Here's the Average Net Worth of Homeowners vs. Renters - How Do You Compare?

Homeownership and renting come with very different wealth numbers. According to the Federal Reserve's most recent Survey of Consumer Finances, homeowners had a median net worth of $396,200. Renters and other nonhomeowners had a median net worth of just $10,400. That makes the typical homeowner nearly 40 times wealthier than the typical renter.

The gap matters now because home prices remain near record levels, making ownership both a powerful wealth builder and an increasingly difficult milestone to reach. Here's what's driving the divide and what it means if you're trying to grow your wealth.

The typical homeowner is worth nearly $400,000

The Federal Reserve defines net worth as everything a household owns minus everything it owes. In 2022, homeowners had a median net worth of $396,200, up 34% from 2019. Renters and other nonhomeowners had a median of $10,400, despite experiencing a larger 43% increase during the same period.

In dollar terms, the gap between the two groups was approximately $385,800.

Why the median matters more than the average

The most important figures to look at are the medians, not the averages.

The median is the household in the middle of the data. If you took a random family out of the statistics, they'd be more likely to fall close to the median, not the average. That's because the average is inflated by very wealthy households with millions of dollars.

The mean, or mathematical average, was much higher than the median because of this inflation: roughly $1.53 million for homeowners and $154,900 for renters. Those figures are less useful for someone wondering how a typical household compares.

Home equity explains most of this gap

For homeowners, the house itself does most of the heavy lifting. The Fed found that median net housing wealth, meaning a home's value minus mortgages and other home-secured debt, reached $201,000 in 2022.

That was about half of the median homeowner's total net worth. In other words, remove home equity from the equation, and the homeowner-renter wealth gap becomes much smaller, though it doesn't disappear completely.

A mortgage can act like forced savings

A portion of each mortgage payment reduces the amount owed on the home, gradually converting monthly payments into equity. Homeowners may also benefit when property values rise, although appreciation isn't guaranteed and can vary considerably by location.

Rent payments provide something essential: a place to live. However, they don't give tenants an ownership stake in the property. That difference can add up over several decades.

Homeowners tend to own other assets

Housing isn't the whole story. Homeowners are also more likely to hold investments outside their primary residence.

An Aspen Institute analysis of the Fed's data found that 78.2% of homeowners owned at least one potentially appreciating asset other than their home in 2022. That included retirement accounts, stocks, business equity, other real estate, and similar investments. Only 48.2% of renters held one of those assets.

Many renters have little room to save

Saving a down payment is difficult when there's barely anything left at the end of the month. The Aspen Institute found that fewer than half of renters had income remaining after paying their monthly expenses, even during the 2020 peak in pandemic-era financial support.

Housing takes a particularly large bite. About half of renters spent at least 30% of their income on housing in 2022, leaving less available for emergency savings, investments, or a future home purchase.

High home prices make catching up harder

The wealth gap can reinforce itself. Existing homeowners benefit when property values rise, while prospective buyers face a larger down payment and potentially higher monthly costs.

That challenge hasn't gone away. The Federal Housing Finance Agency reported that home prices rose another 1.7% between the first quarters of 2025 and 2026. Someone starting without home equity may have to save while the target price keeps moving.

Renting isn't automatically a financial mistake

Renting can make sense for someone who may move soon, lives in an expensive market, or doesn't want to take on the responsibility for repairs, property taxes, and insurance. Buying with little cash reserves or stretching a budget to its limit can create a different set of financial problems.

Home values can also decline. Even when they rise, selling costs and maintenance expenses may reduce the owner's eventual return.

Renters can build wealth without buying

The bigger lesson isn't that everyone must purchase a house. It's that households generally need to own appreciating assets to build substantial wealth.

A renter could automate contributions to a workplace retirement plan, open an IRA, or invest regularly through a taxable brokerage account. That approach requires more deliberate effort because rent doesn't include a built-in investment component, but it still gives money the chance to compound over time.

Bottom line

Homeowners had nearly 40 times the median net worth of renters in 2022, largely because they had built substantial home equity and were more likely to own other appreciating assets. Still, renting isn't necessarily a financial setback if you consistently invest some of the money you might otherwise spend on ownership.

If buying is your goal, compare the full cost of ownership rather than focusing only on the mortgage payment. Property taxes, insurance, maintenance, and unexpected repairs can add considerably to the monthly cost, so keeping cash reserves is one of the simplest ways to protect your home budget.

You May Also Like

23 Ways To Get Money Without Getting A Second Job

By FinanceBuzz Editors

How To Save Money on Car Insurance: 12 Ways to Lower Rates

By Elyssa Kirkham

10 Things Seniors Born Between 1941-1969 Could Take Advantage Of

By FinanceBuzz Editors

19 Dumbest Things Smart People Waste Money On

By Team FBZ

7 Moves If You Want to Stop Living Paycheck to Paycheck

By FinanceBuzz Editors

7 Clever Ways to Crush Your Debt

By FinanceBuzz Editors

Up To 5% Cash Back

Discover it^® Cash Back

Benefits Card Details

• Intro APR on purchases and balance transfers
• $0 annual fee
• Apply Now

• Get a 0% intro APR for 15 months on purchases and balance transfers; balance transfer fee applies. Then 17.49% to 26.49% Standard Variable Purchase APR applies, based on credit worthiness
• INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300
• Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases
• Redeem cash back for any amount. No annual fee
• Terms and conditions apply

4.7

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Apply Now

on Issuer's secure website

Rates and fees

Read Card Review

Intro Offer

INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300

Annual Fee

$0

+ -

Why we like it

• The Discover it^® Cash Back is ideal for anyone who loves flexible rewards options.

• Cardholders can redeem their cash back for any amount.

• Earn 5% cash back on rotating bonus categories up to the quarterly maximum when you activate, along with 1% cash back on all purchases. Categories may include places like gas stations, grocery stores, restaurants, and more.

• Apply Now

---

Subscribe Today

Learn how to make an extra $200

Get vetted side hustles and proven ways to earn extra cash sent to your inbox.

or

Subscribe Now →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms