Hope Leitner, Realtor®, CRS

  Homeowner Net Worth Has Skyrocketed If you’re weighing your options to decide whether it makes more sense to  rent or buy  a home today, here’s one key data point that could help you feel more confident in making your decision. Every three years, the  Federal Reserve Board  releases the  Survey of Consumer Finances  (SCF). That report covers the difference in net worth for both homeowners and renters. Spoiler alert: the gap between the two is significant. The average homeowner’s net worth is almost 40X greater than a renter’s.  And here’s the data to prove it ( see graph below ): The Big Reason Homeowner Net Worth Is So High In the  previous version  of that report, the net worth of the average homeowner was roughly $255,000 and that of the average renter was $6,300. But in  the release  that just came out this year, the gap widened as homeowner net worth climbed dramatically. As the  Survey of Consumer Finances  (SCF) report  says : “. . . the 2019-2022 growth in median net worth wa

  A Smaller Home Could Be Your Best Option Many people are reaching the point in their lives when they need to decide where they want to live when they retire. If you’re a homeowner approaching this stage, you have several options to explore. Jessica Lautz, Deputy Chief Economist and Vice President of Research at the  National Association of Realtors  (NAR),  says : “As we see the transition of the large Baby Boomer generation age into retirement, it will be interesting to see if they move in with their Millennial and Gen Z children or if they stay put in their own homes.” Lautz lists two options: move into a  multigenerational  home with loved ones, or stay in your current house. Multigenerational living is rising in popularity, but it isn’t an option for everyone. And staying put may fit fewer and fewer of your needs. There’s a third option though, and for some, it’s the best one:  downsizing . When you  sell your house  and  purchase  a smaller one, it’s known as downsizing. Sometim