Every three years, the Federal Reserve conducts a 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).
In a Forbesarticle, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that by the end of 2016, the net worth gap will widen even further to 45 times greater.
The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:
Put Your Housing Cost to Work for You
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 latestNational Housing Pulse Survey from NAR reveals that 85% of consumers believe that purchasing a home is a good financial decision. Yun comments:
there will always be discussion about whether to buy or rent, or
whether the stock market offers a bigger return than real estate, the
reality is that homeowners steadily build wealth. The simplest math
shouldn’t be overlooked.”
you are interested in finding out if you could put your housing cost to
work for you by purchasing a home, let’s get together and evaluate your
ability to buy today!