Home owners are building net worth at a pace that is up to quadruple that of a renter.
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In the past 15 years, the net worth of the typical home owner has ranged between 31 and 46 times that of the net worth of the typical renter, according to the Federal Reserve’s Survey of Consumer Finances, which is based on 2013 data.
On average, home owners had nearly $200,000 in net worth compared to the average $5,000 net worth of renters, according to the survey.
“Home owner equity is a substantial component of home owner wealth,” Danielle Hale, research economist at the National Association of REALTORS®, writes on the association’s Economists’ Outlook blog.