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The New York Times recently published an editorial entitled, “Homeownership and Wealth Creation.” The housing market has made a strong recovery, not only in sales and prices, but also in the confidence of consumers and experts as an investment.
The article explains: “Homeownership long has been central to Americans’ ability to amass wealth; even with the substantial decline in wealth after the housing bust, the net worth of homeowners over time has significantly outpaced that of renters, who tend as a group to accumulate little if any wealth.”
The Federal Reserve conducted the Survey of Consumer Finances and found that the average net worthof a homeowner ($194,500) is 36x greater than that of a renter ($5,400).
“Homeownership requires potential buyers to save for a down payment, and forces them to continue to save by paying down a portion of the mortgage principal each month. Even in instances where renters have excess cash, saving a substantial amount is difficult without a near-term goal, like a down payment. It is also difficult to systematically invest each month in stocks, bonds or other assets without being compelled to do so.”
If you’re a renter who is considering making a purchase, call a Shorewest Agent today.
(This post was also shared by our friends at Keeping Current Matters.)
Tags: buying a home, current housing market, Home Buying, homes for sale, Housing Market, living in milwaukee, Milwaukee, milwaukee lifestyle, real estate advice, real estate market, shorewest, Shorewest Realtors, tips and advice, Wisconsin, wisconsin real estate
Categories: Home Buying
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