{"id":7246,"date":"2021-08-30T06:00:08","date_gmt":"2021-08-30T10:00:08","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7246"},"modified":"2021-08-30T06:00:08","modified_gmt":"2021-08-30T10:00:08","slug":"the-difference-in-net-worth-between-homeowners-and-renters-is-widening","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7246","title":{"rendered":"The Difference in Net Worth Between Homeowners and Renters Is Widening"},"content":{"rendered":"
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\"The<\/p>\n

Becoming financially secure is an important goal for many people today, but some don\u2019t realize just how much homeownership<\/a> can help them achieve that dream. A recent report, The Journey Toward Financial Freedom<\/em><\/a>,<\/em> surveys Americans about their perspective on financial wellness and their goals. It shows there may be a significant misconception about the role owning a home plays in building wealth:<\/span><\/p>\n

\n

\u201cHome ownership is one of the indicators Americans say is least connected to financial health<\/strong>.\u201d<\/em><\/p>\n<\/blockquote>\n

Two major personal wealth goals \u2013 homeownership and net worth \u2013 work hand-in-hand. Below are just a few reasons why, if you\u2019re looking for financial security, homeownership should be a top priority.<\/p>\n

Homeownership Is an Important Cornerstone of Building Wealth<\/strong><\/h4>\n

Every three years, the Federal Reserve<\/em> releases the Survey of Consumer Finances<\/em><\/a> which highlights the difference in wealth between homeowners and renters. The graph below shows the findings across the previous surveys including the latest data (2019), and the results are staggering:\"The<\/a>As the graph illustrates, the gap between homeowners and renters continues to widen. That\u2019s because homeownership contributes massively to an individual\u2019s overall net worth. Odeta Kushi, Deputy Chief Economist at First American<\/em>, highlights<\/a> this idea:<\/p>\n

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\u201c. . . between 2016 and 2019, housing wealth was the single biggest contributor to the increase in net worth across all income groups<\/strong> . . . .\u201d<\/em><\/p>\n<\/blockquote>\n

When we look even closer at the most recent data from 2019, the average homeowner\u2019s net worth is more than<\/strong> 40 times greater than that of the average renter <\/strong>(see graph below)<\/em>:\"The<\/a>The gap exists in large part because homeowners build equity<\/a> as their home appreciates in value and they pay off a portion of their mortgage each month. When you own your home, your monthly mortgage payment is, in essence, forced savings that come back to you when you sell your home or refinance. As a <\/strong>renter<\/strong><\/a>, you\u2019ll never see a return on the money you pay out in rent every month.<\/strong><\/p>\n

If you\u2019re ready to start building your net worth, the current real estate market offers several opportunities you should consider. For example, with today\u2019s low mortgage rates, your purchasing power<\/a> may be higher now than it has been in some time. That means there may be no better time than now to start working towards your homeownership goals \u2013 especially since rates are anticipated to rise in the coming months.<\/p>\n

Bottom Line<\/strong><\/h3>\n

Owning a home provides one of the strongest foundations for building individual wealth and lasting financial security. If you\u2019re ready to start your path towards homeownership, let\u2019s connect today.<\/p>\n

Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

\"TheBecoming financially secure is an important goal for many people today, but some don\u2019t realize just how much homeownership can help them achieve that dream. A recent report, The Journey Toward Financial Freedom, surveys Americans about their perspective on financial wellness and their goals. It shows there may be a significant misconception about the role [\u2026]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,88,84,125],"tags":[],"class_list":["post-7246","post","type-post","status-publish","format-standard","hentry","category-blog","category-first-time-home-buyers","category-for-buyers","category-rent-vs-buy"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7246"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7246\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}