What it means to be house rich
If you’ve owned your house for more than a few years, you’re likely sitting on some nice gains, if not an actual goldmine. But what does that mean exactly? And how does that net out across income levels?
The pandemic-related housing gains are unlike anything we’ve ever seen before so it’s not like you should expect this to continue.
But the housing market is more important for the middle class than the stock market for the simple fact that ownership of residential real estate is more widespread.
The top 10% controls nearly 90% of the stock market while the bottom 90% owns more than 55% of the housing market:
The writer of this article is not trying to talk anyone out of home ownership; if the majority of one’s net worth is tied up in the equity in their home, you should be careful.
The above and this link is an article written for the USA market which may not be that much different than our Canadian market, yes, the average prices may differ, but the demographics and likes and dislikes are similar.