Homeownership Boom Widens the Wealth Gap, Leaving Renters in Financial Instability
A Profile on the Wealth and Financial Well-Being of Renter Households highlights that renters today have a median net worth of just $10,400—a mere fraction of homeowners’ nearly $400,000 median net worth. According to the Aspen Institute Financial Security Program’s report, “From Rent to Riches,” the disparity is not solely due to home equity. While home equity makes up $200,000 of homeowners’ median net worth, the remainder comes from other assets that renters typically do not own, such as stocks, bonds, retirement accounts, and business equity. The report notes that 78% of homeowners own a potentially appreciating asset beyond their primary residence, compared to only 48% of renters.
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