Homeownership's Impact on Net Worth

Over the last six years, homeownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth. A study by the Federal Reserve formally answered this question. 

Some of the findings revealed in their report:

  • The average American family has a net worth of $77,300
  • Of that net worth, 61.4% ($47,500) of it is in home equity
  • A homeowner’s net worth is over thirty times greater than that of a renter
  • The average homeowner has a net worth of $174,500 while the average net worth of a renter is $5,100

Bottom Line:

The Fed study found that homeownership is still a great way for a family to build wealth in America. 

 

 

 

Sources: 

http://www.keepingcurrentmatters.com/2014/08/07/homeownerships-impact-on-net-worth-3/

http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf