• Josh Valjan

Homeownership’s Impact on Net Worth


Over the last five 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 recent study by the Federal Reserve formally answered this question.

Some of the findings revealed in their report:

  1. The average American family has a net worth of $77,300

  2. Of that net worth, 61.4% ($47,500) of it is in home equity

  3. A homeowner’s net worth is over thirty times greater than that of a renter

  4. The average homeowner has a net worth of $174,500 while the average net worth of a renter is $5,100

Bottom Line

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

If you are a real estate agent and want a full explanation of how homeownership builds wealth along with powerful visuals you can use to better inform your buyers on this issue, we cover the topic at length in the October edition of KCM. Members can login to the member area. Not yet a member, try a FREE 14 Day Trial Membership.

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