Winning Strategies in Real Estate: Homeownership's Impact on Net Worth

Homeownership's Impact on Net Worth

Net worth

 

Homeownership's Impact on Net Worth

Over the last five 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.  A recent study by the Federal Reserve formally answered this question.

Some of the findings revealed in their report:

  • The average American family has a net worth of $77,300
  • Of that net worth, 61.4% ($47,500) of it is in home equity
  • A homeowner's new worth is over thirty times greater than that of a renter
  • The average homeowner has a net worth of $174,500 while the average net worth of a renter is $5,100

Bottom line

The Fed study found that homeownership is still a great way for a family to build wealth in America.

If you are currently renting and are ready to buy a home and begin to build wealth for your family, call me.  I can help.

 

Tony Morganti, CRS, ABR

330-352-9513

Comment balloon 3 commentsTony Morganti • January 22 2014 06:29AM

Comments

You hit the nail on the head with

homeowner's new worth is over thirty times greater than that of a renter

 

Posted by David Popoff, Realtor®,SRS, Green ~ Fairfield County, Ct (DMK Real Estate ) over 4 years ago

Tony,

It's great that you shared the statistics on average net worth of homeowners versus renters.  In spite of the housing crisis that hit a low a few years ago, we're currently in an upswing.  Homeownership overall still is a wonderful investment and an excellent way to gain equity and therefore, wealth.  Have a spectacular 2014!

Posted by Andrew Payne Realtor® Richmond VA Homes For Sale~804-938-5257~, Richmond, VA, Real Estate, SRES®, NAR Green (Coach House Realty) over 4 years ago

David and Andrew - 

Thank you both for your comments.  I think this really tells the story about homeownership and I hope more renters see the light.

Posted by Tony Morganti, CRS, ABR - Cuyahoga Falls, Stow (RE/MAX Crossroads in Cuyahoga Falls and Stow, Ohio) over 4 years ago

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