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).
- Are you tired of throwing away money each month for rent?
- Do you know that buying a home can be easier than you think?
Where do I start?
Many people think that they are forever stuck renting and they will never be able to buy a home. Find a REALTOR® to help you with the process. There are many simple remedies to credit issues, down payments, financing, etc. Utilize the information presented the Consumers services section in helping you to start the process. Let our REALTOR® members help you find the American Dream of homeownership.