Dated: 10/15/2017

Views: 115

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.

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 Wealth

As we’ve said before, simply put, homeownership is a form of ‘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

There is so much that you can do with the equity in your home! You can get a lump sum of money, or a line of credit. You can make home improvements (the #1 use), use the money to pay off your high interest credit card debt, buy another property as an investment to pay off your current home loan, emergency savings, even retirement income. Just remember, you will have to eventually pay that back and there are up and down sides to all of these options. Always consult with a financial adviser and a real estate expert before making any big decisions.

Sources: Keeping Current Matters,

Blog author image

Amanda White

Revolutionizing the Northern Nevada real estate market since January of 2015! As a lifelong resident, I have a unique expertise and love fast closes! I am a Reno native and real estate is my passion.....

Latest Blog Posts

10 Simple Ways To Turn Your Bathroom Into A Space You Love

1. Update Your VanityAre you a fan of the farmhouse look? One way to quickly add a rustic element to your bathroom is to replace your old vanity with a furniture-style vanity. An updated vanity—in

Read More

Ask Your Agent These 7 Questions

You've found your dream home and are ready to make an offer, pack your things and make that place your own. It's natural to be excited about finding a great property, but don't submit

Read More

Are You A Real Estate Loser

 Are you a real estate loser?No one likes to hear the term "loser". The term "loser" is associated with the word to lose ..... something. In my last blog at

Read More

Downsizing Your Home

All parents dream of their children growing up into adults they can be proud of.  The obvious signal that kids have reached adulthood is when they move out of the family home.  When

Read More