Thirty-two percent of Americans have lost their job or lost wages – or someone in their household has – due to the coronavirus pandemic, according to a new report from real estate brokerage firm Redfin. Delving into that number, 39% of renters reported a lost job or wages versus 30% of homeowners.
“The pandemic is exacerbating inequality and widening the wealth gap between those who own homes and those who don’t,” said Redfin chief economist Daryl Fairweather. “Renters who have lost jobs or wages are likely dipping into savings for daily living expenses, pushing homeownership further out of reach. More homeowners have been able to keep their jobs, and many who can work remotely are cashing in their home equity to purchase a bigger, better home in a more desirable area.”
The report, which surveyed more than 3,000 U.S. residents in October 2020, found that 50% of respondents say they’re financially better off than they were four years ago. Broken down by homeownership status, 53% of homeowners are financially better off than they were four years ago compared with 44% of renters. On the flip side, 37% of renters are financially worse off versus just 22% of homeowners.
“Even though the country is in the midst of a major economic downturn, the majority of homeowners have made financial gains over the last four years, partly due a big increase in home values,” Fairweather said. “But renters who have faced rising housing costs without a corresponding rise in wealth from home equity are more likely to be financially worse off than they were four years ago.”
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