Home Ownership is Wealth Creation
According to the 2022 Survey of Consumer Finances (SCF), the median homeowner has 38 times the household wealth of a renter. Homeowners are wealthier than renters at every income level and housing is the single largest component of net worth for most households.
This pattern has remained constant over the last three decades. On average, homeowners experience equity gains of 3% to 4% per year in the long run. But from 2019 to 2022, median home equity increased 44%, which was the largest on record over the history of the SCF.
It is safe to say that homeownership remains an important driver of wealth accumulation and the largest source of wealth among American households.