According to a report from the Federal Reserve, folks who own homes have 48x more net worth than those who rent!
The median net worth of a homeowner over the age of 65 was $231,400, whereas the net worth of a renter at the same age was just $5,200, and that's a decrease from 2013 when their net worth was $5,500.
Each month renters pay money to a landlord, acquiring no equity. In fact, every rent check increases the net worth of the landlord and does nothing for the renter.
Homeowners, on the other hand, pay a mortgage each month and every check increases their net worth. In the beginning the majority of the check is interest, but over time, the interest to principal ratio flips until the homeowners actually owns their entire house.
As rental rates have continued to rise, the percentage of a renters' incomes going to rent has also increased. Social Security and wages haven't come even close to keeping pace with inflation. Livelong renters struggle to keep hold of money simply because there is no equity location to deposit funds.
Of course, buying a house now is a great way to grow your value over time. Not only are you paying off your purchase price, but the constant, long-term growth in the value of real estate increases one's net worth.
If you're planning for retirement, especially in your 30's, consider buying a home. It's the single best way to ensure that you have several hundred thousand dollars available into retirement.