The link between financial security and homeownership is especially important today as inflation rises. But many people may not realize just how much owning a home contributes to your overall net worth. As Leslie Rouda Smith, President of the National Association of Realtors (NAR), says:
“Homeownership is rewarding in so many ways and can serve as a vital component in achieving financial stability.”
Here are just a few reasons why, if you’re looking to increase your financial stability, homeownership is a worthwhile goal.
Owning a Home Is a Building Block for Financial Success
A recent NAR report details several homeownership trends and statistics, including the difference 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.”
To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter (see visual below):
The results from this report show that owning a home is a key piece to the puzzle when building your overall net worth.
Equity Gains Can Substantially Boost a Homeowner’s Net Worth
The net worth gap between owners and renters exists in large part because homeowners build equity. As a homeowner, your equity grows as your home appreciates in value and you make your mortgage payments each month.
In other words, when you own your home, you have the benefit of your mortgage payment acting as a contribution to a forced savings account. And when you sell, any equity you’ve built up comes back to you. As a renter, you’ll never see a return on the money you pay out in rent every month.
To sum it up, NAR says it simply:
“Homeownership has always been an important way to build wealth.”
Bottom Line
The gap between a homeowner’s net worth and a renter’s shows how truly foundational homeownership is to wealth-building. If you’re ready to start on your journey to homeownership, let’s connect today.
Content previously posted on Keeping Current Matters
👉 Search Homes For Sale 🏡
👉 Search for Rentals🏡
👉 Click for this weeks Open House List 🏘️
***
Renee Harrington | Realtor (Since 2003)
Offering old fashioned customer service, using leading edge technology.
Call me! I’m at your service!! 615-943-7384 Cell
Listing Agent | Buyer’s Agent (♥ 1st Time Home Buyers), Relocation, New Construction
Cope & Associates Realty and Auction, LLC 615-384-7500
#lovewhereyoulive #TNRealtorRenee #AtYourService #LiveLoveSpringfield #springfieldtn
***
Go to Source
Powered by WPeMatico
Thinking of selling your home?
Request a free SOLD Seller’s Guide
in the mail – request it at: https://tnrealestatelistings.com/sellers
Thinking of buying a home?
Request a free Buyer’s Guide at: https://tnrealestatelistings.com/buyers
Realtor Since 2003 – Renee offers old fashioned customer service, using leading edge technology.
Specialties:
Listing Agent
Buyer’s Agent (♥ 1st Time Home Buyers & Relocation )
New Construction
Call me! I’m at your service!!
Renee Harrington | Realtor
Aspire Realty LLC| 615-212-5076 Office
Facebook:https://www.facebook.com/TNRealtorRenee/
Instagram: https://www.instagram.com/TNRealtorRenee/
Search Current MLS Listings and setup auto notifications
to receive new listings within an hour of hitting the market on my
website at: https://tnrealestatelistings.com/property-search/
#lovewhereyoulive #tnrealtorrenee #tnrealestatelistings.com #reneeharrington #soldrenee #realtor #wanttomove #relocating #relo #firsttimehomebuyer #househunting #newhome #realestate #homesearch #dreamhome #dreamhouse #beautifulhomes #realestateforsale #newconstruction #newhomes #homesforsale #homesale #home #housing #listing #forsale #location #locationlocationlocation #northofnashville #robertsoncounty #springfieldtn #crossplainstn #whitehousetn #orlindatn #portlandtn #greenbriertn #adamstn #cedarhilltn #coopertowntn #pleasantviewtn
