Studies show that homeowners accumulate wealth

by | Jan 25, 2021 | Blog, Real Estate | 0 comments

After the Great Recession, many people began to question whether owning a home was still a valid path to the accumulation of wealth. Several recent studies show that the answer remains a resounding “yes.”

The Federal Reserve recently reported that the median net worth for homeowners in 2019 was 40 times the net worth of renters: $255,000 versus $6,300, according to CNBC.

CoreLogic also confirmed the benefits of homeownership. In the second quarter of 2020, the company reports, American homeowners gained $620 billion in equity, or $9,800 per homeowner. For Coloradans, the number was even larger, at $10,000.

Finally, during the third quarter of 2020, ATTOM Data Solutions found that the average home seller “pocketed $85,000 compared to the original purchase price, up from an average of $66,000 in the third quarter of 2019,” reports Real Estate Insider.

In other words, “even in the midst of a pandemic, homeowners are realizing tremendous growth in wealth,” notes Real Estate Insider.

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