The Federal Reserve conducts their Survey of Consumer Finances every 3 years in which they collect data across all economic and social groups. The 2010-2013 survey reports that a homeowner’s net worth is 36 times greater than that of a renter.
The latest survey data, covering 2014-2016 will be released later this year. In the meantime, Lawrence Yun, the National Association of Realtors’ Chief Economist estimates that the gap has widened even further, to 45 times greater ($225,000 vs. $5,000)!
Put Your Housing Cost to Work for You
As I’ve said before, simply put, homeownership in Northern VA is a form of ‘forced savings.’ Every mortgage payment you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth.
“Despite the growing concern over affordable housing, this survey makes it clear that a strong majority still believe in homeownership and aspire to own a home of their own. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighborhood remain the top reasons to own a home.”
If you are interested in finding out if you could put your rent payments to work for you by purchasing a home in Northern VA, let’s get together and evaluate your ability to buy today!