From Yahoo Finance: 2025-06-08 19:01:00

Housing is the largest expense for the average American consumer. Does owning your home instead of renting affect how much you have in your savings account? The Federal Reserve’s Survey of Consumer Finances data suggests homeowners have five times more saved than renters, with an average homeowner having $85,430 in savings.

The median cost of renting in the largest 50 metropolitan areas in the U.S. is $1,398, while the median home price is $416,900 with an average mortgage rate of 6.97%. Despite higher costs of homeownership, homeowners still save more than renters. Rent prices have increased by around 19% nationwide since 2019, eating into renters’ budgets.

If you’re a renter looking to save more, consider paying off debt with high interest rates, living with a roommate to split costs, and renegotiating your rent. Putting some savings into a high-yield savings account can help grow your money. High interest rates are a major factor in the higher costs of homeownership, but homeowners still save more than renters.

Read more: How Much the Average Homeowner Has in Savings vs. the Average Renter