Net Worth: A Homeowner’s is 36x Greater Than A Renter

    1Net-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.

    Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups.

    Some of the findings revealed in their report:

    • The average American family has a net worth of $81,200
    • Of that net worth, 61.4% ($49,856) of it is in home equity
    • A homeowner’s net worth is over 36 times greater than that of a renter
    • The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400

    Bottom Line

    There are many reasons why owning a home makes sense, the Fed study shows that owning is still a great way for families to build wealth in America.

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