Owning a home is a major financial milestone and the equity you build as a homeowner adds to your wealth. With these high inflation rates right now, owning your home and building your wealth is important.
Why now could be a good time to start on your journey toward homeownership.
A report from the National Association of Realtors (NAR) details several homeownership trends, including a significant gap in net worth between homeowners and renters. It finds:
“. . . the net worth of a homeowner was about $300,000 while that of a renter’s was $8,000 in 2021.”
The average homeowner’s net worth is roughly 40 times that of a renter’s. This difference of owning a home is a key step in achieving the American Dream.
Equity Boost
The gap between owners and renters exists partly because homeowners gain equity. Equity grows as your home appreciates. As a renter, you don’t have that same opportunity. A recent article from CNET explains:
“Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you’re building equity in your home . . . When you rent, you aren’t investing in your financial future the same way you are when you’re paying off a mortgage.”
Home equity grows even more as your home appreciates in value over time. A recent article from Bankrate notes:
“Building home equity can help you increase your wealth over time, . . . A home is one of the only assets that have the potential to appreciate in value as you pay it down.”
Call and Text Steve Schappert 203-994-3950
Email broker@ctreb.com
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You are a concerned homebuyer or homeseller and you need to know what is happening in your housing market so you can make the most informed decisions possible.