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# A Key To Building Wealth Is Homeownership
- URL: https://dimerorealtygroup.com/a-key-to-building-wealth-is-homeownership/
- Published: 2022-03-28T13:16:48.000Z
- Updated: 2026-08-20T10:46:20.000Z
- Author: Dimero Realty Group
- Tags: Real Estate, #yarydiaz, #wordpress, #Import 2026-08-19 08:50

The link between financial security and homeownership is especially important today as [inflation](https://www.simplifyingthemarket.com/2022/01/11/why-inflation-shouldnt-stop-you-from-buying-a-home-in-2022/?a=466898-080e3e27bd6b6eaeaafdd339d1935ef7&ref=dimerorealtygroup.com "inflation") rises. But many people may not realize just how much owning a home contributes to your overall [net worth](https://www.simplifyingthemarket.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/?a=466898-080e3e27bd6b6eaeaafdd339d1935ef7&ref=dimerorealtygroup.com "net worth"). As Leslie Rouda Smith, President of the *National Association of Realtors* (NAR), [says](https://www.nar.realtor/newsroom/middle-income-households-gain-2-1-trillion-in-housing-wealth-in-a-decade?ref=dimerorealtygroup.com "says"):

> *“Homeownership is rewarding in so many ways and can serve as a vital component in achieving financial stability.”*

Here are just a few reasons why, if you’re looking to increase your financial stability, homeownership is a worthwhile goal.

## **Owning a Home Is a Building Block for Financial Success**

A recent NAR [report](https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-report-02-23-2022%5F0.pdf?ref=dimerorealtygroup.com "report") details several homeownership trends and statistics, including the difference in net worth between homeowners and [renters](https://www.simplifyingthemarket.com/2022/02/25/the-difference-between-renting-and-owning-infographic/?a=466898-080e3e27bd6b6eaeaafdd339d1935ef7&ref=dimerorealtygroup.com "renters"). It finds:

*“. . . the net worth of a homeowner was about *$300,000 while that of a renter’s was $8,000 in 2021*.”*

**To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter** *(see visual below):*

[![A Key To Building Wealth Is Homeownership | MyKCM](https://files.mykcm.com/2022/03/24150344/20220328-MEM-Eng.png)](https://files.mykcm.com/2022/03/24150344/20220328-MEM-Eng.png?ref=dimerorealtygroup.com)

The results from this report show that owning a home is a key piece to the puzzle when building your overall net worth.

## **Equity Gains Can Substantially Boost a Homeowner’s Net Worth**

The net worth gap between owners and renters exists in large part because homeowners build [equity](https://www.simplifyingthemarket.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/?a=466898-080e3e27bd6b6eaeaafdd339d1935ef7&ref=dimerorealtygroup.com "equity"). As a homeowner, your equity grows as your home [appreciates](https://www.simplifyingthemarket.com/2022/03/03/are-home-prices-continuing-to-rise/?a=466898-080e3e27bd6b6eaeaafdd339d1935ef7&ref=dimerorealtygroup.com "appreciates") in value and you make your mortgage payments each month.

In other words, when you own your home, you have the benefit of your mortgage payment acting as a contribution to a forced savings account. And when you sell, any equity you’ve built up comes back to you. **As a** [**renter**](https://www.simplifyingthemarket.com/2022/01/31/owning-is-more-affordable-than-renting-in-the-majority-of-the-country/?a=466898-080e3e27bd6b6eaeaafdd339d1935ef7&ref=dimerorealtygroup.com "renter")**, you’ll never see a return on the money you pay out in rent every month.**

To sum it up, NAR says it [simply](https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-report-02-23-2022%5F0.pdf?ref=dimerorealtygroup.com "simply"):

> ***“Homeownership has always been an important way to build wealth.”***

## **Bottom Line**

The gap between a homeowner’s net worth and a renter’s shows how truly foundational homeownership is to wealth-building. If you’re ready to start on your journey to homeownership, let’s connect today.