• Homeownership is an investment in your future.
• There’s a reason homeownership is called the American Dream. Home is where we make memories, build our futures, and feel comfortable and secure.
• Homeownership strengthens communities. Homeowners are more likely to be involved and engaged in local issues and move less frequently than renters. This helps prevent crime, improve childhood education and support neighborhood upkeep.
Posted in Economic Updates, by Danielle Hale, Director of Housing Statistics for NAR on September 8, 2014
In the past 15 years, the net worth of the typical homeowner has ranged between 31 and 46 times that of the net worth of the typical renter.
Homeowner equity is a substantial component of homeowner wealth. The Federal Reserve’s Survey of Consumer Finances, conducted once every three years, provides a snapshot of family income and net worth along with basic demographic details and more detailed information on where families keep the wealth they have accumulated.
The most recent survey, conducted in 2013, offers a picture of the situation as home and equity prices normalized for most household balance sheets.
Data shows that median homeowners had nearly $200,000 in net worth or 36 times that of the median renter who had just over $5,000. The median value of owners’ homes was $170,000. Many households own a primary residence (65.2 percent).
It is the most commonly held non-financial assets after vehicles (86.3 percent).