New data from the National Association of Realtors® reveal that middle-income homeowners in the Greater Albuquerque Area accumulated $89,020 in wealth as their homes appreciated over the last 10 years. The data, which was featured prominently in NAR’s new report, Wealth Gains by Income and Racial/Ethnic Group, speaks to the value agents and Realtors® bring to consumers when helping buy and sell homes that build generational wealth.
“The financial benefits of owning a home are measurable and more obvious,” said Carrie Traub, 2023 GAAR President. “But the pride of homeownership and the security it can provide a family has a huge impact on children’s behavior, education, and future economic success.”
NAR data also showed substantial variation and inequality in wealth gains across different income and racial and ethnic groups. Low-income homeowners in the Greater Albuquerque Area were able to build $51,930 in wealth in the last decade from home price appreciation only, while upper-income households saw an increase of $122,530.
Although Asian homeowners experienced the smallest wealth gains among any other racial or ethnic group in the Greater Albuquerque Area, these owners were able to accumulate more than $53,970 in wealth in the last decade. White homeowners gained $123,920 in wealth, Black homeowners saw an increase of $96,620 and Hispanic homeowners experienced $95,350 in wealth gains from their home over the past 10 years.
“This analysis shows how homeownership is a catalyst for building wealth for people from all walks of life,” said Lawrence Yun, NAR’s chief economist. “A mortgage is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”
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