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There’s a reason homeownership is called the American Dream – and the numbers back it up.

According to Barry Habib from MBS Highway and data from the National Association of Realtors (NAR):

  • Two-thirds of an individual’s net worth comes from home equity
  • A homeowner’s net worth is 43 times greater than that of a renter

As of mid-2025, Realtor.com and NAR reported that:

  • The median homeowner’s net worth is about $430,000
  • The typical renter’s net worth is around $10,000

It’s a striking difference and it’s not just about owning a house. It’s about building stability, security, and long-term financial strength.

Why Homeownership Builds Wealth

When you rent, your monthly payment helps build your landlord’s equity. When you own, it builds yours.

Every mortgage payment you make is like putting money into a savings account only better. As home values appreciate over time, your equity grows even faster.

Another major advantage? Homeownership helps protect you from inflation.

While rents can rise year after year, a fixed-rate mortgage keeps your housing payment steady and your wealth keeps growing quietly in the background.

You Might Be Wealthier Than You Think

Here’s a look at net worth tiers in the U.S.:

  • Top 1% = $11.6M
  • Top 2% = $2.7M
  • Top 5% = $1.2M
  • Top 10% = $900K
  • Top 50% = $600K

Owning a home is one of the biggest reasons people move up these tiers, because equity adds up quickly over time.

Real-World Impact

Imagine this: you buy a home for $350,000.

Over the years, as you pay down your mortgage and your home appreciates, that equity can grow into hundreds of thousands of dollars.

That money can help you:

  • Fund college
  • Boost your retirement savings
  • Purchase your next home

Meanwhile, renters often face rising costs and have little to show for years of payments.

It’s Not Just a House – It’s a Wealth Plan

Buying a home isn’t just about having a place to live. It’s about creating a foundation for your financial future.

Even small steps, like getting preapproved or exploring your options, can move you closer to that goal.

If you’ve been wondering whether now’s the right time to buy, remember this:
Homeownership isn’t just a milestone. It’s a strategy for building wealth and long-term security.

Lynn Marie Oates
Mortgage Loan Officer NMLS #1495433
(248) 875-1029
lynnoates@goforwardmortgage.com

As an experienced Mortgage Loan Officer, Lynn Marie Oates knows how overwhelming securing a mortgage can be and is committed to guiding you every step of the way. With a personalized approach, she provides comprehensive support and goes the extra mile to help you present your strongest offer on your dream home. Lynn’s passion is to help you achieve your homeownership goals!

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