Homeowners have 44x the net worth of renters.
According to the Survey of Consumer Finances, in 2016 the average net worth of a home-owning family was $231,400. Renters, by contrast, had a net worth of just $5,200. That's a 45x difference. And the future isn’t looking much better for renters, either. From 2013-2016, the average homeowner’s net worth increased 15 percent. Renters’ net worth moved as well… down - by 5%. Adjusted for inflation, renters’ net worth has sunk to its lowest level since 1989.
It's no secret that home ownership is the engine of American middle-class wealth. A mortgage in some ways is a savings account you are forced to contribute into. In fact, after paying interest, the money you pay on your mortgage is all yours (in home equity).
When you rent, however, all the money you pay each month ends up with your landlord. Not to mention that you miss out on the generous mortgage interest tax deduction that benefits homeowners roughly $71 billion a year.
Median Inflation-Adjusted Net Worth of Home Owners v. Renters, 1989-2016
Source: Survey of Consumer Finances
“It’s no secret that home ownership is the engine of American middle-class wealth.”
CFPB Report - Results on Financial Well-Being Scores by Household and Family Characteristics
In a CFPB report, homeowners have an average financial well-being score of 58. That’s higher than both renters (with an average of 49) and those who neither rent nor own (average of 50). The U.S. average financial well-being score is 54.
