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Over the last six years, homeownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth.

Every three years the Federal Reserve conducts a Survey of Consumer Finance in which they collect data across all economic and social groups.

Some of the findings revealed in their report:

• The average American family has a net worth of $81,200
• Of that net worth, 61.4% ($49,856) of it is in home equity
• A homeowner’s net worth is over 36 times greater than that of a renter.
• The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400

Bottom Line

There are many reasons why owning a home makes sense, the Fed study shows that owning is still a great way for families to build wealth in America.

Click here to view the Survey of Consumer Finance