Posted: 09 Feb 2015 04:00 AM PST
Over the last six years, homeownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth. Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups.Some of the findings revealed in their report:
– The average American family has a net worth of $81,200
– Of that net worth, 61.4% ($49,856) of it is in home equity
– A homeowner’s net worth is over 36 times greater
– The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400
There are many reasons why owning a home makes sense, the Fed study shows that owning is still a great way for families to build wealth in America.