Every three years, theÂ Federal ReserveÂ conducts their Survey of Consumer FinancesÂ inÂ which they collect data across all economic and social groups.Â The latest survey data, covering 2013-2016 was released two weeks ago.
The study revealed that the 2016 median net worth of homeowners was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).
These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.
Owning a home is a great way to build family wealth
As weâ€™ve said before, simply put, homeownership is a form of â€˜forced savings.â€™ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.
That is why, for the fourth year in a row, Gallup reported that Americans picked real estate as the best long-term investment. This yearâ€™s results showed that 34% of Americans chose real estate, followed by stocks at 26% and thenÂ gold, savings accounts/CDs, or bonds.
Greater equity in your home gives you options
If you want to find out how you can use the increased equity in your home to move to a home that better fits your current lifestyle, letâ€™s get together to discuss the process.
Source: Keeping Current Matters