Over the last several years, as so many Americans witnessed the losses that came with the collapse of the real estate market, homeownership has lost some of its allure as a financial investment.
Many homeowners suffered through the housing bust and as they did, more and more people began to question whether owning a home was truly a good way to build wealth.
There is no doubt that those were hard times. But….times change. Sometimes, it helps to take a step back and look at the bigger picture with the help of data and information from people you can trust.
The Federal Reserve conducts a Survey of Consumer Finances, every three years, and just released their most recent update a few weeks ago.
Some of the findings revealed in their report:
- The average American family has a net worth of $81,200
- Of that net worth, 61.4% ($49,856) of it is in home equity
- A homeowner’s net worth is over 36 times greater than that of a renter
- The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400
There are a number of contributing factors that come into play to create these results. Home owners are paying their mortgage (as opposed to their landlords), they benefit from tax deductions that renters do not, they fix their housing expense while renters see theirs go up each year and they enjoy the benefit of being able to sell their property many years later for a much higher price.
The Bottom Line…
The Fed study found that homeownership is still a great way for a family to build wealth in America.
We can help you understand the process, help you understand how much home you can afford and introduce you (if needed) to some of the amazing professionals we partner with.
Call us today to get started! 888-333-0075
