If you want to grow wealth, it appears home ownership is one of the best ways. The net worth of homeowners’ is much greater than renters. And the gap continues to grow between the two groups each year.
We know it is better to own your home but just how much better is it? One study shows that a homeowner’s net worth is 40x greater than that of renters. Home ownership is one of the best ways to build family wealth.
Based on the graph, a renter’s net wealth has held steady over the past several years while a homeowner’s net wealth continues to increase gradually year after year, which is widening the gap between the two groups.
Home ownership is a form of forced savings with the owner putting money towards their equity every month. According to Gallup, Americans have selected home ownership as the best form of long-term investment for the past seven years.
Which type of investment do you feel provides the greatest return?
Still trying to decide? Rent or buy?