Inflation has cooled recently but remains significant when viewed cumulatively, with the Consumer Price Index rising over 20% in the past four years. To safeguard against inflation, investing in assets that grow in value, like owning a home, is a smart strategy compared to renting.
The wealth gap between homeowners and renters continues to widen:
● In 2019, homeowners had a net worth 40 times greater than renters ($295,500 vs. $7,300).
● By 2024, this gap increased to 42 times ($415,000 vs. $10,000).
Homeowners have also seen substantial wealth growth, with their average net worth rising by $120,000 from 2019 to 2024. Owning a home not only provides stability but also helps build long-term financial security and hedges against inflation.
Source: Median Net Worth from Federal Reserve Survey of Consumer Finance, NAR