The US Census Bureau reports that, “Wealth inequality between homeowners and renters is striking: Homeowners’ median net worth is 80 times larger than renters’ median net worth.”
The Bureau contends that the two largest drivers of wealth – equity in a home, and a retirement savings account – are out of reach for renters.
First off, renters’ incomes are generally significantly below those for homeowners. According to Zillow, “The typical home buyer in 2017 earned more than two times the typical renter.”
So, it’s harder for renters to save the thousands of dollars needed for a house down-payment. And when it comes to retirement savings, even if their employer offers the benefit, many renters cannot afford to see one more deduction coming out of their paychecks.
Here are some household wealth highlights as reported by the US Census:
Here’s how all this hits home in the Nutmeg state. According to the 2018 ALICE report. “In 2016, 67 percent of households owned a home. Renting a home has become less affordable as the cost of rentals has continued to rise, while demand for low-cost multi-family housing has outpaced the supply.” So, we may have slightly more homeowners than the national average, but they and their renter counterparts are paying more housing than those in most other states. Please, sir, my we have some more affordable housing?