The FED{Federal Reserve} conducts a Survey of Consumer Finances every 3 years. The data from this survey is collected across all economic and social groups. The latest survey, which compiled data from the years 2010-2013, reports that the net worth of a homeowner is 36 times greater than that of a renter ($194,500 vs. $5,400).

Lawrence Yun, the National Association of Realtors’ (NAR) Chief Economist predicted in a Forbes article that by the end of 2016, the net worth gap will widen even further to 45 times greater.

The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:

Put Your Housing Cost to Work for You

As previously stated in a recent post, homeownership is indeed a form of ‘savings.’ Thus, every time you make a mortgage payment, you are contributing to your net worth. Adversely, every time you pay your rent, you are contributing to your Landlord’s net worth.

The latest National Housing Pulse Survey from NAR shows that 85% of consumers believe that purchasing a home is a good financial decision. Yun comments:

“Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”

Bottom Line

If homeownership and putting your housing costs to work for you sounds attractive, Call or text me at 727.755.3434 and I would be glad to help!!