Homeownership’s Essential Ties to Wealth-Building

first_img Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles building wealth homeownership trends homeownership wealth Housing Trends 2020-11-10 Cristin Espinosa Sign up for DS News Daily Andy Beth Miller is an experienced freelance editor and writer. Her main focus is travel writing, and when she is not typing away from her computer at her home in the Hawaiian Islands, she is regularly roaming the world as a digital nomad, and loving every minute of it. She has been published in myriad online and print magazines, is a fan of all things outdoors, and finds life (and all of its business, technological, and cultural facets) fascinating in their constant evolution. She is excited to spectate as the world changes, and have a job that allows her to bring a detailed account of those constant shifts to her readers at home and abroad. Subscribe Demand Propels Home Prices Upward 2 days ago Tagged with: building wealth homeownership trends homeownership wealth Housing Trends  Print This Post Share 2Save Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Homeownership’s Essential Ties to Wealth-Building Previous: FHA’s Response to a National Health Crisis  Next: Health Crisis Makes Digital Readiness a Prioritycenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, News Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Andy Beth Miller November 10, 2020 1,074 Views A recent report from the experts at First American reveals the link between homeownership and wealth. The report specifically states that homeownership is a great way to build one’s wealth. Economists have long studied homeownership’s links to wealth, and have found owning a home to especially be beneficial in wealth-building in regards to low-income housing.In fact, First American was so adamant about how integral homeownership was in building wealth, the experts revealed that it is among one of the biggest factors: “For the majority of households that transition into homeownership, the most recent data reinforces that housing is one of the biggest positive drivers of wealth creation.”Speaking of data, the 2019 Survey of Consumer Finances, which collects various pertinent information regarding households’ finances, showed that the average homeowner possesses a staggering 40 times the household wealth of a renter (specific data pointed to roughly $254,900 for the homeowner versus $6,270 for the renter).The results of the survey do not reveal any direct cause and effect, and no expert insight is given regarding the distribution of wealth either. In light of this, when studying the variance between the wealth of renters and homeowners by income, it further strengthens the proof of the impressive wealth-building power that comes with homeownership.Specifically, data reveals that homeowners are wealthier than renters across the board, in every single income bracket (the one exception being the very top income bracket). To give you an idea with specific numbers, the income group of earners making the least amount of money—who were homeowners— posted an average net worth of $102,500. In contrast, renter households in that same income bracket were worth only $1,500. The report further revealed that in this lowest income category, 92% of total homeowner net worth was directly connected to the specific value of the residence. The Best Markets For Residential Property Investors 2 days ago Homeownership’s Essential Ties to Wealth-Building Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more