Homeowner’s Net Worth > Renter’s Net Worth

Every three years, the Federal Reserve conducts their 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).  The latest survey data,  covering 2014-2016 will be released later this year. In the meantime, Lawrence Yun, the National Association of        Realtors’ Chief Economist estimates that the gap has widened even further, to 45 times greater ($225,000 vs. $5,000)!

As we’ve said before, 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 84% of consumers believe that   purchasing a home is a good financial decision. William E. Brown comments: “Despite the growing concern over  affordable housing, this survey makes it clear that a strong majority still believe in homeownership and aspire to own a home of their own. Building  equity, wanting a stable and safe environment, and having the freedom to choose their  neighborhood remain the top reasons to own a home.”

If you are interested in finding out if you could put your  housing cost to work for you by purchasing a home, call the Stovall Team today and we can guide you through the  process. At the Stovall Team we believe every family should feel confident when buying & selling a home.  We place a  premium on  customer service drawing on more than 60 years of combined   experience and out-of-the box thinking to  ensure that their Team provides the best.

Sources: Federal Reserve, National Association of Realtors, Stovall Team