Yes. Studies continue to indicate that owning, versus renting, a home is still the best way to accumulate wealth. So says The Center for Responsible Lending of Federal Reserve Board’s Survey of Consumer Finances.
A recent study found that the median net worth of home owners in 2013 was $195,400 while for a renter it was $5,400. Even after the substantial decline in wealth after the housing crisis of 2008, home ownership remains central to Americans’ ability to amass wealth. Most obviously, home owners can accrue substantial wealth through property value appreciation.
Home ownership requires buyers to save for a down payment and, as owners, those individuals have the tendency to continue saving in order to pay down on their mortgage. Renters could invest in savings but most do not. These points, and others, are discussed in the research paper by researchers at Harvard University’s Joint Center for Housing Studies and is a chapter in a new JCHS book, “Homeownership Built to Last.”
There can be lots of questions and confusion about becoming a homeowner. Need to talk about it? Contact me.