Homeownership is the most common way that individuals and families build wealth in this country, surpassing even retirement savings for four out of five of us.
We talk a lot here at the Center about how homeownership is the most common way that individuals and families build wealth in this country. Because of this, the gap in homeownership between white households and households of color has a long ‘tail’ that makes households of color more likely to be impoverished during retirement than their white counterparts – yet another reason why we must continue to work hard at making progress against this gap.
A 2017 study from the Center for Retirement Research at Boston University gathered real data on this issue, illustrating the true scope of the disadvantage of not owning your own home when you retire. The research found that for households headed by individuals ranging from 65-69 years of age, 80 percent had more equity in their homes than they did in retirement savings. Low- to moderate-income households held an average of $60,000 in home equity compared to $5,000 in retirement savings, while median-income earners held about $105,000 in home equity and about $40,000 in retirement savings.
The fact is, achieving sustainable homeownership helps you and your family today as well as years down the road. If you’d like to explore sustainable homeownership for yourself, a Homeownership Advisor can help. They can offer you unbiased advice based on your unique circumstances and map a route to achieving ownership for yourself. It may take some hard work and temporary sacrificing, but the results are well worth it in the long run.