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Today, let's look "underneath" the headlines & avoid misleading statistics
A realtor posted this comment challenging me about homeownership. He shared that homeowners' net worth is ~44x higher than renters. (The # is essentially true.)
What is wrong with this statistic?
A realtor posted this comment challenging me about homeownership. He shared that homeowners' net worth is ~44x higher than renters. (The # is essentially true.)
What is wrong with this statistic?
I asked him what he thought. His response below.
In some cases, these are true. But are they real reason why homeowners have 40x higher net worth than renters?
Is the HOUSE the only variable?
His explanation assumes the house is responsible.
Let's go deeper
In some cases, these are true. But are they real reason why homeowners have 40x higher net worth than renters?
Is the HOUSE the only variable?
His explanation assumes the house is responsible.
Let's go deeper
The wealthier buy more 2ct diamonds than average people. Does buying a diamond make you wealthy?
Of course not! The wealthy own more of everything!
So why do we uncritically accept the premise that homeowners are wealthier *merely because* they own a house?
And then, politics
Of course not! The wealthy own more of everything!
So why do we uncritically accept the premise that homeowners are wealthier *merely because* they own a house?
And then, politics
I want you guys to learn how this country -- including local citizens & *the government itself* -- instituted redlining policies to keep minorities from homeownership
I wonder how that affects wealth rates after a few generations
I wonder how that affects wealth rates after a few generations
This is why money is political. So many young people best themselves up for not owning a house without asking:
1. Do I really want to buy a house?
2. Why is it so much harder for me to buy than my parents? Am I just dumb? Lazy? Or are there unseen external forces affecting me?
1. Do I really want to buy a house?
2. Why is it so much harder for me to buy than my parents? Am I just dumb? Lazy? Or are there unseen external forces affecting me?
A common Q I get: "Ramit, aren't you the guy who talks about personal responsibility? Why are you bringing politics into this?"
My response: https://twitter.com/ramit/status/1172975427385724929
My response: https://twitter.com/ramit/status/1172975427385724929
