New Report Finds Middle-Income Homeowners Gained Over $120K in Wealth
A new report from the National Association of Realtors reveals that middle-income homeowners in the US gained about $122,100 in wealth as their homes appreciated by 68% in the last 10 years. Low-income homeowners accumulated $98,900 in wealth from home price appreciation, while upper-income households saw an increase of roughly $150,800.
For the first time in this report, the NAR also recorded the top cities where Black homeowners accounted for more than 60% of households, and residents gained over $125,000 in wealth in the last decade.
"This analysis shows how homeownership is a catalyst for building wealth for people from all walks of life," said Lawrence Yun, NAR's chief economist. "A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter."
According to NAR President Kenny Parcell, homeownership helps create long-term wealth and financial stability for families and future generations. In areas with the highest homeownership rates for middle-income and low-income households, owners gained $110,000 and $140,000 on average in the last 10 years, respectively.
Homeowners looking to capitalize on this increase in home equity are encouraged to contact their loan officers. Loan officers can assist homeowners with the complex process of refinancing or obtaining a home equity loan, ensuring they get the best possible rates and terms.
Working with a loan officer can also grant homeowners access to various financing options, such as FHA loans, VA loans, and conventional loans. Homeowners can work with their loan officers to evaluate each loan type's pros and cons and find the one that best meets their needs.