Homeowners’ Wealth Today Now 40× That of Renters

New studies are showing that over the past decade, homeowners have built significantly more wealth than renters—on average, about 40 times more. This finding underscores the powerful financial advantages of owning property versus renting.

Middle-income homeowners nationwide have seen property appreciation of nearly 70% since 2012, translating to roughly $122,000 in wealth gains. Even lower-income homeowners built close to $100,000 in equity during the same period, while higher-income households gained even more—over $150,000. In addition, mortgage balances have declined by about 20%, meaning homeowners are not only seeing their assets appreciate but are carrying less debt at the same time.

Yet the story isn’t just national—it’s particularly striking here in Los Angeles. Local homeowners have experienced some of the strongest equity growth in the country. Over the past 9 years, a typical LA homeowner gained nearly $400,000 in equity, more than double the national average. In just the past 3 years, many owners added around $120,000 in wealth purely from appreciation. Neighborhoods like West Adams have seen dramatic gains—values reportedly more than doubling—while other established areas have still enjoyed steady, healthy growth. Even with the market cooling in recent quarters, LA homeowners continue to hold six-figure equity cushions that renters simply cannot match.

My Takeaway

Homeownership is not just about shelter—it’s about building wealth. The NAR study shows that across the U.S., and especially here in Los Angeles, owning property creates financial advantages renters rarely capture. Month after month, mortgage payments act like a built-in savings plan, growing equity that compounds over years.

For me, the takeaway is twofold: first, owning a home in LA has historically been a life-changing financial decision, with equity growth in the hundreds of thousands of dollars. Second, as real estate professionals, our role is bigger than transactions—we’re in the business of helping people unlock opportunity, security, and legacy. The more families we can help make the leap from renting to owning, the more we close the wealth gap and strengthen our communities.