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 difference in net worth between homeowners and renters is mostly due to the fact that homeowners accumulate equity. As a homeowner, your equity builds as the value of your property rises and you make your monthly mortgage payments.
To put it another way, when you buy a house, your mortgage payment serves as a contribution to a forced savings account. And any equity you've built up is returned to you when you sell. You will never see a return on the money you spend in rent each month as a tenant.
To put it succinctly, NAR says:
“Homeownership has always been an important way to build wealth.”
The disparity between a homeowner's and a renter's net worth demonstrates how important homeownership is to wealth accumulation. Let's connect now if you're ready to take the first step toward homeownership.