Most Replayed Moment: Is Renting Keeping You Poor? What's The Actual Cost Of Home Ownership? David Bach

Yeah, I mean, I, I couldn't feel more differently.

When we look at where is wealth created in the United States and also abroad, it's in two places.

It's in home equity, and it's in the stock market.

So when you look at housing, and you take someone who owns a, a home, and we'll talk about it, I know it's hard to buy homes right now.

Uh, but when you look at people who own a home versus people who rent, homeowners in America...

Follow this for one second.

Homeowners in America are worth forty times more than renters.

So the average homeowner in America today is worth over four hundred thousand dollars.

But this doesn't establish causation, i.e., that doesn't mean that buying a home make, made them rich, right?

It actually does, and I'm gonna go through that here.

So the average renter is worth ten thousand dollars, right? So why, why does buying a home build wealth? And how much wealth in the United States is now in home equity? Wall Street Journal just ran an article on this, came out two days ago.

There's thirty-four trillion dollars now in home equity in America.

This number has gone up ninety percent since before COVID.

The other money is in retirement accounts, which is sixty, seventy percent in stocks.

There's forty-five trillion dollars now in retirement accounts.

So those two things alone equal eighty trillion dollars, right? Like, when you wanna go like, "Where are the breadcrumbs? Where is wealth being created?" It's right in front of us.

Now, the problem that we have in the United States, but also, look, we're here in London right now, the problem we have in so many cities is that real estate keeps going higher and higher and higher, and people's incomes are not keeping pace with the cost of buying a home.

So when someone comes on a show like this and says, "Look, you don't have to buy a home.

It costs more to have a house than rent." You, you know, I, I watched one of the shows.

I won't say who it was.

It doesn't matter.

They all say the same thing.

"Don't buy a house.

You'll be trapped.

You'll have to pay y- you'll have to pay real estate taxes, and you'll have to pay insurance, and things break." They go through all these expenses.