Daily Real Estate News | Home owners’ net worth is significantly higher than renters. A typical home owner’s net worth is $195,400 compared to a renter’s $5,400, according to the Federal Reserve’s last data from 2013.
The Fed’s next survey of household finances, which is conducted every three years, is due out in 2016 and the renter to home owner gap is expected to widen further due to price increases.
Lawrence Yun, chief economist for the National Association of REALTORS®, predicts the figure to jump to $225,000 to $230,000 in median net worth for home owners in 2016 and around $5,000 for renters.
If that proves correct, the typical home owner will be ahead of a typical renter by a multiple of 45 on a lifetime financial achievement scale.