New Study Homeownership Creates Family Wealth

Dated: 04/10/2015

Views: 309

New Study: Homeownership Creates Family Wealth | Keeping Current Matters

Matthew Rognlie, from the Department of Economics at MIT, recently released a paper:Deciphering the Fall and Rise in the Net Capital Share. One of the major findings of the report is that homeownership is and has been for the last fifty years a major component to family wealth.

An article on the study in The Economist notes one of the findings of the study:

“The return on non-housing wealth, in fact, has been remarkably stable since 1970. Instead, surging house prices are almost entirely responsible for growing returns on capital.”

This came as no surprise to us as the Federal Reserve previously reported that the net worth of families that own their own home is 36 times greater than that of families that rent.

Bottom Line

HousingWire’s Senior Financial Reporter, Trey Garrison, summed it up well in hisreporting on Rognlie’s study:

“Homeownership has consistently created generational wealth more reliably, and more ‘democratically’, than any other asset class. And it does so in a manner entirely ancillary to its primary purpose of giving you a place to lay your head and keep your stuff.”

Want to Advertise on this Site?

Latest Blog Posts

Smart Technology Or Home Automation Whats The Difference

Smart Technology or Home Automation: What’s the Difference? Is it worth it to add smart appliances or automated features if you’re selling a home? Just how much connectivity do buyers want? And

Read More

What You Need To Know About Your Home Appraisal And Your Mortgage

When buying a home, there are certain steps a buyer should go through before the home sale is official. First the buyer makes the offer, then the offer is accepted.Next the buyer schedules the

Read More

Green Technology To Reduce Your Homes Carbon Footprint

When you are a homeowner looking to reduce your carbon footprint, there are a number of steps you can take to make your home earth-friendly. From passive solar heating to solar panels, you can

Read More

Thinking About Buying A FixerUpper Know These Top Resources To Make The Most Profit

If your financial situation is limited, yet you’re handy with a hammer and nails, then purchasing a fixer-upper home can be an attractive option. Fixer-uppers typically require a bevy of updates

Read More