Is It Time To Rent or Buy? Here's What You Should Know
Trying to decide whether to rent or buy a home? Let me share a key factor that might tip the scales—how much homeownership can grow your net worth.
Every three years, the Federal Reserve releases its Survey of Consumer Finances (SCF), which tracks the wealth of homeowners versus renters. Spoiler alert: the difference is jaw-dropping. On average, homeowners have nearly 40 times more wealth than renters.
In the previous report, the average homeowner’s net worth was about $255,000, compared to a renter’s $6,300. Fast forward to the most recent report, and the gap has widened even more. Why? One word: equity.
Equity is the value you build in your home over time by paying down your mortgage and benefiting from home price appreciation. And in recent years, limited housing supply has driven home prices up significantly, meaning homeowners gained equity even faster.
If you're wrestling with the decision to rent or buy, consider this: while home prices aren't skyrocketing as they did during the pandemic, they're still expected to grow steadily next year. That means buying now could set you up for future equity gains.
Of course, this decision isn’t just about numbers—it’s also about your goals and lifestyle. A local real estate agent can help you weigh the pros and cons, understand market trends in your area, and explore programs that might make homeownership more accessible.
Bottom Line:
Owning a home isn’t just a place to live—it’s an investment in your future wealth. If you’re unsure where to start, I’d love to help you navigate your options. Let’s connect and figure out the best path for you!
