A Look at the Rising Wealth Gap According to the latest data from the National Association of Realtors®, rents are on the rise, increasing by 5.3% according to government CPI data. When comparing the wealth of renters and homeowners, the gap continues to widen. In 2019, the median net worth for renters was $7,300, while homeowners had a median net worth of $295,500. Fast forward to 2022, and renters’ median net worth has risen to $10,400, while homeowners’ median net worth has surged to $396,200. Looking ahead to 2024, renters are projected to have a median net worth of $10,000, while homeowners are expected to reach $415,000.
Despite expectations for calmer rent growth and potential interest rate cuts by the Fed, concerns about the budget deficit could limit future pivots, potentially leading to accelerated rent growth in the next 2-3 years. It’s essential for renters and potential homebuyers to stay informed about these trends and consider their long-term financial goals.
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
