Realvolution

Published May 15, 2025

Net Worth: Owning vs Renting

Author Avatar

Written by Jeslyn Schillinger

Graph of Median Net Worth Between Owners and Renters

Homeownership continues to be a powerful tool for building wealth in the U.S. According to the National Association of Realtors (NAR), the median net worth of homeowners is approximately $400,000, compared to just $10,000 for renters—a staggering 40:1 ratio .(Wikipedia)

This wealth disparity is largely due to home equity, which serves as a "forced savings" mechanism. As homeowners pay down their mortgages, they accumulate equity, often the largest component of their net worth. In fact, home equity accounts for 50% to 70% of net wealth for Americans in the middle-income brackets .(Wikipedia)

Beyond financial gains, owning a home provides stability and the opportunity to build generational wealth. While renting offers flexibility, it typically lacks the wealth-building benefits associated with homeownership.

For those aiming to enhance their financial future, investing in a home remains a proven and effective strategy.

Learn more about increasing your net worth through real estate by contacting us!


Categories

Wealth Building, Homebuyer Updates

Tags

Columbia, Lake of the Ozarks, Holts Summit, Waynesville, Fulton, Homebuyer Updates, Real Estate, Ashland, houseexpert, Estes Group Powered by Place, Jefferson City, Keller Williams LO Realty, Lebanon, Saint Robert, Keller Williams Realty, Estes Group, PLACE
Agent profile image in chat bubble
Agent profile image in chat header

Jamie Estes

Operating Partner | Estes Group Powered by Place | Keller Williams LO Realty

Agent profile image in message

I agree to receive automated marketing calls and texts (SMS/MMS) from Estes Group Powered by Place | Keller Williams LO Realty, its affiliates and their agents. Msg & data rates may apply. Msg frequency varies. Reply STOP to cancel. Consent is not required for purchase. I also agree to the Terms of Use and Privacy Policy.

home

Are you buying or selling a home?

Buying
Selling
Both
home

When are you planning on buying a new home?

1-3 Mo
3-6 Mo
6+ Mo
home

Are you pre-approved for a mortgage?

Yes
No
Using Cash
home

Would you like to schedule a consultation now?

Yes
No

When would you like us to call?

Thanks! We’ll give you a call as soon as possible.

home

When are you planning on selling your home?

1-3 Mo
3-6 Mo
6+ Mo

Would you like to schedule a consultation or see your home value?

Schedule Consultation
My Home Value

or another way