The median renter in America has a net worth of $10,400. The median homeowner’s net worth is $400,000

5 comments

1. “The story of the housing market over the past few years has been characterized by a growing divide between “haves” and “have-nots” — those who rent and those who own a home.

   Existing homeowners in America have seen their wealth on paper explode as home prices have surged across the country. At the same time, after a slight dip in rents after the start of the Covid pandemic, rents have also spiked, eating into many people’s savings.

   The median homeowner in America has a net worth of $400,000 as of 2022, the most recent data available, while the median renter’s net worth is just $10,400, according to the report.

   That means the typical homeowner has almost 40 times as much wealth as the typical renter.

   Owning a home has long been considered one of the best ways to build wealth in the US. As a homeowner pays down their mortgage, their home equity grows, and their property’s value can appreciate.

   Homeownership itself is a major generator of wealth,” McKay said. “Just by not owning a home, there are ways that your wealth simply does not grow.
   Instead, you put more money into housing every year in rent, and someone else benefits from the value going up.”

   Still, that may not be enough for some renters to start a home search in the near future. Skyrocketing home prices aren’t the only barrier to entry: Mortgage rates remain persistently high. Grantham said she was approved for a mortgage with a 7.2% rate, which is on the higher end for a typical 30-year fixed-rate mortgage right now.

   Interest rates may not drop that much anytime soon, and we were just ready to not be renting anymore. So we were willing to make that compromise,”

2. I know a guy who was a rent forever guy even though he had a good income..

   Which was great until about 4 years ago… Now he’s got no choice but to rent…

3. Renter can move to another locale = $10400
   Homeowner can’t move to another locale = $400000 – $750000 (another home) = -$350000

   Renter come out on top, WHO CARES about unrealized gains, its the REALIZED gains that MATTER!

4. Okay I’m much higher than the net worth of an average homeowner so what do I get a cookie? This statistic is really dumb. It doesn’t bring clarity or any resolution to anything. We should be talking about income inequality at the extreme ends if we want something to change for the better. The current system of how money flows is not sustainable. The top is getting way too heavy. The concentration of wealth is unbelievable not in a good way.

5. How much of this “worth” is the house itself? With todays home prices, the value of the home is nearly all of it.

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