Estimated read time: 4-5 minutes
When it comes to building wealth, owning a home isn't just a dream — it's a game-changer. A 2024 Aspen Institute study reveals that the median net worth of U.S. homeowners is a jaw-dropping $400,000, compared to just $10,400 for renters. That's nearly 40 times the difference and a powerful argument in favor of homeownership.
In fact, middle-income homeowners have seen their properties appreciate by 68% since 2012, accumulating $122,100 in wealth, according to a report from the National Association of Realtors.
The wealth gap: Homeowners vs. renters
The disparity in net worth between homeowners and renters is primarily attributed to home equity. The same Aspen Institute report reveals that median home equity stands at about $200,000, accounting for roughly half of homeowners' median net worth.
Beyond their primary residences, 78% of homeowners own additional appreciating assets, such as stocks or secondary properties, compared to only 48% of renters.
Building wealth through home ownership
- Equity accumulation: With each mortgage payment, homeowners build equity, effectively turning their monthly housing costs into a form of savings. Over time, this equity can be leveraged for loans or realized upon selling the property.
- Appreciation: Historically, real estate values tend to appreciate. As property values increase, so does the homeowner's net worth.
- Stability: Unlike rent, which can fluctuate based on market conditions, fixed-rate mortgages offer predictable monthly payments, allowing for better long-term financial planning.
Challenges facing renters
Renters often face financial hurdles that impede wealth accumulation. The Aspen Institute study notes that only 39% of renter households have income exceeding their expenses, compared to 54% of homeowners. Additionally, renters are more susceptible to rising housing costs, with nearly half spending over 30% of their income on rent and utilities.
While renting may offer short-term flexibility, the long-term financial benefits of homeownership are substantial. From building equity and wealth to providing stability and potential tax advantages, owning a home remains a cornerstone of financial well-being in the United States.
Financial resilience and long-term security
Homeownership also contributes to greater financial resilience. The Aspen Institute report highlights that homeowners are more likely to have emergency savings and access to credit, making them better equipped to handle unexpected expenses or job loss.
Meanwhile, the National Association of Realtors study found that the net gains in home equity since 2012 have not only boosted wealth but also enhanced retirement readiness for many Americans.
With housing costs representing a significant portion of monthly budgets, owning a home with stable payments provides a critical buffer against inflation — something renters are far less insulated from in today's volatile market.
Policy and social implications
The growing wealth gap between renters and homeowners also has broader social and economic implications. According to the Aspen Institute report, the disparity in asset ownership contributes to intergenerational wealth inequality, especially among marginalized communities.
Homeownership is often a family's first major financial asset and its value can be passed down, helping future generations get a head start. Without access to affordable pathways to homeownership, renters are less likely to benefit from this long-term wealth transfer, perpetuating cycles of economic disadvantage.
The case for expanding access to home ownership
Considering these trends, both the Aspen Institute and the National Association of Realtors call for policies aimed at reducing barriers to homeownership — especially for first-time buyers and underserved populations. These include expanding down payment assistance programs, improving credit access and increasing the supply of affordable housing.
As the Realtors study points out, even modest increases in home equity can have life-changing effects for middle-income families, helping them build security, invest in education, or start small businesses. Addressing affordability and access is not just a housing issue — it's an essential strategy for closing the wealth gap.
About the Salt Lake Board of Realtors
The Salt Lake Board of Realtors is the Wasatch Front's voice of real estate and the top source for housing market information. As the largest shareholder of UtahRealEstate.com, one of the leading Multiple Listing Services (MLS) in the United States, the Salt Lake Board of Realtors has promoted homeownership and protected private property rights since 1917. It empowers its members through continuing education, advocacy, and adherence to a professional code of ethics.
About UtahRealEstate.com
Founded in 1994, UtahRealEstate.com is the leading provider of real estate technology in Utah and one of the largest multiple listing services in the United States. The company provides one of the top-ranked real estate websites in the country, serving more than 8 million consumers each year. It also provides multiple listing services to approximately 20,000 real estate professionals, accounting for nearly 97% of all Realtors® in the state of Utah.
