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Wednesday, August 27, 2014

Homeownership's Impact on Net Worth

Homeownership's Impact on Net Worth | Keeping Current Matters

Over the last six years, homeownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth. A study by the Federal Reserve formally answered this question.

Some of the findings revealed in their report:

  • The average American family has a net worth of $77,300
  • Of that net worth, 61.4% ($47,500) of it is in home equity
  • A homeowner's net worth is over thirty times greater than that of a renter
  • The average homeowner has a net worth of $174,500 while the average net worth of a renter is $5,100
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Bottom Line

The Fed study found that homeownership is still a great way for a family to build wealth in America. ______________________________________________________________________

Summer 2014 | Things to Consider When Buying a Home | Keeping Current MattersATTENTION:If you are a real estate agent looking for more information to simply and effectively explain the impact of homeownership on a family's net worth, sign up for a Free 14 Day Trial of KCM and download the Summer Edition of our 11-page eGuide, Things to Consider When Buying A Home.

This article originally posted by Keeping Current Matters. Read more articles like this at www.KCMblog.com.