Homeowners net worth compared to renters reveals a significant gap that has widened over decades, with homeowners typically building far greater wealth through equity and appreciation. In Colorado Springs, where median home prices stabilized around $441,000–$491,000 in 2026 (Pikes Peak MLS data), this difference is especially relevant for military families, first-time buyers, and long-term residents weighing rent vs. own decisions.
For national statistics and charts, see the Federal Reserve Survey of Consumer Finances and St. Louis Fed Housing Wealth Insights.
The National Wealth Gap. According to Federal Reserve data (2022 Survey of Consumer Finances, latest comprehensive figures), the median net worth of homeowners is approximately $397,000, while renters’ median net worth is just $10,400—a ratio of nearly 40:1. Homeowners accumulate wealth primarily through principal payments and property appreciation, while renters build no equity and face rising rents without asset growth. A 2025 update from the St. Louis Fed shows the trend holding: homeowner wealth continues to outpace renters by a wide margin, even as mortgage rates hover at 6–6.5%.
Why Homeownership Builds More Net Worth
- Equity Accumulation — Monthly mortgage payments reduce principal while rents do not. In Colorado Springs, a $400,000 home with a 30-year loan at 6.5% builds roughly $100,000–$150,000 in equity over 10 years (assuming modest appreciation).
- Appreciation — Colorado Springs has averaged 4–5% annual home value growth long-term. A $400,000 home could grow to $500,000+ in 7–10 years, adding substantial net worth.
- Tax Advantages — Mortgage interest deductions and potential capital gains exclusions provide additional financial benefits not available to renters.
Local Colorado Springs Perspective: In our market, military relocations (near Peterson AFB and Fort Carson) and remote workers drive demand. Many renters in areas like Fountain or Peyton pay $1,800–$2,500/month for 3-bedroom homes—money that could build equity if redirected to ownership. First-time buyers using VA loans (common here) often enter with zero down, accelerating net worth growth compared to renting. However, higher insurance costs (due to wildfire risks in places like Black Forest) and maintenance responsibilities offset some gains.
Is Homeownership Right for You? The wealth-building advantage is clear, but it requires commitment, good credit, and realistic expectations. Renting offers flexibility for those not ready to buy.
Considering buying to start building equity in Colorado Springs? Call, text, or visit thebaconpartners.com/contact for personalized guidance.
Want a step-by-step guide to getting started? Check out my article here: Steps To Buying a Home in Colorado Springs.
I’m Andrew Bacon, a Top Colorado Springs Real Estate Broker in Colorado Springs. I take care of my clients as family and aim to provide them with the necessary information and tools to navigate the complex markets in Colorado and around the US.
As a member of the Pikes Peak & Denver Metro Association of Realtors, I enjoy staying aware of current cultural trends and economic drivers.Check back regularly for new articles on all things real estate along Colorado’s Front Range.
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