Urban Institute, April 19, 2024, The Wealth Gap Between Homeowners And Renters Has Reached A Historic High
The significantly wider gap in average wealth (compared with median wealth) indicates that a large share of wealth is concentrated among a small share of households. Because of this, in a new analysis, we explore the reasons for the median wealth disparities, which better reflect differences among typical homeowners and renters.
We find that recent housing wealth gains are largely driving median wealth disparities. Because of supply shortages, home price went up, and rent prices also increased faster than incomes. This resulted in a higher housing cost burden among renters. Left with limited savings after paying for housing, renters have also not benefited from the strong financial market in the past several years, which further fueled the gap.
