Homeowners net worth 41 times greater than Renters

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Here is a great article that was posted from the American National Association of Realtors showing the differences in net worth between renters and home owners. They based their research on results from a 2007 Federal Reserve Survey that provides a snapshot of family income and net worth. In 2007,  the last time this study was done, it showed that home owner’s net worth to be 46 times that of that of renter’s!! The average net worth of a homeowner was above $200,000, while the average net worth of a renter in 2007 was $5,000. 2010 is estimated to be 41 times that of Renter’s net worth, reflecting the fact that the housing market has cooled and home prices have decreased.

If you are renting and asking yourself if it is a good time to become a home owner, the answer is almost always yes. The sooner you can start building equity and paying into your mortgage, instead of putting often those same amount of monthly payments into the bank accounts of your landlord, the sooner you are starting to build your personal wealth.