Homeownership’s Impact on Net Worth

  • Megan Douglas
  • 08/17/14

Over the last six 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. But, millenial’s strong belief in the American Dream has been turning the market for several strong months. A 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 net 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 a great way for a family to build wealth in America. So, when are you ready to get started looking for your next home? No matter if you’re going to start looking in 1 month or 12, contact me to discuss getting prepared for your home search.

 

 

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I genuinely care about my clients. (In fact, they’re often surprised by how much so!) But this is a major step in anyone’s life and I want it to be the best experience possible.

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