The Wealth Gap — Renters vs. Homeowners

Wealth First Blog #3: The Wealth Gap — Renters vs. Homeowners

Why owning a home remains the #1 builder of wealth for everyday Americans.

You’ll hear all kinds of opinions about the housing market, but the numbers tell the real story:

• The median homeowner has a net worth of around $400,000
• The median renter has a net worth of $10,400

That’s nearly a 40x difference — and it’s not because homeowners earn more. It’s because they own an asset that builds wealth automatically.

This is the heart of the Wealth First Movement:

Helping people stop renting someone else’s wealth plan and start building their own.

I’m Chet Wisinski, and I help buyers across the Carolinas and Southeast use homeownership to create long-term financial stability and generational opportunity.

Why Homeowners Build More Wealth

1. Appreciation — Homes in the Carolinas and Southeast have averaged 3–5% annual growth for decades. A $400,000 home growing at 4% adds:
   • $16,000 in one year
   • $174,000 in ten years
2. Amortization — Rent disappears forever. Mortgage payments build equity. Most new homeowners build $6,000–$8,000 in principal reduction their first year.
3. Leverage — Put 3% down on a $400,000 home and you control the entire asset. Appreciation is earned on the full $400,000, not your down payment.
4.  Stability — Rents have climbed 5–11% in many Carolinas markets. Homeowners lock in a predictable payment and keep more money over time.
5. Tax Advantages — Depending on your situation, you may benefit from deductions and exclusions renters cannot receive.

The Renter Reality

Renters ARE paying the mortgage — just not their own. Each payment builds the landlord’s principal, interest, taxes, insurance, and wealth.

A Simple Charlotte Example

A renter paying $2,000/month spends $72,000 in 3 years and builds $0 wealth.

A homeowner with a similar payment typically builds:

• ~$20,000 in equity
• ~$50,000 in appreciation

= ~$70,000 in net worth gained.

The Good News

You don’t need 20% down, perfect credit, high income, or a forever home.

Many buyers start with:

• 3% down
• FHA or VA loans
• First-time buyer programs
• Seller-paid buydowns
• Starter homes

You just need a Wealth First plan.

Your Next Step

I’ll help you:

• Compare renting vs buying
• Understand down payment options
• Get 5, 10, and 20-year wealth projections
• Build a clear path toward ownership and wealth

Final Takeaway:

The wealth gap isn’t about income. It’s about ownership. Every month you rent is a month you help someone else build wealth. The best time to start was yesterday. The next best time is today.