A Home Owner’s Net worth is 36 times greater than a Renter

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Over the last six years, homeownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth. Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups.

Some of the findings revealed in their report:

  • § The average American family has a net worth of $81,200
  • § Of that net worth, 61.4% ($49,856) of it is in home equity
  • § A homeowner’s net worth is over 36 times greater than that of a renter
  • § The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400

Bottom Line

There are many reasons why owning a home makes sense, the Fed study shows that owning is still a great way for families to build wealth in America.

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Courtesy of the KCM Blog

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