A Homeowner's Net Worth Is 40x Greater Than A Renter's

Many times before have I written about how homeownership is one of the greatest ways to begin building you and your family's wealth. And it appears the Federal Reserve agrees with me as new data released by them indicates the net worth of a homeowner is actually over 40 times greater than that of a renter. Maybe it's time to get serious on how to buy that home. 

 

Every three years the Survey of Consumer Finances shows the breakdown of how owning a homes helps to build financial security. In the graph below, we see that the average net worth of homeowners continues to grow, while the net worth of renters tends to hold fairly steady and be significantly lower than that of homeowners. The financial gap between these two groups keeps getting wider over time, making homeownership more and more desirable for those who are ready. 

Owning A Home Is A Great Way To Build Your Wealth

For many families, homeownership is a sort of 'forced savings'. Every time you pay your mortgage, you're contributing to your net worth by increasing the equity you have in your home and building your nest egg. 

The impacts of home equity is part of why Gallup reports that Americans picked estate as the best-term investment for the seventh year in a row. According to this year's survey, 35% of American's chose real estate over stocks, savings accounts, gold and bonds. 

Today, there are great opportunities available for those wanting to buy a home. Many states, like Washington and Oregon, have grant programs to assist first-time home buyers. A fully recovered housing market and historic low interest rates are giving homebuyers a big boost in purchasing power. Low inventory is working against buyers but a savvy buyer's real estate profession can help cut through most difficulties. But making a step today is the best idea. 

Bottom Line

Learn how to use your monthly housing costs to increase your family's net worth. Reach our to a trusted real estate profession today. Seriously, I mean today. 

Scott's Advice

Finding the right home for you and your family isn't always easy but it doesn't have to be hard. You need a plan for every step of the process. Your real estate professional needs a good network of lenders who will work with to fit your financial needs. You need a good agent that explains the process of home buying to ease your stress and communicates often. And you must have a real estate professional on your side that has the superior search skills to find that right home for you.

By the way, I know a guy. 

Scott C. Dickinson lives with his wife in beautiful Vancouver, WA but helps other with their real estate needs all across the US. You can reach him by phone at 360-518-7197. Check him out online at https://linktr.ee/yourbrokerscott.