Home Ownership Opens Door to Building Wealth for Lower Income Households . .

March 2004
Journal of Financial Planning;Mar2004, Vol. 17 Issue 3, p21
Academic Journal
This article discusses results of a survey by the Consumer Federation of America, which revealed that home ownership is on the rise, especially for lower-income households, and the equity from that home ownership is the main source for building wealth among lower-income and minority homeowners. Based on data from the Federal Reserve Board's Survey of Consumer Finances, the study found the following data: (1) home ownership rose from 64 percent of all households in 1989 to 68 percent in 2001; (2) ownership rose from 33 percent to 44 percent for households in the lowest one-fifth of household income, and from 42 percent to 47 percent for African-Americans; (3) median equity was $70,000; (4) for all households, home equity represented 42 percent of net wealth in 2001; (5) for low-income households, equity represented 80 percent of wealth, and for African-Americans, it represented 52 percent.


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