Dive Brief:
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Homeowners, on average, are up to 46 times wealthier than renters, says the Federal Reserve’s Survey of Consumer Finances.
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The net worth of the typical homeowner is nearly $200,000, which is between 31 and 46 times greater than the $5,000 net worth of the average renter, the survey shows.
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A good part of that net worth comes from homeowner equity.
Dive Insight:
Simply put, "it pays to be a homeowner," said David Tonna, president of the Silicon Valley Association of Realtors. He notes that aside from helping an owner gradually build wealth, homeownership strengthens neighborhoods by increasing resident involvement, which reduces crime and improves education.