submitted by Lynne Kelleher, Berkshire Hathaway Home Services/Fox Roach Realtors Newtown Office
Lawrence Yun, chief economist for the National Association of Realtors recently wrote an article in Forbes magazine outlining the difference in wealth accumulation between homeowners and renters. The difference is astounding.
According to data collected in 2013 by the Federal Reserve, a typical homeowner’s net worth was $195,400, compared to $5400 for a renter. Based on what’s happened in the real estate market since 2013, along with conservative projections for 2016 – which is when the next report will be issued – the gap will widen to $225,000 for owners and $5000 for renters.