For most families, a home is their biggest asset and the strongest path to building long-term wealth. But today, buying a home has become harder than ever. As prices rise and incomes struggle to keep up, the difference in wealth between homeowners and renters keeps growing.
The Wealth Gap Is Bigger Than Ever
According to the latest national financial survey:
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In 2022, the median wealth gap between homeowners and renters reached nearly $390,000.
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The average gap was even larger — more than $1.3 million.
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Over the last 33 years, homeowners’ wealth has grown dramatically, while renters’ wealth has barely changed.
This means homeowners are building financial security over time, while renters are falling further behind.
Why the Gap Keeps Growing
1. Home prices shot up — and renters didn’t benefit
Because housing supply hasn’t kept up with demand, home prices have risen quickly. Homeowners gained equity, but renters had no way to share in that growth.
2. Rents rose faster than incomes
Renters now spend more of their income on housing than ever before:
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About half of renters spend more than 30% of their income on rent.
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When so much goes to housing, there’s little left to save or invest.
Homeowners, on the other hand, have actually seen their housing costs go down over time — especially those who refinanced during low-rate years.
3. Renters have little left to invest
From 2019 to 2022:
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Homeowners’ median financial savings grew from $60,000 to $85,000.
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Renters’ median financial savings stayed around $1,000.
This shows how difficult it is for renters to build a financial cushion or prepare for a down payment.
Generational Wealth Makes the Divide Even Larger
A recent study shows that more than one-third of young homebuyers today use financial gifts from family to afford their down payments. Renters without family wealth don’t have that advantage — which means the gap continues into the next generation.
The Core Issue: Not Enough Affordable Housing
The biggest driver of this growing divide is simple: We don’t have enough housing that regular families can afford.
More homes need to be built — both to rent and to buy. Cities and states can help by allowing more types of housing, like duplexes, small multifamily buildings, and accessory dwelling units. These changes take time, but they’re essential.
What Can Help Right Now
While the country works to increase housing supply, there are steps that can help families today:
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More support for renters, especially those with low incomes
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Programs that help first-generation buyers who don’t have family assistance
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Down payment support and financial education
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Efforts like First Key Fund, which give first responders, veterans, teachers, and working families a real chance at homeownership
How First Key Fund Helps Close the Gap
First Key Fund was created to help families who serve our communities but can’t compete with rising prices and investors. By offering 1% home financing with no down payment, we help families:
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Build equity instead of paying rising rents
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Stay in the communities where they work and serve
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Create long-term financial security for themselves and their children
We believe homeownership shouldn’t be out of reach. By making housing affordable again, we can help close the wealth gap and create stronger, more stable communities for everyone.