Inflation will remain sticky but firming between now and year-end, says Morgan Stanley's Gapen
CNBC's Steve Liesman with Michael Gapen, Morgan Stanley chief U.S. economist, join 'The Exchange' to discuss markets, the Fed and the U.S. GDP growth slowing.
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38 minutes ago
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How Much the Average Homeowner Has in Savings vs. the Average Renter
Housing is the largest expense for the average American consumer. The more people have to spend on housing, the less money they have available to invest, save, or spend in other categories. But does owning your home instead of renting affect how much you have in your savings account? And is it the best financial decision for you right now? Check Out: Try This: The Federal Reserve's most recent Survey of Consumer Finances suggests the answer is yes. Here's how the average renter's savings compares to those of the average homeowner. The Survey of Consumer Finances data goes back to 1989, and since then, homeowners have always had more in savings than renters, on average. However, the gap between homeowners' and renters' savings has been growing. For example, in 1995, on average, homeowners had around twice as much saved as renters. Now, homeowners have five times more in savings than the average renter. Up Next: The most recent national data estimates that the average renter had $16,930 in savings. That includes all money in savings, checking, emergency funds and money market accounts. Though rent amounts will vary greatly depending on your location and size of your space, the current national average rent in the United States ranges from about $1,625 to $2,100 per month, which is a 1.1% increase compared to last year. By comparison, the average homeowner had $85,430 in savings, which is nearly $70,000 more than the average renter. That's a big difference when it comes to what you're able to allocate for emergency savings and retirement accounts. However, buying a home is not an option for the average savings, as the national average house price in the U.S. for Q1 2025 is $503,800, whereas the median sales price in the same period was $416,900, Perhaps counterintuitively, renting is often less expensive than owning a home. In the largest 50 metropolitan areas in the U.S., the median cost of renting is currently $1,398. This figure has been trending modestly downward since the second half of 2022, and represents the middle ground, with half of rents being higher and half lower, so it is quite subject to fluctuations. The median home price is currently $416,900, and the average mortgage rate is 6.97%, per the Fed. With a 20% down payment and a 30-year fixed-rate mortgage, your monthly mortgage payment likely ranges from $2,167 to $2,715, excluding taxes and insurance. High interest rates are likely driving most of the higher costs of homeownership. If mortgage rates go down as expected, monthly mortgage payments will decrease. However, despite the higher costs, homeowners still save more than renters. So why is there such a big difference between how much renters save and how much homeowners do? One explanation is that rental prices continually increase while the cost of owning a home stays relatively stable after the purchase. Say you buy a new home with a 30-year fixed-rate mortgage. Your monthly housing costs will be stable for the 30 years of the loan. After you've paid off your mortgage, you'll have to pay only taxes, insurance and maintenance. Unexpected maintenance costs, such as roof damage or broken pipes, can eat into a homeowner's savings, whereas renters don't have to pay for these costs out of pocket since they're the landlord's responsibility. However, renters do have to cover rising rental rates nearly every year. Since 2019, rent prices have increased by around 19% nationwide. Rising rent prices can take up larger and larger chunks of renters' budgets. As their housing costs increase, they have less money to put toward savings and other financial goals. By comparison, homeowners have more of their income to put into savings after paying off their mortgages. The bottom line is that if you're a renter hoping to put more in your bank account, you should try these money-saving strategies: Pay off debt with high interest rates: High-interest debt can prevent you from building your savings. Start by paying off any loans with high interest rates, like credit card debt. Live with a roommate: Splitting your housing costs with a roommate will give you extra money each month to put toward savings. Renegotiate with your landlord: When your lease is up and it's time to sign a new one, negotiate your monthly payment. If your landlord charges more than the market rate, it may be worth moving to a more affordable home. Finally, remember to put at least some of your savings into a high-yield savings account so you can grow your money. Caitlyn Moorhead contributed to the reporting for this article. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard How Much Money Is Needed To Be Considered Middle Class in Every State? 10 Unreliable SUVs To Stay Away From Buying This article originally appeared on How Much the Average Homeowner Has in Savings vs. the Average Renter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
How Much the Average Homeowner Has in Savings vs. the Average Renter
Housing is the largest expense for the average American consumer. The more people have to spend on housing, the less money they have available to invest, save, or spend in other categories. But does owning your home instead of renting affect how much you have in your savings account? And is it the best financial decision for you right now? Check Out: Try This: The Federal Reserve's most recent Survey of Consumer Finances suggests the answer is yes. Here's how the average renter's savings compares to those of the average homeowner. The Survey of Consumer Finances data goes back to 1989, and since then, homeowners have always had more in savings than renters, on average. However, the gap between homeowners' and renters' savings has been growing. For example, in 1995, on average, homeowners had around twice as much saved as renters. Now, homeowners have five times more in savings than the average renter. Up Next: The most recent national data estimates that the average renter had $16,930 in savings. That includes all money in savings, checking, emergency funds and money market accounts. Though rent amounts will vary greatly depending on your location and size of your space, the current national average rent in the United States ranges from about $1,625 to $2,100 per month, which is a 1.1% increase compared to last year. By comparison, the average homeowner had $85,430 in savings, which is nearly $70,000 more than the average renter. That's a big difference when it comes to what you're able to allocate for emergency savings and retirement accounts. However, buying a home is not an option for the average savings, as the national average house price in the U.S. for Q1 2025 is $503,800, whereas the median sales price in the same period was $416,900, Perhaps counterintuitively, renting is often less expensive than owning a home. In the largest 50 metropolitan areas in the U.S., the median cost of renting is currently $1,398. This figure has been trending modestly downward since the second half of 2022, and represents the middle ground, with half of rents being higher and half lower, so it is quite subject to fluctuations. The median home price is currently $416,900, and the average mortgage rate is 6.97%, per the Fed. With a 20% down payment and a 30-year fixed-rate mortgage, your monthly mortgage payment likely ranges from $2,167 to $2,715, excluding taxes and insurance. High interest rates are likely driving most of the higher costs of homeownership. If mortgage rates go down as expected, monthly mortgage payments will decrease. However, despite the higher costs, homeowners still save more than renters. So why is there such a big difference between how much renters save and how much homeowners do? One explanation is that rental prices continually increase while the cost of owning a home stays relatively stable after the purchase. Say you buy a new home with a 30-year fixed-rate mortgage. Your monthly housing costs will be stable for the 30 years of the loan. After you've paid off your mortgage, you'll have to pay only taxes, insurance and maintenance. Unexpected maintenance costs, such as roof damage or broken pipes, can eat into a homeowner's savings, whereas renters don't have to pay for these costs out of pocket since they're the landlord's responsibility. However, renters do have to cover rising rental rates nearly every year. Since 2019, rent prices have increased by around 19% nationwide. Rising rent prices can take up larger and larger chunks of renters' budgets. As their housing costs increase, they have less money to put toward savings and other financial goals. By comparison, homeowners have more of their income to put into savings after paying off their mortgages. The bottom line is that if you're a renter hoping to put more in your bank account, you should try these money-saving strategies: Pay off debt with high interest rates: High-interest debt can prevent you from building your savings. Start by paying off any loans with high interest rates, like credit card debt. Live with a roommate: Splitting your housing costs with a roommate will give you extra money each month to put toward savings. Renegotiate with your landlord: When your lease is up and it's time to sign a new one, negotiate your monthly payment. If your landlord charges more than the market rate, it may be worth moving to a more affordable home. Finally, remember to put at least some of your savings into a high-yield savings account so you can grow your money. Caitlyn Moorhead contributed to the reporting for this article. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 10 Unreliable SUVs To Stay Away From Buying 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on How Much the Average Homeowner Has in Savings vs. the Average Renter Sign in to access your portfolio
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10 hours ago
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I'm a Gen Zer who landed a 6-figure job at Morgan Stanley before graduation. Here's what the process was like — and why you should refresh a surprisingly important part of your résumé.
Sara Thomas, a University of Chicago student, secured a role at Morgan Stanley before graduation. She said networking, campus finance clubs, and an often overlooked resumé section helped her land the role. Gen Z continues to be attracted to Wall Street careers, despite the long hours and high demands. This as-told-to essay is based on a conversation with Sara Thomas, 22, a 2025 graduate from the University of Chicago and incoming investment banking analyst at Morgan Stanley. Business Insider's recent "Path to Wall Street" series highlighted how finance careers continue to attract young talent, despite the industry's long hours and demanding entry-level roles. Entry-level bankers typically earn about $110,000 a year, not including bonuses. This interview has been edited for length and clarity. I had barely decided on banking as a career choice when I had to start preparing for interviews. My experience was similar to most stories I've heard about the banking world: the recruiting process starts early. Before submitting my internship applications, I spoke to about five people at each major bank — mostly recent UChicago grads and people the university's career advancement program connected me with — so they would recognize my name when they saw my résumé. Cold LinkedIn messaging didn't work very well for me. Those introductions are often necessary to get an interview. At most banks, I interviewed for multiple rounds, including calls focused on my personality and technical skills and a two-hour "super day." The whole process lasted about two weeks. Then, by the spring of my sophomore year, I was done. I landed an internship at Morgan Stanley, and I knew my full-time job would be set as long as I got a return offer. My prior internships had been at Bain Capital and the Chicago-based firm Ariel Investments. The only other career trajectory I considered in college was academia. I studied economics and considered getting involved with economics research, but I realized it wasn't for me. I just work better in a faster-paced finance environment. In my free time at school, I tried to focus on clubs and internships that would keep me close to startups and entrepreneurship, so I joined a venture capital fund on campus. I was also involved in a campus group for women and minorities interested in finance and investing. Those opportunities really helped me build my industry chops. I would tell any college student hoping to land a Wall Street or Silicon Valley job: be decisive. Even if investment banking or consulting isn't your lifelong passion, plan to commit to a career path sooner rather than later, so that you can give yourself the most amount of time to prepare, network, and do really well in the interviews. And, for the application process, students need to be careful with what they put on their résumé — recruiters pay a lot of attention to the "skills and interests" section at the bottom. Don't say that you're a mountain climber if you have never climbed a mountain, because people will ask you about your hobbies, and you need to be able to genuinely talk about them. Of course, your credentials matter, but I've found that recruiters are most interested in meeting well-rounded people. Job applications and postgrad life make me anxious sometimes. I've leaned on my friends a lot: Some aren't going into finance, others have gone through recruiting alongside me. I'm also grateful for my family — my Morgan Stanley role will be in San Francisco, and it will be the first time I've moved far from home, since I grew up in Chicago. Exercise has always been a coping strategy for me, too. I'm trying to build healthy habits and make sure I don't isolate myself. Those are the main ways I'm dealing with stress. Long, long term, my biggest goal is to be able to work for myself in some way. That could mean working at a big company that gives me a lot of autonomy to make decisions or starting my own company, if I am brave enough to do that. For now, I'm excited to keep building my career and learning from my coworkers. Having engaging conversations with people you've never met can be the most challenging part of the finance industry, but it's also the most rewarding. Do you have a story to share? Contact this reporter at allisonkelly@ or via Signal at alliekelly.10; here's our guide to sharing information securely. Read the original article on Business Insider
