The disparity between homeowners and renters

Yesterday we discussed net worth and saw that over 50% of the average American family’s net worth comes from ownership of their home.

Today let’s compare the net worth of homeowners versus renters. According to a report from the Federal Reserve from late 2012, the average American homeowner’s net worth is over 30 times greater than that of renters.

Take a look:


In this chart, you can see that the average American homeowner’s net worth is $174,500 and the average renter’s is $5,100. What a disparity.

Owning a home is a great way to build wealth. In fact, according to a recent survey of the American public by, people believe that cash and real estate are the two best ways to invest money that is not needed for more than ten years.


The American public believes that real estate is a solid investment. This is a good sign as we continue on the road to housing recovery. As more people come into positive equity in the homes they already own and renters decide to buy, more families will be investing in their futures and building wealth. A good thing for all!

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