Homeownership is the Top Contributor to Net Worth

Dated: 10/08/2019

Views: 54

Many people plan to build their net worth by buying CDs or stocks, or just having a savings account. Recently, however, Economist Jonathan Eggleston and Survey Statistician Donald Hays, both of the U.S. Census Bureau, shared the biggest determinants of wealth,

“The biggest determinants of household wealth [are] owning a home and having a retirement account.” (Shown in the graph below):

Homeownership is the Top Contributor to Your Net Worth | MyKCMThis does not come as a surprise, as we often mention that homeownership can help you to increase your family’s wealth. This study reinforces that idea,

 “Net worth is an important indicator of economic well-being and provides insights into a household’s economic health.”

Having equity in your home can help your family move in that direction, building toward substantial financial growth. According to the report noted above, people are not only creating net worth in the homes they live in, but many are also earning equity in rental property investments too. (See below):Homeownership is the Top Contributor to Your Net Worth | MyKCMJohn Paulson said it well,

If you don’t own a home, buy one. If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.”

Bottom Line

There are financial and non-financial benefits to owning a home. If you would like to increase your net worth, let’s get together so you can learn all the benefits of becoming a homeowner.

Blog author image

Curtis Johnson

Curtis is a Best Selling Author, the Founder and CEO of The Curtis Johnson Team Powered By eXp Realty, where he runs a dynamic Real Estate Team having sold 5,000 residential homes. The Wall Street Jou....

Latest Blog Posts

More Insight on Our Economic Recovery

More Insight on Our Economic RecoveryAs we continue to work through the health crisis that plagues this country, more and more conversations are turning to economic recovery. While we look for signs

Read More

Our Nation's Homeownership Rate Rises to Highest Point in 8 Years

Our Nation's Homeownership Rate Rises to Highest Point in 8 YearsFor nearly two months, most of us have been following strict stay-at-home orders from our state and local governments. It is a whole

Read More

The Housing Market Is a Powerful Economic Driver. Here's Why:

The Housing Market Is a Powerful Economic Driver. Here's Why:With businesses starting to slowly open back up again in some parts of the country, it’s important to understand how housing can

Read More

Is it Smart to Buy a Home Now? Simply Put: Yes.

Is it Smart to Buy a Home Now? Simply Put: Yes.Through all the volatility in the economy right now, some have put their search for a home on hold, yet others have not. According to ShowingTime,

Read More