2016 Homeowners Net Worth Will Be 45x Greater Than A Renter

Dated: 10/26/2015

Views: 337

2016: Homeowner’s Net Worth Will Be 45x Greater Than a Renter

2016: Homeowner’s Net Worth Will Be 45x Greater Than a Renter | Keeping Current Matters

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 recent Forbes article the National Association of Realtors’ (NAR) Chief EconomistLawrence 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:

Increasing Gap in Family Wealth | Keeping Current Matters

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 80% 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 through homeownership, meet with us today and we will guide you through the process! 

Blog author image

Sue H. Edwards

Sue specializes in both listing and selling with an array of Real Estate services and with the expertise necessary to assist clients as they realize their real estate goals. She prides herself on put....

Latest Blog Posts

Whats Happening In Liberty Alot

Lots going on in Liberty right now so be aware of the road closings, new construction, change in zonings, and much much more. Starting today road closing info below:thank you St. James Catholic

Read More

THINKING ABOUT BUILDING THAT NEW HOME

If you are thinking about building versus purchasing resale.  There are a  few things to consider.Time - this is the biggie  New home construction in Kansas City Area is 6-12

Read More

Sports For Everyone

Royals fever is starting up again and why not our Boys in Blue brought home the championship and we are looking forward to a great season!!Our Kansas city Chiefs started their playoff season

Read More

Play Chess Not Checkers

Play Chess… Not CheckersCheckers is a simple game with a simple objective; eliminate the other player’s pieces. Even the process of doing so is simple, jump the other player’s pieces and start

Read More