Agenda - Council - 08/27/2019 - Laserfiche WebLink

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DEMOGRAPHIC ANALYSIS Household Net Worth Table D-4 shows household net worth in the Ramsey in 2019. Simply stated, net worth is the difference between assets and liabilities, or the total value of assets after the debt is sub- tracted. The data was compiled and estimated by ESRI based on the Survey of Consumer Fi- nances and Federal Reserve Board data. According to data released by the National Association of Realtors, the average American homeowner has a net worth about 31 to 46 times greater than that of a renter and that in 2016 the average American homeowner net worth is estimated at 44 times greater than that of a renter. The Federal Reserve survey is conducted every three years and this research was based on the 2016 Federal Reserve survey that showed the median net worth of a homeowner was $231,400, whereas the median net worth of a renter was $5,200. • Ramsey has an estimated median net worth of $305,403 in 2019. Median net worth is gen- erally a more accurate depiction of wealth than the average figure. A few households with very large net worth can significantly skew the average. • Similar to household income, net worth increases as households age and decreases after they pass their peak earning years and move into retirement. Median and average net worth usually peak in the 65 to 74 age cohort. The median net worth in the Ramsey for age cohorts 45+ was $250,001 in 2019. Senior households usually have higher net worth due to their saving investments, and other retirement funds. • Households often delay purchasing homes and instead choose to rent until they acquire suf- ficient assets to cover the costs of a down payment and closing costs associated with home ownership. Lending has recently become slightly easier for obtaining mortgages making mortgages with little or no down payments easier to obtain in today's mortgage lending en- vironment than it has been the past year. $350,000 $ 300, 000 $250,000 $200,000 $150, 000 $100, 000 $50,000 $0 Median Net Worth $305,403 Ramsey Anoka Co. Metro Area MAXFIELD RESEARCH AND CONSULTING 15