According to the Federal Reserve’s Survey of Consumer Finances home owners are building their wealth at a rate four times that of renters. Net worth of a home owner over the past 15 years is 30 to 45 times greater than a renter. On average, a home owner has over $200,000 of net worth while a renter’s hovers around $5,000.

Home ownership is a significant component of the net worth calculation for the average wage earner.

So why aren’t renters able to buy a home?

A Federal Reserve survey shows that many renters wish to own a home but obtaining financing remains an obstacle. In addition, saving for a down payment is difficult. Many young people have college and credit card debt and find it hard to save.

The main reasons renters do not buy a home:

1. Not enough money saved or too much debt

2. Don’t make enough money

3. Credit isn’t good enough

4. Don’t want the upkeep that comes with homeownership

5. Don’t want to be tied down to certain area

6. Renting is more affordable than buying

7. Don’t want to tie money up in a house