Home News GoLocalProv | Wealth Gap – Rhode Island Ranks 46th for Homeownership

GoLocalProv | Wealth Gap – Rhode Island Ranks 46th for Homeownership

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Monday, May 16, 2022

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RI ranks 46th in the United States for home ownership.Image file

According to a new study, Rhode Island is ranked at the bottom of the state of homeowners.

Rhode Island was the last to be ranked in New England, ranking 46th overall, according to data released by Wall Street 24/7.

Only New York, California, Nevada and Hawaii have low home ownership rates.

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“There is a direct correlation between wealth and homeowners. For most people, homes are the greatest asset a person has ever had. Buyers buy a small amount (5-20%) of their money. Take a break from the bank and enjoy the safety of the roof overhead, watching the assets valued each year, “said Sally Rapides, President and CEO. I am. Housing properties.

“Depending on when you’re ready to sell your home, they’re likely to make huge profits on your investment, which allows them to buy another home that’s more valuable,” Rapides said. He added. 2021-RI record.

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Residential Property President and CEO Sally Rapides

“The only opportunity for a lessor to build wealth is to save money. For most people, it’s very difficult. Therefore, you can’t exponentially increase your net worth in the acclaimed housing market.” Said Rapides.

“Nationally, homeowners who bought a typical single-family home for a median of $ 162,600 10 years ago may have accumulated $ 229,400 in their home wealth. Of this wealth increase. 86% could be due to higher prices, and the median home sales price for single-family homes has risen at an annual rate of 8.3% from the fourth quarter of 2011 to the fourth quarter of 2021. ” According to a March report released by the National Association of Real Estate Agents.

According to a 24/7 survey on Wall StreetRhode Island is ranked as follows:

> Home ownership rate: 61.6%

> Median home prices: $ 276,600 (14th highest)

> Median monthly housing costs (including mortgages): $ 1,879 (11th highest)

> Median monthly housing costs (no mortgage): $ 745 (sixth highest)

> Median household income: $ 70,305 (15th highest)

Changing market

Interest rates are currently rising, with 30-year fixed mortgages rising from 3% to over 5% over the past year, and interest rates can reach over 6%. The effect is that buying a home will be more expensive. It’s hard to buy for some, and “fewer homes” for others.

According to a March survey released by a real estate agent, “Home ownership will bring about a huge increase in wealth. Total housing wealth will increase by $ 8.2 trillion from 2010 to 2020, adding 6.3 million new households. A homeowner who bought a typical single-family home 10 years ago is likely to have accumulated $ 229,400 in home wealth with a median selling price of $ 162,600. “

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Graphic: National Association of Real Estate Agents, March 2022

According to the survey, “total housing wealth rose in all income groups, but we earned 71% of the growth in housing wealth in high-income groups.”

Black house It was at the same level as before the Commonwealth Citizenship Act was passedRedlining was the norm, and there was no law on housing rights.

“In fact, in the last 15 years, black homes have seen the most dramatic decline in racial and ethnic groups, and black home ownership in 2019 is about as low as when discrimination was legal. “Now,” said the National Community Reinvestment Coalition (NCRC).

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Graphic: National Association of Real Estate Agents, March 2022

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Photo: File

“I’ve never seen very wealthy people pay rent on Rhode Island for the rest of their lives. They own multiple homes in their lifetime. People over the age of 65 reduce their real estate portfolio. , Moving to rent as a second or third dwelling to simplify life, but they often retain winter and summer dwellings. ”

“One of the changes we’ve seen in the market is that it’s difficult for many first-time buyers in this market to take home ownership because student debt is crushing young adults. At the high end, many buyers have seen wealth transfers over the past five years, inheriting money from parents so that the next generation can use cash to buy much more expensive first and second homes. “I did,” said Rapides.

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