Here are steps renters can take toward building wealth [Video]

It’s no secret that homeowners often have a higher net worth than renters. But while renters face unique affordability challenges, there are still steps they can take to improve their financial standing.

In 2022, the typical renter in the U.S. had a median net worth of $10,400, according to a new report by the Aspen Institute. That’s a record high — even though it represents less than 3% of the nearly $400,000 net worth of homeowners.

Renters generally face financial challenges such as lower income, higher debt, less savings and lower rates of asset ownership, the report noted.

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The wealth gap is not solely due to home equity. Median home equity, at $200,000, accounts for only slightly more than half of homeowners’ median net worth, suggesting …