Homeownership has proven to be a significant wealth builder, exacerbating the wealth gap between homeowners and renters in the U.S. The average homeowner's net worth is approximately $430,000—43 times that of renters with a mere $10,000 net worth. Recent data shows that homeowners have seen a 45% increase in wealth since 2019, while renters' net worth has stagnated. Economic factors, including high home prices and elevated mortgage rates, are pushing aspiring buyers into longer rental terms, limiting their paths toward homeownership and wealth accumulation.
Homeownership is a reliable wealth builder, with the average homeowner holding a net worth 43 times greater than that of renters, even amidst economic uncertainty.
Homeowners have enjoyed a wealth increase of approximately 45% since 2019, whereas renters' net worth has stagnated, highlighting a growing wealth disparity.
While homeowners benefited from price appreciation and home equity, aspiring buyers remain priced out of the market, forcing them into rental situations.
High home prices and mortgage rates, alongside reduced homebuilding activity, will likely keep many aspiring buyers renting rather than owning, worsening the wealth gap.
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