Monday Market Update: The Widening Wealth Gap

Welcome back to the Bobbi Decker Real Estate Blog! If you have followed our articles for years, then you know that we value real estate as not just a driving lifestyle force, but a wealth-building asset. A recent article from Money magazine verifies that what we’ve always seen in the market continues to be true: homeowners have more wealth than renters. Furthermore, the wealth difference between homeowners and renters is growing. We’ve summarized the main factors below, but we encourage you to read ‘Homeowners Are Now 43 Times Wealthier Than Renters’ in full. 

What The Stats Say 

- In 2025, the net worth of a homeowner is $430,000 on average, while the net worth of a renter is $10,000.

- Since 2019, renters have grown their wealth over by 37% (from $7,300 to $10,000), while homeowners have grown their wealth by 46% (from $295,500 to $430,000). 

- From 2022 to 2025, homeowner wealth has continued to grow (from a net worth of $396,200 to $430,000) while renter wealth has actually shrunk (from $10,400 to $10,000). 

What The Reasons Are 

- The widening wealth gap between homeowners and renters is largely due to the fact that it is one’s income plus the value of your assets that make-up net worth.

- Homeowners have gained substantial equity via the home price appreciation that has dominated the market for the last 5 years. 

- On the flip side, renters have faced larger rents, so even if they continue to earn more – they are saving less and spending more on housing. 

- It is also notable that home price appreciation is far outpacing wage growth. While renters and homeowners can both earn more money, only the latter can benefit from home price increases to build equity. 

Read More From NAR® HERE 

The bottom line is that home can be a great source of comfort and a wise investment! While getting into the market is far from easy… it is very often worth it!

Cheers,

Bobbi 

Bobbi Decker
DRE#00607999

Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/