According to the Urban Land Institute, there are currently 121 million households in the United States, however it is anticipated that this will increase to almost 126 million by 2017 thanks to a projected growth of almost 4%. What does this mean for you as a homeowner or as a renter?
First, if you are a renter we’d like to caution you that with this increase in households throughout the country, it creates a demand for housing that just isn’t there. This causes rental prices to dramatically increase, whether the average renter can afford it or not.
If you’re a homeowner, the good news is that your net worth is over 30 times greater than that of a renter. The Federal Reserve put out the graphic below showing people how much of a difference there is in net worth for families that own a home in comparison to families that rent. If you’re a renter, perhaps now might be the time to consider purchasing a home.