At a local level in Palm Springs, CA, homeowner confidence in the housing remains strong as prices increase. Some variance exists between the price levels and home type.
Particularly in and around Palm Springs 92264 and 92262 zip codes. The variety of luxury and value priced homes, along with the desirable downtown area, makes Palm Springs a busy area in the Coachella Valley.
As you are aware, for most home buyers, purchasing their home is the biggest financial transaction they will ever make. For that reason, there are many benefits, especially financial.
Today, let’s talk about why the Net Worth of Homeowners 44X Greater than Renters.
Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey data, covering 2013-2016 was released two weeks ago.
The study revealed that the 2016 median net worth of homeowners was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).
These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.
Owning a home is a great way to build family wealth
As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.
That is why, for the fourth year in a row, Gallup reported that Americans picked real estate as the best long-term investment. This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26% and then gold, savings accounts/CDs, or bonds.
Greater equity in your home gives you options
If you want to find out how you can use the increased equity in your home to move to a home that better fits your current lifestyle, let’s get together to discuss the process.