[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f2w9g3fawf7t2e":3,"$ffeh0925h8cuz":48,"$fbwk2pqjjqsc7":52},{"item":4,"previous":36,"next":42},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":12,"body":13,"agentsBottomLine":14,"bodyImage":15,"isInfographic":16,"categories":17,"isVideo":16,"videoThumbnail":9,"videoSource":9,"publishedAt":34,"updatedAt":35},15907,"homeowner-net-worth-has-skyrocketed","Homeowner Net Worth Has Skyrocketed","\u003Cp>If you’re weighing your options to decide whether it makes more sense to rent or buy a home today, here’s one key data point that could help you feel more confident in making your decision.\u003C\u002Fp>","","blog","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20231031\u002F20231107-Homeowner-Net-Worth-Has-Skyrocketed.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20231129\u002FSTM-Banner-20220629-Blog-1-.jpg","\u003Cp>If you’re weighing your options to decide whether it makes more sense to \u003Ca href=\"\u002F2023\u002F10\u002F13\u002Fthe-difference-between-renting-and-buying-a-home-infographic\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">rent or buy\u003C\u002Fa> a home today, here’s one key data point that could help you feel more confident in making your decision. Every three years, the \u003Cem>Federal Reserve Board \u003C\u002Fem>releases the \u003Ca href=\"https:\u002F\u002Fwww.federalreserve.gov\u002Feconres\u002Fscfindex.htm\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cem>Survey of Consumer Finances\u003C\u002Fem>\u003C\u002Fa> (SCF). That report covers the difference in net worth for both homeowners and renters. Spoiler alert: the gap between the two is significant.\u003C\u002Fp>\u003Cp>\u003Cstrong>The average homeowner’s net worth is almost 40X greater than a renter’s. \u003C\u002Fstrong>And here’s the data to prove it (\u003Cem>see graph below\u003C\u002Fem>):\u003C\u002Fp>\u003Cp>\u003Ca href=\"\u002Fcontent\u002Fimages\u002F20231031\u002F20231107-Homeowner-Net-Worth-Almost-40X-Greater.png\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cimg src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20231031\u002F20231107-Homeowner-Net-Worth-Almost-40X-Greater.png\">\u003C\u002Fa>\u003C\u002Fp>\u003Ch4>\u003Cstrong>The Big Reason Homeowner Net Worth Is So High\u003C\u002Fstrong>\u003C\u002Fh4>\u003Cp>In the \u003Ca href=\"https:\u002F\u002Fwww.federalreserve.gov\u002Feconres\u002Fscf_2019.htm\" rel=\"noopener noreferrer\" target=\"_blank\">previous version\u003C\u002Fa> of that report, the net worth of the average homeowner was roughly $255,000 and that of the average renter was $6,300. But in \u003Ca href=\"https:\u002F\u002Fwww.federalreserve.gov\u002Fpublications\u002Ffiles\u002Fscf23.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">the release\u003C\u002Fa> that just came out this year, the gap widened as homeowner net worth climbed dramatically. As the \u003Cem>Survey of Consumer Finances\u003C\u002Fem> (SCF) report \u003Ca href=\"https:\u002F\u002Fwww.federalreserve.gov\u002Fpublications\u002Ffiles\u002Fscf23.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">says\u003C\u002Fa>:\u003C\u002Fp>\u003Cblockquote>\u003Cem>“. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.”\u003C\u002Fem>\u003C\u002Fblockquote>\u003Cp>\u003Cstrong>One of the biggest reasons homeowner net worth skyrocketed is \u003C\u002Fstrong>\u003Ca href=\"\u002F2023\u002F09\u002F19\u002Fyour-home-equity-can-offset-affordability-challenges\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cstrong>home equity\u003C\u002Fstrong>\u003C\u002Fa>\u003Cstrong>. \u003C\u002Fstrong>\u003C\u002Fp>\u003Cp>Over the last few years, known as the \u003Ca href=\"\u002F2023\u002F05\u002F30\u002Ftodays-real-estate-market-the-unicorns-have-galloped-off\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">‘unicorn’ years\u003C\u002Fa> for housing, home prices went through the roof. That’s because there weren’t enough homes for sale, and there was a big influx of buyers rushing to buy them and take advantage of the then record-low mortgage rates. That imbalance of \u003Ca href=\"\u002F2023\u002F09\u002F29\u002Fexplaining-todays-low-housing-supply-infographic\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">supply\u003C\u002Fa> and demand pushed prices higher and higher. As a result, most homeowners who had a home during that time saw their equity grow a lot.\u003C\u002Fp>\u003Cp>If you’re still in the middle of making your decision on whether to rent or buy, you may wonder if you missed the boat on the big net worth boost. But here’s what you need to realize. As a recent article in \u003Cem>The Ascent\u003C\u002Fem> \u003Ca href=\"https:\u002F\u002Fwww.fool.com\u002Fthe-ascent\u002Fpersonal-finance\u002Farticles\u002Famericans-net-worth-rose-37-from-2019-to-2022-heres-how-to-boost-yours\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">explains\u003C\u002Fa>:\u003C\u002Fp>\u003Cblockquote>“\u003Cem>Whether your net worth increased in recent years or not, there are steps you can take to boost that number in the coming years. . . \u003C\u002Fem>\u003Cstrong>\u003Cem>buying a home can be a great way to grow your net worth, since home values have a tendency to rise over time\u003C\u002Fem>\u003C\u002Fstrong>\u003Cem>.”\u003C\u002Fem>\u003C\u002Fblockquote>\u003Cp>Historically, \u003Ca href=\"\u002F2023\u002F10\u002F25\u002Finvest-in-yourself-by-owning-a-home\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">home prices\u003C\u002Fa> climb over time. Even now that \u003Ca href=\"\u002F2023\u002F10\u002F16\u002Fare-higher-mortgage-rates-here-to-stay\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">mortgage rates\u003C\u002Fa> are closer to 7-8%, prices are \u003Ca href=\"\u002F2023\u002F10\u002F23\u002Fwhy-home-prices-keep-going-up\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">still rising\u003C\u002Fa> in many areas of the country because supply is still low compared to demand. That’s why \u003Ca href=\"\u002F2023\u002F10\u002F11\u002Fthe-latest-expert-forecasts-for-home-prices-in-2023\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">expert forecasts\u003C\u002Fa> for the next few years call for \u003Ca href=\"\u002F2023\u002F09\u002F12\u002Fwhat-experts-project-for-home-prices-over-the-next-5-years\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">ongoing appreciation\u003C\u002Fa> – just at a pace that’s more typical for the housing market.\u003C\u002Fp>\u003Cp>While it likely won’t be the record ramp-up that happened over the last few years, people who buy now should continue to grow equity in the years ahead. That means, if you’re ready and able to buy a home today, you’ll be making an investment that’ll help build your net worth in the long run.\u003C\u002Fp>\u003Cp>As Jessica Lautz, Deputy Chief Economist at the \u003Cem>National Association of Realtors \u003C\u002Fem>(NAR), \u003Ca href=\"https:\u002F\u002Fwww.nar.realtor\u002Fblogs\u002Feconomists-outlook\u002Finstant-reaction-mortgage-rates-october-19-2023\" rel=\"noopener noreferrer\" target=\"_blank\">says\u003C\u002Fa>:\u003C\u002Fp>\u003Cblockquote>\u003Cem>“. . . when deciding to rent vs buy, one must calculate the total cost of homeownership (maintenance, utilities, commuting, etc.) and the total financial benefit. Based on new Fed data . . . \u003C\u002Fem>\u003Cstrong>\u003Cem>the median net worth of homeowners was $396,200 vs renters at $10,400. There is no question about the wealth gains that homeownership provides.”\u003C\u002Fem>\u003C\u002Fstrong>\u003C\u002Fblockquote>","\u003Cp>\u003Cspan style=\"color: black;\">If you’re on the fence about whether to rent or buy a home, remember that homeownership can give your net worth a big boost over time. If you want to learn more about this or the many other \u003C\u002Fspan>\u003Ca href=\"\u002F2023\u002F09\u002F21\u002Fthe-many-non-financial-benefits-of-homeownership\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">benefits of owning\u003C\u002Fa>\u003Cspan style=\"color: black;\"> a home, let’s connect.\u003C\u002Fspan>\u003C\u002Fp>","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20231031\u002F20231107-Homeowner-Net-Worth-Almost-40X-Greater.png",false,[18,22,26,30],{"id":19,"name":20,"slug":21},5,"For Buyers","buyers",{"id":23,"name":24,"slug":25},11,"First-Time Buyers","first-time-buyers",{"id":27,"name":28,"slug":29},38,"Move-Up","move-up",{"id":31,"name":32,"slug":33},53,"Rent vs. Buy","rent-vs-buy","2023-11-07T11:30:00Z","2024-01-29T15:41:40Z",{"id":37,"slug":38,"title":39,"featuredImage":40,"publishedAt":41,"contentType":10,"isVideo":16},15904,"reasons-to-sell-your-house-before-the-new-year","Reasons To Sell Your House Before the New Year","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20231106\u002FReasons-To-Sell-Your-House-Before-the-New-Year.png","2023-11-06T11:30:00Z",{"id":43,"slug":44,"title":45,"featuredImage":46,"publishedAt":47,"contentType":10,"isVideo":16},16465,"thinking-about-using-your-401k-to-buy-a-home","Thinking About Using Your 401(k) To Buy a Home?","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20231107\u002F20231108-Thinking-About-Using-Your-401k-to-buy-a-house.png","2023-11-08T11:30:00Z",{"cover":49,"open":50,"shareSpread":51},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Magazine-original.png",[53,57,58,62,66,70,74,75,79,83,84,88,92,96,100,101,105,109,113,117,121,125,129,133,137,141,145,149,153,157],{"id":54,"name":55,"slug":56},1,"Uncategorized","uncategorized",{"id":19,"name":20,"slug":21},{"id":59,"name":60,"slug":61},6,"For Sellers","sellers",{"id":63,"name":64,"slug":65},7,"Foreclosures","foreclosures",{"id":67,"name":68,"slug":69},8,"Infographics","infographics",{"id":71,"name":72,"slug":73},9,"Home Prices","home-prices",{"id":23,"name":24,"slug":25},{"id":76,"name":77,"slug":78},34,"Senior Market","senior-market",{"id":80,"name":81,"slug":82},35,"Mortgage Rates","mortgage-rates",{"id":27,"name":28,"slug":29},{"id":85,"name":86,"slug":87},41,"For Sale by Owner","for-sale-by-owner",{"id":89,"name":90,"slug":91},42,"Featured","featured",{"id":93,"name":94,"slug":95},45,"New Construction","new-construction",{"id":97,"name":98,"slug":99},52,"Luxury \u002F Vacation","luxury--vacation",{"id":31,"name":32,"slug":33},{"id":102,"name":103,"slug":104},80,"Time-sensitive","time-sensitive",{"id":106,"name":107,"slug":108},81,"Outdated","outdated",{"id":110,"name":111,"slug":112},147,"Internal","internal",{"id":114,"name":115,"slug":116},148,"Do Not Autopost","do-not-autopost",{"id":118,"name":119,"slug":120},320,"Inventory","inventory",{"id":122,"name":123,"slug":124},321,"Agent Value","agent-value",{"id":126,"name":127,"slug":128},322,"Affordability","affordability",{"id":130,"name":131,"slug":132},323,"Buying Tips","buying-tips",{"id":134,"name":135,"slug":136},324,"Downsize","downsize",{"id":138,"name":139,"slug":140},325,"Economy","economy",{"id":142,"name":143,"slug":144},326,"Equity","equity",{"id":146,"name":147,"slug":148},327,"Forecasts","forecasts",{"id":150,"name":151,"slug":152},328,"Selling Tips","selling-tips",{"id":154,"name":155,"slug":156},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":158,"name":159,"slug":160},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]