The Federal Reserve conducts a Survey of Consumer Finances across various social and economic groups every 3 years. The most recent survey reports show that, on average, a homeowner’s net worth is approximately 36 times greater than the net worth of a renter ($194,500 vs. $5,400).
The National Association of Realtors’ (NAR) Chief Economist, Lawrence Yun, predicted that by the end of 2016, the net worth gap would widen even further to 45 times greater.
The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:
Put Your Housing Cost to Work for You
In simple terms, owning a home 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. Homeowner's steadily build wealth.
If you are interested in finding out if you could put your housing cost to work for you by purchasing a home, talk with us and we can guide you through the process.