New Study Homeownership Creates Family Wealth

Dated: 04/10/2015

Views: 304

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

Questions And Answers Regarding Escrow Accounts

Questions and Answers Regarding Escrow Accounts Whether you are purchasing a new home or you are considering applying to refinance your home, chances are the lender will require an escrow account.

Read More

Whats Ahead For Mortgage Rates This Week February 20th 2018

What’s Ahead For Mortgage Rates This Week – February 20th, 2018 Last week’s weeks economic releases included readings on the NAHB Housing Market Index, housing starts and building permits

Read More

Why Should One Consider Refinancing Their Mortgage Now Why Should One Consider Refinancing Their Mor

Why Should One Consider Refinancing Their Mortgage Now? Refinancing a mortgage is a golden opportunity to lock in today’s low interest rate for the next 15 or 30 years. While interest rates now

Read More

What You Need To Know About Mortgage Insurance

What You Need to Know About Mortgage Insurance Homeowners insurance and title insurance may not be the only kinds of insurance you need when you buy a home. Many buyers also have to purchase

Read More