means there may be no better time than now to start working towards your homeownership goals – especially since rates are anticipated to rise in the coming months.
Talk with a trusted real estate advisor – a REALTOR® – today, and start your path to homeownership.