Since the Great Recession began and the housing market fell, homeownership was a less appealing avenue for acquiring wealth. Homeownership fell to lows as people were unable to pay their mortgages and renting became their only option. A new study by the Federal Reserve shows that homeownership is still the best way to grow your wealth in the United States.
Some of the findings include revealing statistics on the average American family.
- The average American family has a net worth of $77,300.
- Of that net worth, 61.4% ($47,500) is in home equity.
For homeowners, statistics are even more staggering.
- A homeowner’s net worth is over 30 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.
In order to build wealth in the United States, homeownership is a must. Not only will owning a home provide for you and your family for years to come with extra room, safety and the freedom to renovate and decorate, it will build your family’s wealth in the years to come. In fact, a recent study by Bankrate.com asked people what the two best ways to invest money you don’t need for the next 10 years. The two responses were cash and buying real estate, showing the American public’s confidence in the real estate market.
If you’re looking as a first-time home buyer or thinking about moving to a different home, contact a Shorewest, REALTORS® real estate agent near you. A Shorewest agent can help you assess your local market conditions and find a home that will help build you long-term wealth. Don’t have a Shorewest agent to contact? Call your local office to meet with a qualified professional today.
Categories: Home Buying