It’s no secret: the past several years have been rough for homeowners. There’s been a recession. There’s been the largest home market bust in history. Lots of homeowners saw their homes plummet in value. Many homeowners lost their homes altogether.
It hasn’t been good!
While it appears now that the worst is behind us, the turmoil of recent years has left many people wondering whether home ownership is such a good thing. Ownership of a home was once thought to be an excellent long-term investment. But these days, some people aren’t quite so sure about that.
Baby, You’re a Rich Man…
The questions about home ownership aren’t going away any time soon. And certainly, each individual’s circumstances are unique. Only you can decide whether home ownership is right for you.
But every three years the Federal Reserve releases a Survey of Consumer Finances. And the most recent survey reports an interesting tidbit of news for homeowners and prospective homeowners.
To quote an old Beatles song, if you’re a homeowner, “baby, you’re a rich man” – at least compared to renters. Because the latest survey shows that the net worth of homeowners, on average, is more than 36 times the net worth of renters.
The net worth of the average homeowner is nearly $200,000. The net worth of the average renter? Less than $6,000. So if you’re a homeowner, you might not feel much like a rich man (or woman). But compared to the average renter, you’ve got it made in the shade.
So, dear homeowner, how does it feel to be one of the beautiful people? (Yep, same old Beatles song.)