Net Worth: Homeowners vs. Renters
“. . . between 2016 and 2019, housing wealth was the single biggest contributor to the increase in net worth across all income groups . . . .”
Odeta Kushi, Deputy Chief Economist at First American
Building our financial health is now highly affected by homeownership as recent studies reflected the widening gap of net worths between homeowners vs renters.
According to data in 2019, the average homeowner’s net worth is more than 40 times greater than that of the average renter. The gap exists in large part because homeowners build equity as their home appreciates in value and they pay off a portion of their mortgage each month. Find out more about equity here.
With today's low mortgage rates, it's becoming a very intelligent decision to buy a home and eventually obtain financial security.