{"id":21661,"date":"2024-11-13T00:52:59","date_gmt":"2024-11-13T07:52:59","guid":{"rendered":"https:\/\/woodriverweekly.com\/?p=21661"},"modified":"2024-11-11T15:16:29","modified_gmt":"2024-11-11T22:16:29","slug":"21661","status":"publish","type":"post","link":"https:\/\/woodriverweekly.com\/index.php\/2024\/11\/13\/21661\/","title":{"rendered":"Renting vs. Buying: The Net Worth Gap You Need To See"},"content":{"rendered":"

BY ANNA & MICHELLE<\/em><\/p>\n

Trying to decide between renting or\u00a0buying a home? One key factor that could help you choose is just how much homeownership can grow your net worth. Every three years, the\u00a0Federal Reserve Board<\/i>\u00a0shares a report called the\u00a0Survey of Consumer Finances<\/i>\u00a0(SCF). It shows how much wealth homeowners and renters have \u2014 and the difference is significant.<\/p>\n

On average, a homeowner\u2019s net worth is nearly 40 times higher than a renter\u2019s.<\/b>\u00a0Check out the graph below to see the difference for yourself:<\/span><\/p>\n

\"\"<\/p>\n

\u00a0<\/b><\/span>Why Homeowner Wealth Is So High<\/b><\/p>\n

In the previous version of that report, the average homeowner\u2019s net worth was about $255,000, while the average renter\u2019s was just $6,300. That\u2019s still a big gap. But in the most recent update, the spread got even bigger as homeowner wealth grew even more (see graph below):<\/span><\/p>\n

\"\"<\/p>\n

\u00a0As the SCF report\u00a0says:<\/span><\/p>\n

\u201c. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.\u201d<\/i><\/span><\/p>\n

One big reason why homeowner wealth shot up is\u00a0home equity. <\/b>Equity is the difference between your home\u2019s value and what you owe on your mortgage. You gain equity by paying down your mortgage and when your home\u2019s value goes up.<\/span>\u00a0<\/span><\/p>\n

Over the past few years, home prices have gone up a lot. That\u2019s because there weren\u2019t enough available homes for all the people who wanted one. This supply-demand imbalance pushed home prices up \u2014 and that translated into faster equity gains and even more net worth for homeowners.<\/span><\/p>\n

If you\u2019re still torn between whether to rent or buy, here\u2019s what you should know. While inventory has grown this year, in most places, there\u2019s still not enough to go around. That\u2019s why expert forecasts show prices are expected to go up again next year nationally. It\u2019ll just be at a more moderate pace.<\/span>\u00a0<\/span><\/p>\n

While that\u2019s not the sky-high appreciation we saw during the pandemic, it still means potential equity gains for you if you buy now. As Ksenia Potapov, Economist at\u00a0First American<\/i>,\u00a0explains:<\/span><\/p>\n

\u201cDespite the risk of volatility in the housing market, <\/i>homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.\u201d<\/b><\/span>\u00a0<\/span><\/p>\n

But prices and inventory are going to vary by area. So, lean on a local real estate agent.\u00a0They\u2019ll be able to give you the local trends and speak to the other financial and lifestyle benefits that come with owning a home. That crucial information will help you decide the best move for you right now. As\u00a0Bankrate<\/i>\u00a0explains:<\/span>\u00a0<\/span><\/p>\n

\u201cDeciding between renting and buying a home isn\u2019t just about cost \u2014 the decision also involves long-term financial strategies and personal circumstances.\u00a0<\/i>If you\u2019re on the fence about which is right for you, it may be helpful to speak with a local real estate agent who knows your market well. An experienced agent can help you weigh your options and make a more informed decision.\u201d<\/i><\/b><\/span><\/p>\n

Bottom Line<\/b><\/p>\n

If you\u2019re not sure if you should rent or\u00a0buy, keep in mind that if you can make the numbers work, owning a home can really grow your wealth over time. And if homeownership feels out of reach, let\u2019s connect so we can explore programs that may make buying possible.<\/span><\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

BY ANNA & MICHELLE Trying to decide between renting or\u00a0buying a home? One key factor that could help you choose is just how much homeownership can grow your net worth. Every three years, the\u00a0Federal Reserve Board\u00a0shares a report called the\u00a0Survey of Consumer Finances\u00a0(SCF). It shows how much wealth homeowners and renters have \u2014 and the […]<\/p>\n","protected":false},"author":1,"featured_media":21664,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","_pvb_checkbox_block_on_post":false,"footnotes":""},"categories":[64,82,38],"tags":[],"class_list":{"0":"post-21661","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-better-homeowners-news","8":"category-housing","9":"category-sponsored"},"_links":{"self":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/21661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/comments?post=21661"}],"version-history":[{"count":2,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/21661\/revisions"}],"predecessor-version":[{"id":21693,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/21661\/revisions\/21693"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media\/21664"}],"wp:attachment":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media?parent=21661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/categories?post=21661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/tags?post=21661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}