Market Connection: November 2023 Market Outlook and Report

Pam Dela Cruz • November 10, 2023

If you’re weighing your options to decide whether it makes more sense to rent or buy a home today, here’s one key data point that could help you feel more confident in making your decision. Every three years, the Federal Reserve Board releases the Survey of Consumer Finances (SCF). That report covers the difference in net worth for both homeowners and renters. Spoiler alert: the gap between the two is significant.


The average homeowner’s net worth is almost 40X greater than a renter’s. And here’s the data to prove it (see graph below):



The Big Reason Homeowner Net Worth Is So High

In the previous version of that report, the net worth of the average homeowner was roughly $255,000 and that of the average renter was $6,300. But in the release that just came out this year, the gap widened as homeowner net worth climbed dramatically. As the Survey of Consumer Finances (SCF) report says:

One of the biggest reasons homeowner net worth skyrocketed is home equity.

Over the last few years, known as the ‘unicorn’ years for housing, home prices went through the roof. That’s because there weren’t enough homes for sale, and there was a big influx of buyers rushing to buy them and take advantage of the then record-low mortgage rates. That imbalance of supply and demand pushed prices higher and higher. As a result, most homeowners who had a home during that time saw their equity grow a lot.


If you’re still in the middle of making your decision on whether to rent or buy, you may wonder if you missed the boat on the big net worth boost. But here’s what you need to realize. As a recent article in The Ascent explains:

Bottom Line

If you’re on the fence about whether to rent or buy a home, remember that homeownership can give your net worth a big boost over time. If you want to learn more about this or the many other benefits of owning a home, connect with a local real estate agent.


MY TAKE

Caroline's take on the latest market trends

Owning a home has many benefits, but one of the greatest is a reliable safe harbor investment to build wealth. Over the last few years, we have seen enormous growth in the value of homes, and with that, increases in wealth for home owners.


We help our clients to understand the best way to build wealth in real estate for their financial situation.


Would you like to know all the options?


We are always here to help you select the best strategy for you.


Market Report November 2023

Here's the latest November 2023 Market Update showing year-over-year data. The data includes all Single-family homes and condos & Townhomes in the California Area sourced from MLS Listings for the period from October 2022 thru October 2023. This may include preliminary data and may vary from the time this data was gathered. All data is deemed reliable but not guaranteed. Content from this article is courtesy of Keeping Current Matters.

FOR NEWS INQUIRIES


Kyle Henry

Director of Marketing


Kyle.H@CarolineHuo.com

650.727.1308

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