Dive Brief:
-
Americans who rent instead of own their homes are, as a group, “financially fragile” by comparison, a new study by the FINRA Investor Education Foundation concluded.
-
Renters, the study showed, carry more debt, earn and save less, and are not as “financially literate” as homeowners.
-
In 2012, renters accounted for 36% of the population, up 2% from 2000, the report said.
Dive Insight:
Buying a home doesn’t erase financial woes, the study noted. Rather, consumers who are able to qualify for mortgages most likely already have less debt, higher credit scores, and more stable incomes than renters. Plus, because mortgage rates are low and rents are high, many homeowners have lower monthly housing costs than tenants.