--- title: Typical Homeowners Are Now Nearly 40 Times Wealthier Than Renters description: Homes are a critical wealth-building tool, but they're not the only driver of the gap between homeowners and renters, a new study finds. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter at Money who frequently covers news stories about housing topics including home buying, mortgage rates and homeowners insurance. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 597 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Kaitlin Mulhere role: Editor url: https://money.com/author/kaitlin-mulhere/ bio: Kaitlin Mulhere is an editor at Money.com. Since joining in 2015, she’s written and edited about a variety of personal finance topics, including banks, credit, student debt, saving strategies and more. education: University of Florida at_money_since: 2015 articles: 217 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Retirement - Shopping - Taxes social: - https://twitter.com/KMulhere - https://www.linkedin.com/in/kaitlin-mulhere-64503048/ published: '2024-12-13T14:00:57.000Z' section: Housing tags: - News word_count: 455 canonical: https://money.com/homeowners-vs-renters-wealth-gap/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Houses on stacks of coins](https://img.money.com/2024/12/News-Homeowners-Net-Worth-Renters.jpg) The wealth gap between the country's renters and homeowners is soaring: Homeowners' median net worth is about $400,000, compared to just $10,400 for renters. That's according to a recent report from the [Aspen Institute](https://www.aspeninstitute.org/news/aspen-institute-financial-security-program-report-identifies-stark-wealth-gap-between-renters-and-homeowners/), which explores the deep wealth gap that divides renters and owners and the financial challenges that renter households often face without home equity. Buying a home is often the primary wealth-building mechanism for American households. Naturally, owners who have home equity are wealthier on average than renters. And at a median age of 57, homeowners are also typically older than renters (who have a median age 42), meaning they've had more time to build up their wealth. But it's not just their properties that put homeowners ahead of renters financially: The Aspen Institute found that homeowners are also better off when comparing other components of net worth, like investments. Median home equity is about $200,000 — only accounting for about half of homeowners' median net worth, according to the report. Beyond their homes, a strong majority of homeowners (78%) own assets like stocks that can appreciate, according to the report. Meanwhile, less than half of renters own appreciating assets. ## Renters have 3% the wealth of homeowners Because building home equity typically plays a critical role in wealth creation, renters may feel they don't have a lot of options to plan for the future and build wealth for retirement. For those who will rent indefinitely, experts says it's even more important to invest in assets like stocks and bonds and save with retirement accounts. The report highlights the "great need and opportunity we have in this country to strengthen alternative on-ramps to wealth and ownership for millions of renters in the U.S.," according to the release. The researchers propose rental assistance, policies that would promote saving in retirement accounts and down payment assistance for first-time buyers. The report notes that government programs helped renters gain wealth during the pandemic. Between 2019 and 2022, renters' median net worth, which takes into account debt, increased 43% percent from $7,300 to $10,400. That was "partly driven by temporary pandemic-era income supports that allowed renters to pay down debt and invest in other asset types, such as stocks and business equity." But with only 3% of the wealth of homeowners, renters still have a lot of ground to make up. Pandemic supports are now gone and high home values mean rents are eating up significant amounts of household budgets. And it's hard for young people to become [first-time homebuyers](https://money.com/first-time-homebuyer-age-record-high/) with how home prices and [mortgages rates](https://money.com/current-mortgage-rates/) are right now. ## Buy your new home with more convenience and less hassle ### A Mortgage Expert at Rocket Mortgage (NMLS #3030) can lend you a hand for a smoother process. Your dream home is possible. Click below to make it happen. [View Rates](https://money.com/pr/u918d32af718?ap_referrer=%2Fhomeowners-vs-renters-wealth-gap%2F) ![](https://s3.consumersadvocate.org/prd/image/image/26681/medium_57f09f10-efb8-487d-a73e-5f7d605144eb.png) Imagine finally owning your dream home — Rocket Mortgage (NMLS #3030) can help! [View Rates](https://money.com/pr/t39f99e0e0ab?ap_referrer=%2Fhomeowners-vs-renters-wealth-gap%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/homeowners-vs-renters-wealth-gap/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Homeowners", "item": "https://money.com/homeowners/" }, { "@type": "ListItem", "position": 4, "name": "Typical Homeowners Are Now Nearly 40 Times Wealthier Than Renters" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/homeowners-vs-renters-wealth-gap/#webpage", "url": "https://money.com/homeowners-vs-renters-wealth-gap/", "name": "Typical Homeowners Are Now Nearly 40 Times Wealthier Than Renters", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2024-12-13T14:00:57.000Z", "mainEntity": { "@id": "https://money.com/homeowners-vs-renters-wealth-gap/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/homeowners-vs-renters-wealth-gap/#breadcrumb" } }, { "@type": "NewsArticle", "headline": "Typical Homeowners Are Now Nearly 40 Times Wealthier Than Renters", "articleSection": "Housing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2024/12/News-Homeowners-Net-Worth-Renters.jpg", "width": 2880, "height": 1920, "caption": "News-Homeowners-Net-Worth-Renters" } ], "author": [ { "@type": "Person", "name": "Pete Grieve", "url": "https://money.com/author/pete-grieve/", "@id": "https://money.com/author/pete-grieve/#author", "description": "Pete Grieve is a personal finance reporter at Money who frequently covers news stories about housing topics including home buying, mortgage rates and homeowners insurance.", "image": "https://img.money.com/2023/02/peter.png?w=350&h=430&crop=1", "email": "peter.grieve@money.com", "jobTitle": "Lead News Reporter", "alumniOf": "University of Chicago, BA Political Science", "sameAs": [ "https://twitter.com/pete_grieve", "https://linkedin.com/in/pete-grieve-b5aa02138", "https://www.facebook.com/petegrieve4" ], "worksFor": { "@id": "https://money.com/#organization" } } ], "publisher": "https://money.com/#organization", "datePublished": "2024-12-13T14:00:57.000Z", "description": "Homes are a critical wealth-building tool, but they're not the only driver of the gap between homeowners and renters, a new study finds.", "abstract": "Homes are a critical wealth-building tool, but they're not the only driver of the gap between homeowners and renters, a new study finds.", "@id": "https://money.com/homeowners-vs-renters-wealth-gap/", "inLanguage": "en-US", "editor": [ { "@type": "Person", "name": "Kaitlin Mulhere", "url": "https://money.com/author/kaitlin-mulhere/", "@id": "https://money.com/author/kaitlin-mulhere/#author", "description": "Kaitlin Mulhere is an editor at Money.com. 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