57Brave
Well-known member
Locked out of Wealth
Homeownership has been the driving force for wealth creation in America over the past 60 years. It offers several advantages over renting: mortgages payments can essentially be locked in for 30 years, while rents will rise steadily over that time; the mortgage interest deduction gives families a significant tax break each year; and home values have risen faster than inflation. In addition, a home is an asset that is easily passed from one generation to the next.
These benefits compound and grow with time. The result is that today’s white families in America have an average of $139,300 in wealth, compared to $12,780 for the average black family. This disparity reflects a similar wealth gap between homeowners and renters. The Federal Reserve studies this and found in 2018 the average homeowner had $231,400 in wealth versus $5,200 for the average renter (which is actually down from $5,500 in 2013).
https://www.tchabitat.org/blog/race-and-housing-series-the-gi-bill
Homeownership has been the driving force for wealth creation in America over the past 60 years. It offers several advantages over renting: mortgages payments can essentially be locked in for 30 years, while rents will rise steadily over that time; the mortgage interest deduction gives families a significant tax break each year; and home values have risen faster than inflation. In addition, a home is an asset that is easily passed from one generation to the next.
These benefits compound and grow with time. The result is that today’s white families in America have an average of $139,300 in wealth, compared to $12,780 for the average black family. This disparity reflects a similar wealth gap between homeowners and renters. The Federal Reserve studies this and found in 2018 the average homeowner had $231,400 in wealth versus $5,200 for the average renter (which is actually down from $5,500 in 2013).
https://www.tchabitat.org/blog/race-and-housing-series-the-gi-bill