Are you weighing the pros and cons of renting versus buying? One major factor to consider is how much homeownership can impact your net worth.
According to the Federal Reserve’s Survey of Consumer Finances, the difference is huge. Homeowners have a net worth nearly 40 times higher than renters! That’s largely due to home equity – the value of your home minus what you owe on your mortgage. When you pay down your mortgage and as home values rise, your equity (and wealth) grow.
In recent years, limited housing supply and high demand pushed home prices up, giving homeowners a big boost in equity. And while price growth has slowed, experts still predict a steady rise in home values – and that means more potential equity gains if you buy now.
Thinking about which path is right for you? Remember, it’s not only about today’s prices; it’s also about your long-term goals and the potential to build wealth over time. As Bankrate puts it, “Deciding between renting and buying a home isn’t just about cost – it’s a personal financial strategy.”
If you’re considering making a move, reach out! I’m Luisa Armas with eXp Realty, and I can help you weigh your options. Let’s discuss what makes sense for you in today’s market. Call me at 805-285-3219 – I’m here to help!
