A couple, 27 and 28, say they dread family gatherings because her cousins, both a few years older and already homeowners, spend the whole time discussing their home equity and renovation plans. The couple has $38,000 saved but says they feel embarrassed admitting they’re still renting, even though they’ve been saving consistently for three years.

But having $38,000 saved at their age doesn’t necessarily mean they’re falling behind. They may not be ready to buy the home they want yet, but comparing their savings to someone else’s home equity ignores differences in income, timing, location, family assistance and how long each household has had to build wealth.

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Why This Comparison Doesn’t Hold Up

Her cousins may have bought at a different point in the housing market, had different incomes or received help from family. They may also simply have had more time to build equity.

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