A Homeowners Net Worth Is 45x Greater Than A Renters

Dated: 07/23/2016

Views: 200

A Homeowner’s Net Worth is 45x Greater Than a Renter’s!

A Homeowner’s Net Worth is 45x Greater Than a Renter’s! | MyKCM

Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).

In a Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that in 2016 the net worth gap will widen even further to 45 times greater.

The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:

A Homeowner’s Net Worth is 45x Greater Than a Renter’s! | MyKCM

Put Your Housing Cost to Work for You

Simply put, homeownership 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.  Why not build your own net worth by calling me today. Bonnie Lelak 404-788-2580

The latest National Housing Pulse Survey from NAR reveals that 85% of consumers believe that purchasing a home is a good financial decision. Yun comments:

“Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”

Bottom Line

If you are interested in finding out if you could put your housing cost to work for you by purchasing a home, let’s get together to discuss your next steps. Give me a call today at 404-788-2580! I'm never too busy to help! Bonnie

Use the buttons below to share with your Personalized Posts profile...

Blog author image

Bonnie Lelak

Experience with regular home sales, short sales, foreclosures, HUD homes, no down payment program homes, investors who flip homes or buy rentals, commercial properties, land sales, lake front properti....

Want to Advertise on this Site?

Latest Blog Posts

5 Reasons To Sell This Winter

Here are five reasons listing your home for sale this winter makes sense.1. Demand Is StrongThe latest Buyer Traffic Report from the National Association of Realtors (NAR) shows

Read More

Median Days On The Market Drops To 34

Some Highlights:The National Association of REALTORS® surveyed their members for their Confidence Index.The REALTORS® Confidence Index is a key indicator of housing market

Read More

The Real Reason Home Prices Are Increasing

There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient (data shows this is

Read More

2 Charts That Show The Truth About Home Affordability

There is a lot of discussion about the current state of housing affordability for both first-time and move-up buyers, and much of the narrative is tarnished with a negative slant. However, the truth

Read More