Did you know that owning a home provides far more tax subsidies than renting? Although this is great for homeowners, it can be disheartening to renters who don't see many opportunities for owning a home or building wealth in their future.A Joint Committee on Taxation (JCT) report from 2018 titled 'Estimates of Federal Tax Expenditures for Fiscal Years 2017-2021' noted the federal government's subsidy plans for 2017-2021: $400 billion tax subsidies for homeownership and less than $72 billion for renters. Put simply, homeowners are getting six times as much money in subsidies as renters. Many people -- maybe you're one of them -- find it hard to meet their rent each month. Struggling renters could really use more significant tax subsidies. While the median income for a homeowner in the United States was $73,100 in 2016, renters rested at a much lower $37,600. Homeowners make up 64% of the American population as of 2018, and they received nearly 85% of housing tax subsidies. Hopefully more tax reform will shrink the gap between the subsidies provided for homeowners and renters, but for now, homeowners are getting far more benefits, which may serve as further motivation for prospective homebuyers. You may feel like homeownership is impossible, but there are many programs designed to help low- to moderate-income households cover their down payments and closing costs, as well as provide homeownership education and help every step of the way. Considering the significant benefits owning a home could grant you, they may be worth looking into!
