Here's Who Benefited the Most From Homeownership Over the Past 10 Years
Homeownership has long been considered one of the best paths to building long-term wealth. A home provides safety, a tappable source of income and value that can be passed on to future generations.
Over the 10-year period between 2012 and 2022, the value of a median-priced home in the U.S. increased by $190,000, or a gain of $19,000 per year on average, according to a new study by the National Association of Realtors (NAR). A typical homeowner's net worth is 40 times higher than that of a renter, NAR says.
“This analysis shows how homeownership can be a catalyst for building wealth for people from all walks of life,” said Lawrence Yun, chief economist at NAR, in a press release.
But this route to wealth is not necessarily fair or evenly distributed: Some owners see their home values increase much faster than others, while certain groups are much more likely than others to own houses in the first place.