Homeowners Aged 65+ Have 48x More Net Worth Than Renters

Homeowners Aged 65+ Have 48x More Net Worth Than Renters | Simplifying The Market

Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. Their latest survey data covers responses from 2013-2016.

The study revealed that the median net worth of a homeowner 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.

There are many who see that statistic and point toward how broad the range of respondents are for the Federal Reserve survey. Their study includes all economic and social groups and also includes all age groups. The argument is that older respondents have a higher likelihood of being homeowners, while the homeownership rate among younger survey takers is much lower.

Recently, the Joint Center for Housing Studies at Harvard University focused on homeowners and renters over the age of 65. Their study revealed that the difference in net worth between homeowners and renters at this age group was actually 47.5 times greater!

Homeowners Aged 65+ Have 48x More Net Worth Than Renters | Simplifying The Market

Homeowners over the age of 65 are much more financially prepared for retirement and often own their homes outright if they were fortunate enough to purchase their homes before the age of 36. Their 30 years of mortgage payments have paid off as they gained equity through their monthly payments and as home values appreciated.

It is no surprise that lifelong-renters have had a hard time accruing net worth as the latest Census report shows that the Median Asking Rent has been climbing consistently over the last 30 years.

Homeowners Aged 65+ Have 48x More Net Worth Than Renters | Simplifying The Market

Bottom Line

As a homeowner you put your monthly mortgage payment to work for you, building your net worth with every payment.

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Essex Park in Belleville NJ, Just Listed – Grandville Unit

I just listed this gorgeous Grandville Unit at Essex Park in Belleville New Jersey

Essex Park in Belleville New Jersey

Official Listing: 38 Cathedral Ave in Nutley NJ

🏠Gorgeous 4 Bedroom Colonial Home Located in the Spring Garden section of Nutley NJ

🚉 Easy Commute to NYC

👨‍👩‍👧‍👦 In-Law Suite For Extended Family

This home has everything a home owner could want, granite counters, large open floor plan, a master suite with Jacuzzi tub that would be fabulous

(CLICK TO SEE MORE)

38 CATHEDRAL AVENUE

Just Sold in Nutley – 179 Centre St.

179 Centre St, Nutley, NJ

$ Click for current price
3 BEDROOMS | 1 (1 full ) BATHROOMS |

THIS CLASSIC 3 BEDROOM COLONIAL LOCATED IN THE HEART OF NUTLEY NEW JERSEY IS A GREAT HOME FOR SOMEONE THAT DESIRES MORE SPACE AND LOW TAXES, BUILT IN POOL AND SO MUCH MORE TO OFFER.

BUILT DURING THE EARLY PART OF THE 20TH CENTURY THIS HOME IN NUTLEY WAS BUILT BY MR FREEMAN HIMSELF (THE NAME ON THE STREET SIGN) IT HAS A LARGE CORNER LOT WITH ALL THE ORIGINAL WOOD IN TACT AND OPEN AIRY ROOMS, DECK, JACUZZI AND SO MUCH MORE.

THE TAXES ARE LOW ON THIS SIZE HOME UNDER 10K PER YEAR AS WELL.


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653 Franklin Ave.

Nutley NJ 07110

Baby Boomers Are On the Move

Baby Boomers Are On the Move | Simplifying The Market

According to a Merrill Lynch study“an estimated 4.2 million retirees moved into a new home last year alone.” Two-thirds of retirees say that they are likely to move at least once during retirement.

As one participant in the study stated:

“In retirement, you have the chance to live anywhere you want. Or you can just stay where you are. There hasn’t been another time in life when we’ve had that kind of freedom.”

The top reason to relocate cited was “wanting to be closer to family” at 29%, a close second was “wanting to reduce home expenses” at 26%.

A recent Freddie Mac study found similar results, as “nearly 20 percent of Boomers said they would move closer to their grandchildren/children compared to 13 percent who said they would move to a warmer climate.”

Not Every Baby Boomer Downsizes

There is a common misconception that as retirees find themselves with fewer children at home, they will instantly desire a smaller home to maintain. While that may be the case for half of those surveyed, the study found that three in ten decide to actually upsize to a larger home.

Some choose to buy a home in a desirable destination with extra space for large family vacations, reunions, extended visits, or to allow other family members to move in with them. According to Merrill Lynch:

“Retirees often find their homes become places for family to come together and reconnect, particularly during holidays or summer vacations.”

Bottom Line

If your housing needs have changed, or are about to change, let’s get together to discuss your next steps.

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