Buying a house used to be a financial milestone. Now it's basically a wealth supercharger — and if you ask Realtor.com, that gap has only grown wider.
According to their 2025 analysis — which blends Federal Reserve data with current housing market trends — today's typical homeowner has a net worth of around $430,000, while renters sit closer to $10,000. That's a 43-to-1 difference.
But here's the thing: those estimates are still anchored in the last official dataset from the Federal Reserve's Survey of Consumer Finances, which was conducted in 2022. That report showed the median homeowner's net worth at $396,200, compared to just $10,400 for renters — a 38-to-1 difference at the time.
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The Federal Reserve only runs the SCF every three years, so the 2022 numbers remain the most recent official release. The next full update will arrive in 2026.
Why the Gap Is So Crazy Wide
Two big forces are at play:
1. Home Equity Is a Wealth Multiplier
Homeowners don't just live under a roof — they build equity. Pay a mortgage for a few years and you own a bigger piece of your home's value. When prices go up — as they did strongly in the years before 2022 — that equity grows even faster. Home equity often makes up 50% or more of a household's total net worth.
That's not a small effect. That's a primary driver of household wealth.
2. Renters Can't Tap That Same Engine
Paying rent doesn't build equity. You get a place to live, but no ownership stake, no price appreciation, and no asset to leverage for future borrowing or investment. Month after month, renter dollars help someone else build wealth — not you.
The Trend Isn't New — But It's Getting Sharper
Back in 2019, the homeowner-renter wealth gap was already massive, but less extreme. By 2022, the Fed noted this was the largest three-year jump in median net worth differences in the history of the modern SCF — more than double the next largest increase on record.
That means homeowner wealth didn't just grow — it accelerated, even as broader economic challenges slowed other kinds of saving.
So What Can You Do If You're Renting?
If you can't buy a traditional home right now, that doesn't mean all doors are closed. There are steps someone can realistically take to get positioned on the "wealth side" of this chasm:
- Start Preparing for Homeownership
Save for a down payment, tighten up your credit score, and keep an eye on first‑time buyer programs or community loans that reduce upfront costs. Even a modest down payment can unlock years of equity growth.
- Explore Rent‑to‑Own or Lease‑Purchase Options
In some markets, renters can enter agreements where part of the rent goes toward a future purchase price. It's not right for everyone, and terms vary, but it's one path toward ownership without immediately qualifying for a mortgage.
- Get Your Foot in Real Estate With Less Cash
You don't have to own a whole house to benefit from real estate appreciation or rental income. Platforms like Arrived make it possible to invest in real estate with as little as $100. Backed by investors including Amazon founder Jeff Bezos and others, Arrived lets everyday people buy fractional shares of rental properties and earn passive income from rent and value growth — all while Arrived handles the tenant, maintenance, and property management logistics.
You don't become a homeowner by buying a share, but you do get exposure to the same wealth‑building engine that's helping homeowner net worth climb.
- Use Investment Paths That Build Wealth While You Rent
Stocks, retirement accounts, and even real estate bonds can help grow your financial base while you prepare for homeownership. Diversification matters — don't put all your eggs in one basket.
Not Everyone Buys a Home—But Everyone Should Understand What It Builds
Not everyone can or wants to own a home. For some, the flexibility of renting is non-negotiable. For others, down payments and debt loads just aren't doable right now — and that's okay.
But the Federal Reserve data makes one thing undeniably clear: homeownership is still one of the most powerful levers for building wealth in the U.S. Those who own homes hold net worth that's multiples larger than renters' — and the gap has widened as home prices climbed faster than incomes and savings could keep up.
That doesn't mean renters are doomed. But it does mean that understanding the paths into real estate ownership — traditional and alternative — might be one of the most financially impactful decisions someone can make today.
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