15th Dec, 2010

Net Worth: Home Owners vs. Renters of Fredericksburg TX and Hill Country Real Estate

For those who are considering buying Fredericksburg TX real estate or Texas Hill Country homes, a study conducted by the Federal Reserve is of significant interest.  The Federal Reserve’s Study of Consumer Finances, conducted once every 3 years, provides a snapshot of family income and net worth along with basic demographic information and some details on where families invest the net worth they have accumulated.

The most compelling figure in this survey details the difference in net worth of owners vs. renters of local Fredericksburg and Hill Country TX real estate as well as state and national homeowners. In the past 12 years, the net worth of the typical homeowner has ranged between 31 to 46 times that of the net worth of the typical renter.

The most recent of these surveys, completed in 2007, provides the detail of this important measure just prior to the impact of the tumbling equities market and home price declines.  At the time of the study, median homeowners had well over $200,000 in net worth vs. the median renter’s net worth of $5,000.  The average value of an owner’s home in 2007 was approximately $200,000.

The National Association of Realtors has estimated the impact for homeowner and renter households of the decline in home prices and the performance of the stock market.  Based on aggregate data, this study suggests that through mid-2010, the net worth of homeowners still exceeds that of renters by 41 times.

Is the Realtor estimate accurate?  For the first time ever, the Federal Reserve has now surveyed again the same participants as were in the 2007 national study.  The results should be very interesting as to how the stock market and real estate prices have affected the net worth of these particular families.  These results are expected to be released in the next few months.  Stay tuned for more information.

If you wish to have expert guidance in becoming an owner of Fredericksburg TX Hill Country real estate, or wish to explain your property holdings and net worth, please contact Dale E. Cook, MBA, Broker of SAGE-Premium Texas Real Estate at (830) 992-0056 or view our website at www.texashomesandinvestmentproperty.com.

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