When deciding between renting or buying a home, it’s important to consider the substantial impact homeownership can have on your net worth. The Federal Reserve's Survey of Consumer Finances reveals that homeowners, on average, have nearly 40 times more wealth than renters, largely due to home equity growth. As home values rise and mortgages are paid down, homeowners gain equity, which increases their wealth. Although housing inventory has improved slightly, prices are still expected to rise modestly next year, offering potential equity gains for buyers. Consulting a local real estate agent can provide insights into your market, helping you weigh the financial and lifestyle benefits of buying versus renting. Ultimately, if affordable, buying a home can be a powerful long-term wealth-building strategy.
