Net Worth Of Homeowners 44X Greater Than Renters

Dated: October 13 2017

Views: 305

Image title


Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. 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% increasesince 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 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 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 year’s results showed that 34% of Americans chose real estate, followed by stocks at 26% and then 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, let’s get together to discuss the process.


Blog author image

Charles Chapman

Charles Chapman has more than 25 years' experience in the Montgomery County real estate market. He has been a full-time agent through rising markets and good times, and also through falling markets an....

Latest Blog Posts

1702 Franwall Ave Silver Spring Open Sunday June 12

Gorgeous Remodeled Silver Spring Rambler1702 Franwall AvenueOpen Sunday, June 12 1:00 to 4:00Wow! Spacious, renovated and remodeled, six bedroom, three full bath rambler. Remodeled, open kitchen

Read More

History Proves Recession Does Not Equal A Housing Crisis

Some Highlights It’s important to understand history proves an economic slowdown does not equal a housing crisis. In 4 of the last 6 recessions, home prices actually 

Read More

Real Estate Market Forecast

What Does the Rest of the Year Hold for the Housing Market?If you’re thinking of buying or selling a house, you’re at an exciting decision point. And anytime you make a big

Read More