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Is There A Problem With Being House Rich?

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:

house ownership in the USA relative to income levels

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.

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Ty Lacroix

"Not All Realtors Are The Same"! This website and content are for you and are designed and constantly upgraded with the latest real estate trends, how-tos, and what is for sale on MLS. Our primary focus is guiding home buyers and sellers to make good decisions. We believe selling real estate is a process, not an event or knee-jerk reaction; we sleep well at night and ensure our clients do as well! We are not for everybody, nor can we please everybody, nor do we tell people what they want to hear; I know that may be old-fashioned and boring, but we are dealing with hundreds of thousands of your hard-earned money. Would you rather be happy, excited and bored or unhappy, excited and make a poor choice? About Ty I am a Broker with Sutton Group Preferred Realty Inc., Brokerage and the team leader for The Envelope Real Estate Group, that's enough about me! You see, this is about you, you do not want to hear blah blah stuff about awards, designations, or that we walk older adults across the street (I used to help old ladies cross the street, but as I got older I did not want my wife to think I was flirting) the reincarnation of Mother Teresa, walk on water or anything else to impress you. We let the numbers speak for themselves; success leaves clues!

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