Homeowner’s Net Worth: 45x Greater Than Renter

Homeowner’s Net Worth: 45x Greater Than Renter

Homeowner’s Net Worth: 45x greater than a renter – 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).

 

Homeowner's Net Worth

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.

Homeowner’s Net Worth

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

 

Increasing Gap in Family Wealth

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.

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.

PERSONAL NOTE:

Maricopa County still is one of the best places to make a home purchase, according to new data from RealtyTrac combining stats from the U.S. Bureau of Labor Statistics and Department of Housing and Urban Development. Among counties with populations of 100,000 or more, Arizona is a better place to buy than rent. Only Coconino (Flagstaff) and Yavapai (Prescott) counties were rated as better for renters.

People that read this article also read Rents Skyrocket: Highest Rates in almost a Decade

Brought to you by

Luxury Valley Homes
Registered TM ®

Jane E. Daley
BA (Communications)

Jeff Daley, PhD
REALTOR®, GRI, e-PRO, CLHMS
Luxury Valley Homes ® (LVH)

(480) 595-6412

About the Author:

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Jeff and Jane Daley started their careers in real estate after taking early retirement from the corporate world. They enjoy partnering with clients to meet their goals in real estate. Their success in getting it done right for their clients is their belief in education. University and formal real estate courses have been imperative in staying up to date for the benefit of their clients and their business. The Daley's started in real estate in 1999 and have helped hundreds of clients buy or sell their homes successfully. Their fiduciary responsibility to their clients is always a top priority. MILITARY SERVICE: Jeff is a U.S. Army combat veteran and served with distinction in Vietnam. Jeff and Jane Daley located their business in Scottsdale, Arizona. Their team also serves the adjacent communities of Carefree, Cave Creek, Chandler, Glendale, Mesa, Paradise Valley, Phoenix. Jeff is also available as a media resource for interviews and/or articles.
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