Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey data, covering 2013-2016 was released two weeks ago. One of the many things this study looks at is net worth of all groups of people.
The study revealed that the 2016 median net worth of homeowners was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).
These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.
Owning a home is a great way to build family net worth
As we’ve said before, simply put, homeownership is a form of a ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.
That is why, for the fourth year in a row, Gallup reported that Americans picked real estate as the best long-term investment. This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26% and then gold, savings accounts/CDs, or bonds.
Greater equity in your home gives you options:
especially if you’ve owned your home in Northern Colorado for several years. Our real estate market is very strong and chances are, your home has gained thousands of dollars in equity you may not even know about. The money stored in your home not only adds to your net worth, it also gives you many options for your family. You can use this equity to move up to the home of your dreams, plan for retirement, or pay down debt.
The Eusea Team in Fort Collins, Colorado understands how big of role your home plays in your net worth. We would love to help you study the market and capitalize on your home’s equity in a way that makes sense for your family. Contact us to get started!