How much is the average homeowner savings and the average renter?

Housing is the biggest expense for the average American consumer. The more you have to spend on your home, the less money you can use to invest, save, or spend in other categories. But I will I own your home Instead of renting, will it affect the amounts I have in my savings account? And is that the best financial decision for you now?

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The Federal Reserve is the latest Consumer finance survey The answer suggests yes. Here’s how the average tenant’s savings are compared to the average homeowner’s savings:

The survey of consumer finance data dates back to 1989, and since then, homeowners have on average saved more than tenants. However, the gap between homeowners and tenants’ savings is growing.

In 1995, for example, homeowners, on average, avoided savings about twice as much as renters. Now the homeowner has it Save 5x the average tenant.

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Latest national data estimates that the average tenant has a savings worth $16,930. That includes savings, checking all the money. Emergency funds and Money Market Accounts. Rents vary widely depending on your location and size of your space, but the current national average rent in the US ranges from around $1,625 to $2,100 per month, up 1.1% compared to last year.

In comparison, the average homeowner’s savings are $85,430, nearly $70,000 more than the average tenant. That’s a big difference when it comes to what you can allocate for emergency savings. Resignation account. However, buying a home is not an average savings option, as the US average national home price for the first quarter of 2025 was $503,800, but the median selling price for the same period was $416,900.

Perhaps counterintuitively, renting is often cheaper than owning a home. In the 50 largest metropolitan areas in the United States, the median rental costs are currently $1,398. This figure has been modestly downward since the second half of 2022, representing the middle, with half the rent being affected by fluctuations as it is half higher and half lower.

The median home price is currently $416,900, with the average mortgage rate being 6.97% according to the Fed. With a 20% down payment and a 30-year fixed-rate mortgage, monthly mortgage payments can range from $2,167 to $2,715, excluding taxes and insurance.

High interest rates may encourage most of the higher costs of homeownership. If mortgage rates fall as expected, monthly mortgage payments will decrease. However, despite the higher costs, homeowners still save more than tenants.

So, why is there a huge difference between how much renters save and how much homeowners save? One explanation is that rental prices continue to rise, and the cost of owning a home remains relatively stable after purchase.

Let’s say you buy a new home with a 30-year fixed-rate mortgage. Monthly housing costs will be stable on a 30-year loan. After paying off your mortgage, you will only need to pay taxes, insurance and maintenance.

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Unexpected maintenance costs, such as roof damage and broken pipes, can be eaten up by the homeowner’s savings, but the tenant is the responsibility of the landlord, so you don’t have to pay these costs out of your pocket.

However, renters need to cover rental fees that rise almost every year. Since 2019, rent prices have risen by around 19% nationwide. Rent increases could account for a large portion of the renter’s budget and a larger chunk.

As housing costs increase, there is less money to focus on savings and other financial goals. In comparison, homeowners are increasing their savings income after paying off their mortgage.

The bottom line is that if you are a renter who wants to put more and more into your bank account, you should try these. Money saving strategies:

Pay off your debts at high interest rates: A high profitable debt can prevent you from building your savings. Start by paying off high-interest loans, such as credit card debt.
Living with your roommate: Splitting your housing expenses with your roommate gives you extra money each month and aim for savings.
Renegotiation with your landlord: When your lease is finished and it’s time to sign a new one, negotiate monthly payments. If your landlord charges more than the market rate, it may be worth moving to a more affordable home.

Finally, don’t forget to put at least some of your savings in High-yield savings account So you can raise your money.

Caitlyn Moorehead I contributed to the report in this article.

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This article was originally published gobankingrates.com: How much is the average homeowner savings and the average renter?

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