Excerpt from: Ski Resort Market Trends and Statistics
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| February 24, 2009 | | Home owners have greater net wealth than renters | One of the debates resurfacing right now is the buying v. renting debate. However, in terms of net wealth, home owners tend to do better than renters.
As part of his insights in real estate investing v. stock investing, Ken Deshaies at SnowHome points this out:
[H]omeowners
accumulate significantly more wealth than renters. According to the
most recent Federal Reserve Survey of Consumer Finances, the median net
wealth of a renter household is $4,800, while the median net wealth of
a homeowner household is $171,700. Clearly, owning a home is the best
way for most families to build a nest egg. Homeowners can then use
their home equity to get cash for emergencies as well as for the
purchase of big-ticket items, and have more confidence in housing
wealth gains than stock gains that could be unsustainable. In addition,
the capital gains that owners realize from the sale of their home are a
significant source of down payment funds for most repeat buyers; those
funds are also used for other purposes that stimulate the economy
through consumer spending. | | |
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