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
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.