Owning a Home Is a Key Ingredient for Financial Success
“. . . the net worth of a homeowner was about $300,000 while that of a renter’s was $8,000 in 2021.”
Equity Gains Can Substantially Boost a Homeowner’s Net Worth
“Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you’re building equity in your home . . . When you rent, you aren’t investing in your financial future the same way you are when you’re paying off a mortgage.”
“Building home equity can help you increase your wealth over time, . . . A home is one of the only assets that have the potential to appreciate in value as you pay it down.”
Rent Prices Are Rising Everywhere, Including Right Here in Northern Michigan
In order to show how things stack up locally, we did a deep dive into the last 8 years of rental history averages in Grand Traverse County, and the numbers might surprise you. See our graph below:
As the graph above clearly shows, the median rent for a 3 bedroom in Grand Traverse County jumped from $2,120 per month in 2021, to $2,237 per month this year, and rent prices in our area have nearly doubled since 2014.
In contrast, a 3 bedroom home in GT County that sold in August 2021 for $346,500 saw a 15.4% gain just a year later, with an August 2022 sold price of $400,000. That’s a gain of $53,500 in just 12 months, and a median sold price that’s doubled with a 202% gain since 2014.