Homeowners Aged 65+ Have 48x More Net Worth Than Renters

   First Time Home BuyersFor BuyersHousing Market Updates,Move-Up BuyersRent vs. BuySenior Market

Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. Their latest survey data covers responses from 2013-2016.

The study revealed that the median net worth of a homeowner was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.

There are many who see that statistic and point toward how broad the range of respondents are for the Federal Reserve survey. Their study includes all economic and social groups and also includes all age groups. The argument is that older respondents have a higher likelihood of being homeowners, while the homeownership rate among younger survey takers is much lower.

Recently, the Joint Center for Housing Studies at Harvard University focused on homeowners and renters over the age of 65. Their study revealed that the difference in net worth between homeowners and renters at this age group was actually 47.5 times greater!

Homeowners over the age of 65 are much more financially prepared for retirement and often own their homes outright if they were fortunate enough to purchase their homes before the age of 36. Their 30 years of mortgage payments have paid off as they gained equity through their monthly payments and as home values appreciated.

It is no surprise that lifelong-renters have had a hard time accruing net worth as the latest Censusreport shows that the Median Asking Rent has been climbing consistently over the last 30 years.

Bottom Line

As a homeowner you put your monthly mortgage payment to work for you, building your net worth with every payment.

About the Author

Gravitar forSteve Davis
Steve Davis

Steve Davis. Licensed Arizona Realtor with eXp Realty, The Davis Group. Board member with Phoenix Association of Realtors. Steve Davis has been a successful licensed real estate agent for over 30 years. Specializing in general residential real estate, luxury homes and new home construction in the Scottsdale, Phoenix, Cave Creek and Care Free markets.

Response to "Homeowners Aged 65+ Have 48x More Net Worth Than Renters"

Leave a Reply

Your email address will not be published. Required fields are marked *